If we are brutally honest with ourselves, then money is the root of all problems. Okay, maybe not ALL problems, but a decent amount of them stem from money. Problems in relationships are no different. Often, money can make or break a relationship without you even noticing it is happening.

Here are some ways this can happen…

1.) Lack of Communication – Lack of communication is one of the biggest problems with relationships in general. However, when you add money into the mix things get even messier than they already were. Setting a budget together and communication to one another where the money is going each week or month is extremely important to understanding your financial situation as a couple. Without a budget and some knowledge of where the money goes, both people in the relationship can just continue to spend without realizing that the money source is being depleted very quickly.

2.) Overspending – Overspending on either side can be dangerous. If you both overspend without realizing it, the money that you needed to pay the bills may be gone without you even realizing it. This goes along with communication. If you find something that you want, you must be sure to communicate it with your significant other in order to not overspend, especially when times are tough.

3.) Moving Too Fast – Sharing a bank account and moving into a relationship too fast can also be a big downfall. Money is an extremely personal thing and when you work hard for your money you want to ensure it is being spent in the right way. Getting a joint bank account and throwing your money into the same account too early is just waiting for something bad to happen. The other person may spend your money and you may not have enough money left to spend for yourself. Try to keep things separate until you know how strong the relationship is and whether or not it will last.

4.) Secret Spending – Make sure you are being honest with one another. Secret spending such as gambling or bad shopping habits can lead to a great deal of unwanted fights and problems. If you have a problem, make sure your significant other is aware of it so that you can help each other stay in line.

5.) Responsibilities – Just like it is someone’s job to take out the trash or empty the dishwasher, make sure you are making sure that it is someone’s “job” to pay the bills each month and organize the finances. Without this being someone’s responsibility, some bills may slip through the cracks and forget to be paid each month. Keeping track of the money is crucial to survival when you are on your own, when you add a family into the mix it becomes even more crucial to understand how much you do or do not have.

Money problems affect family relationships and friendships as well as romantic relationships, much of which stems from lending money to people close to you and not getting repaid. Communication, planning, and being organized is definitely the key to good financial planning in a relationship. Make sure that you both have the same goals and budget in mind in order to keep the relationship stable.

— By Hannah Waters, Geezeo.com

Photo By: Jane M. Sawyer

Further Reading

• Fresh Out Of College? Start Your Financial Planning Today! (2)
• How Much is Too Much? (0)
• Kids and Money – Can they mix? (1)
• Four Things Your Parents Can Teach You about Money (2)
• Blogger Focus : Living Almost Large (1)

Tags: communication, family, Financial plan, friendship, money, Overspending, Personal finance, relationship, trust

This entry was posted on Thursday, April 23rd, 2009 at 5:00 pm and is filed under Budget, Life, Saving, Social/Environmental. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.