March 2021 Issue: Help your Clients Navigate Combining Finances-Help your Clients Navigate Combining Finances by Ben Jacobs

Help your Clients Navigate Combining Finances by Ben Jacobs

Pdf Summary

Managing household finances is an important aspect of any relationship. There are several methods that couples can use to manage their finances. One common method is to fully combine their finances, where they share all household resources and make financial decisions together. Another method is complete separation, where each partner manages their own individual finances. A middle ground option is a partial combination/separation, where couples have both individual and joint accounts and work together towards their financial goals. This may include having individual "allowance" accounts for discretionary spending. When advising clients on combining finances, it's important to understand each partner's spending and saving habits. If they have similar financial habits, fully combining their finances may be the best option. However, if there are significant differences, a separated or blended approach may work better. Ultimately, it's up to the couple to decide which method works best for their relationship. As a financial advisor, it's important to support their decision-making process and not impose personal values onto them.

Keywords

managing household finances

relationship

methods

combine finances

separate finances

partial combination

joint accounts

financial goals

individual accounts

allowance accounts