Money shouldn't be taboo but most new couples avoid talk
Staff Writer |
August is the most popular month in Canada for weddings and a new CIBC poll finds that only a third of couples about to get hitched or enter a common-law relationship actually had a serious talk about money.
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Yet, nearly everyone (99 percent) admits it's important to discuss how to plan and manage their finances together as a couple.
"While couples will spend several months planning, in great detail, their 'big day', our poll reveals that very few people actually broach the topic of how to plan and handle their finances once they begin their lives together," says Jamie Golombek, Managing Director, Tax and Estate Planning, Wealth Strategies Group, CIBC.
"When you're caught up in the bliss of getting married, talking about money isn't particularly romantic, but, it shouldn't be a taboo topic. Before saying 'I do', it's important to make sure you are on the same financial page, otherwise you're setting yourself up for problems down the road."
In his new report, For richer or poorer: Financial Planning Tips for Newlyweds, Golombek offers advice to couples whether they're about to tie the knot or simply considering moving in together on when and how to have that money talk and how best to "marry" your money personalities.
Two-thirds (66 percent) of those who plan to marry or live common law are entering their relationship in debt, including either student, personal, credit card, or mortgage debt. Yet, their top financial goal within the first two years of tying the knot is to save up for a trip or vacation (46 percent).
One-third (35 percent) who plan to marry or live common law say they've had the money talk in detail, with 40 percent saying they've only discussed how to manage finances together as a couple "briefly."
Of those who admitted they haven't talked about money before the "big day" or the "move-in" date, most (83 percent) said they didn't know either how or when to address the topic or said they plan "to play it by ear."
99 percent say it's very or somewhat important to discuss how they will plan and discuss their finances as a couple.
The poll findings also show that nearly two-thirds (63 percent) do not plan to sit down with a financial advisor after their honeymoon or enter into a common-law relationship. Yet, almost a third (31 percent) say it hadn't even occurred to them and admit it's probably a good idea.
"Perhaps the springboard for having the 'big talk' about money is identifying your and your partner's philosophies on handling finances," says Golombek. "If you're an impulse buyer, and your partner-to-be is a super-saver, he or she may feel your shared goals of saving for the future – for kids, a house, or a car - will be undermined." ■