KEEPING LOVE IN THE RED AND MONEY IN THE BLACK

Married CPAs Share Five Financial Tips for All Couples

Nothing can ruin a romantic candlelit dinner for two this Valentine’s Day like the finger pointing over finances when one spouse blows the budget for the latest electronic device and the other forgets to pay the electric bill (hence the candlelight).  The current economic crisis can really heighten the financial tension.

Married certified public accountants (CPAs) Allyson and Rick Baumeister are partners in a Fort Worth public accounting firm and have seen it all when it comes to couples fighting over finances. They offer the following five tips to help couples avoid financial fights:

Tip #1: Set a standing weekly meeting to talk about finances. 

When it comes to making your marriage and your money work, communication is key. The Baumeisters recommend couples sit down once each week to go over the family budget and discuss progress toward financial goals.

“Couples should have conversations about where their money is going to be spent and how it will be saved and invested before that money is spent, put in the bank or stock market, and given to charity,” said Allyson. “Financial decision making must be a joint process.”

Tip #2: Designate a financial point person.

While financial decision making should be a joint endeavor, the Baumeisters say that day-to-day financial tasks should not.

“Put one person in charge of routine financial logistics like paying bills and reviewing bank statements,” Rick said. “With one person in charge, you don’t have to worry about whose turn it is to pay what bill.”

Tip #3: Know your spouse’s money personality. 

People tend to treat money how their parents did. The Baumeisters say people get emotional about money and it’s helpful to know your spouse’s money make-up. Does he or she spend money to commiserate? To celebrate?

Recognizing one another’s money personality is a step toward reining in excessive money behaviors.

Tip #4: “Our money,” not “his” or “hers.”

You may have his and her towels, but that’s where the separation should end say the Baumeisters. The CPA couple recommends treating all money made and disbursed as “ours.”

Tip #5: Be on the same page when it comes to kids and money.

Money and kids are often cited as two reasons for divorce, so combining the two can create an especially charged atmosphere. Allyson and Rick advise parents to be on the same page regarding allowances and wants versus needs.

“Set a good financial example for your children,” said Rick. “Your kids are watching how you spend and whether or not you save for the future, so be a good role model.”

Couples should learn how to meet in the middles when it comes to finances and are urged to test their financial compatibility with a quiz developed by Texas Society of CPAs. 

To take the quiz, click here.