Your current love interest is hardworking, good-looking, and funny. What more could you want in a potential spouse?
Here's something: financial compatibility.
It's no secret that money is the root of many marital problems. In fact, according to a recent study from Bread Financial, 58 percent of Millennials and 57 percent of Gen Z report arguments with their spouse over finances. The most common dispute? Shopping and spending habits. About 51 percent report these disagreements. Next line for these two groups are budgeting and monthly expenses. Baby Boomers, who discuss finances less frequently than other generations, say it is credit card debt that sparks arguments.
Most financial counselors agree that the keys to financial compatibility are honesty, planning, and agreement.
Even savers and spenders can become financially compatible if there is a money plan in place with clear expectations about duties and priorities. Couples should make finances a topic of conversation and both should know where money is going.
Long before marriage, potential spouses should have a clear idea of their partner's financial situation. When you marry, your partner's debt can become your problem.
There should be agreement on long- and short-term financial goals. Couples should be able to agree on a plan for retirement savings, vacations, and big life steps, such as buying a house.
Honesty is crucial. According to Bread Financial, about 45 percent of respondents in a study admitted to hiding purchases from a partner. Financial success and compatibility is not so much about deviating from a budget, but an honest attempt to stay with the plan.
