couples and money

Promoting Financial Literacy

www.credit.org

COUPLES and MONEY

About Springboard

Springboard is a non-profit organization founded in 1974.

We offer personal financial education and assistance with money, credit, and debt management through educational programs and confidential counseling.

About Springboard

Accredited by the Council on Accreditation (COA) Member of the Association of Independent

Consumer Credit Counseling Agencies (AICCCA) Member of the National Foundation for Credit

Counseling (NFCC) Certified by the Department of Housing and Urban

Development (HUD) Member of the Better Business Bureau (BBB)

Our Services Include

Credit and Debt Counseling Financial Education Programs – Seminars and

Materials Debt Management Plans Homeowner Assistance (Foreclosure

Prevention) 1-888-995-HOPE or 1-888-995-4673

First Time Home Buyer Education Seminars Reverse Mortgage Counseling Pre-Bankruptcy Budget and Credit Counseling Pre-Discharge Financial Management

Instructional Course

Over and over, research studies indicate that money is a source of conflict for couples.

One study showed that more than three-quarters of young couples divorcing before age 30 reported financial problems as the primary cause of their divorce.

Another study found one-third of married couples cited money as their #1 issue.

Introduction

According to the survey,

Couples who fight about money argue more often about how it is to be spent, than about how much they have.

It is the set of symbols that money represents the values, expectations and personal meaning attached to money that is often the true root of the argument.

Introduction

Planning Styles

Morphostatic planners. These folks are oriented to the present

Morphogenic planners. These people are flexible, wanting as many people as possible involved in the purchasing process.

What happens when these different types marry? It isn't hard to imagine some of the fights that could develop around financial issues.

Bob and Mary fight about how to spend money:

Values are deeply rooted in our history and experience of life.

From birth, we begin to learn what is important from our families.

The acquisition of values continues on through the schools, groups and teams we belong to, friendship and relationships we are part of.

Sometimes others are aware of what they are teaching us. Often they are not.

The media plays a big role in development of values.

Values and Expectations

Consider George and Patty purchasing a new car:

Differences in values make for conflict.

How to Talk About Money

Find a neutral time Don’t wait until spouse has charged up on the

credit card. Have a calm and relaxed discussion when there is

no money issue. Share your feelings

Volunteer your own feelings about experiences and hopes about money.

Know where you stand Be honest with yourself about how you feel.

Bring in a third party Seek out a financial/marriage counselor or

therapist.

Track Your Spending!

There are two things everyone needs to know before they begin to budget:

1. How much they earn

2. How much they spend

Track all of your spending for at least 90 days to

get started. But make it a habit to track Always!

Daily Tracking Use the forms provided in

this book Carry a small notebook Checkbook register Keep your receipts in a

separate envelope for each day

Use software like Microsoft® Money or Quicken® (chances are you already own one of these applications if you own a personal computer)

Locate a central place to put your receipts at the end of each day!

Monthly Expenses Tracking Sheet

Housing Food Insurance Medical Auto Child Support Taxes Personal Savings

Creating Your Budget

Your budget should be developed based on: Your goals Your income Your expenses.

Track Your Sources of Income

Use this chart to track all

your sources of income: Job Spouse’s job Part time job Rentals Commission/bonuses Child support/alimony Investments

Setting Goals

A short–term goal should be accomplished within one year.

A mid-range goal takes between 2 and 5 years to accomplish.

Long-term goals take over 5 years to achieve.

Write them down and post them to your refrigerator or bulletin board so everyone in the family can see them everyday.

Our Financial Goals

1. _Save for retirement_______

2. _Trip to Europe to see family

3. _New car________________

4. _Backyard Spa___________

5. _New roof_______________

Monthly Budget

Now that you’re more familiar with your income, expenses, and goals, it’s time to propose a budget.

Adding It All Up

Total Necessary Expenses

+ Total Discretionary Expenses

+ Total Debt Payments

= Total Monthly Expenses

If Your Expenses Exceed Your Income

Work to find solutions Credit counseling can help if you

have high debt payments that are upsetting your budget.

Whatever you do, don’t cut into the 10% - 15% you should be saving; you need to save up to three – six total month’s of expenses to get through an emergency

Re-evaluate your budget periodically, especially when your income or needs change.

Budget Saving Tips

Household Take advantage of sales, coupons, and

always comparison shop! Never pay more than you have to for anything.

Personal Care Find out where discount stores, beauty

colleges, and low cost dry cleaners are in your area, the money you save will be your own.

Budget Saving Tips

Child Care Can you work with your neighbors to form a

babysitting co-op? Clothing

Discount outlets, secondhand clothing stores, and thrift shops are great places for saving money on clothing.

Budget Saving Tips

Entertainment Rent a DVD/Video, make a bowl of popcorn and

have fun! Check your local paper for events in your area that

are free, or almost free for entertainment. Food

Plan your meals, make a list, and stick to it. Try to shop once a week or less. Extra trips to the

store are budget busters. Avoid fast food – this is the #1 leak in most budgets.

Always Keep Your Budget In Mind!

Plan: Plan for the future, major purchases and periodic expenses.

Set Financial Goals: Determine shore, mid and long range financial goals.

Know the difference between wants and needs: Take care of real needs first. Save what is left.

Don’t allow expenses to exceed income: Your take home pay is what you have available to spend or save.

Suggested Budget and Expense

Housing 35-45% Utilities 8-15% Food 10-20% Transportation 15-25% Medical 8-15% Clothing 3-5% Personal & Misc. 5-10% Saving for goals 5-10% Monthly Installments 10-20%

Money Tips for Couples

Try a joint household account for routine expenses and a separate personal account for each partner.

Set aside a regular time for discussion of money matters

Discuss facts and figures on paper Avoid blaming each other


Try not to bring up how parents or friends handle money

Keep each other regularly informed to avoid surprises

Have individual credit card history Look at other ways of managing your money


Divide responsibilities for financial tasks as evenly as possible

Avoid refusing to take an interest in financial matters

Avoid using money to control your spouse Discuss and agree about any unexpected

windfall


Involve your children Seek help immediately if spending is out of

control Develop some short and long range financial

goals together and check your progress

Your Free Credit Report

You should review your credit reports at least once a year.

You are entitled to one free report from each bureau every 12 months from:

www.annualcreditreport.com

877-322-8228 Scores are not free!

Thank You!

Springboard Nonprofit Consumer

Credit Management

800-WISE PLAN

www.credit.org

[email protected]