Are You Financially Compatible With Your Valentine? (& a Fun Quiz to Take!)

Did you know that finances are one of the top three reasons a couple will get divorced? It can make or break your relationship. How you and your significant other handle money, saving, spending, and investments plays such a big role in if you will go the distance. So we’ve put together the top five questions to consider asking your Valentine to see if you are financially compatible. (Spoiler alert: It’s okay if your answers are different. The key to being financially compatible is open communication, compromise, and commitment to the financial plan you create together.)

“Money is the number one wedge in a relationship.” – Phil Cooper

1) How did your family handle finances growing up?

How our parents viewed and handled money has a big impact on how we do as well. Did your parents pinch pennies? Or did they spend money without any worry of how it might impact their finances later? What financial habits did you pick up from your parents? Take a moment to share with your Valentine the ways you saw your family handle finances and how that impacted the way you handle money today.

2) Do you want to retire on a beachfront property or close to home?

Believe it or not, the kind of lifestyle you want after you retire has a big impact on your finances! If you want a lavish lifestyle filled with travel and an expensive beachfront property to come home to, then you’ll need to do some major saving and investing to be able to afford it. When your Valentine has the same goals and desires, it is much easier to work toward that common goal. If you have different ideas of the kind of lifestyle you want after retirement, you’ll need to have more discussion to see if you can find a compromise.

3) What would it look like to merge our finances?

If you are considering being in a longterm relationship or getting married, it’s important to know how you will merge your finances. We recommend that if you get married, your finances should too! But not everyone is comfortable doing that. Regardless of how much you merge your finances, you need to discuss how and to what extent that will occur. Are there some expenses that will be shared evenly? What if one of you makes more than the other? How do your personal spending habits impact the amount you can contribute to the shared expenses?

4) What financial commitments do you have?

We all have a financial history, whether we took out a loan to further our education, borrowed money to get a reliable car, had unexpected medical bills, or overspent on our credit cards. It is nothing to be ashamed about, but you do need to talk about those things with your Valentine. If you are getting ready to merge your finances or share expenses, you’ll need to discuss how you are currently handling those financial burdens and how that impacts the rest of your spending and saving plan.

5) Can you talk openly about finances?

You will never find out if you are financially compatible with your Valentine if you can’t talk openly about finances. Sharing with one another about what is most important to you, how you feel financially secure, and what your goals are for your money in an open and honest way will ensure that you discover if you are financially compatible.

Bonus: Take the Financial Compatibility Quiz!

Grab your Valentine and answer the questions below. Give yourself the points for every question you both have the same answer to, and tally up the points to see how compatible you are.

● Would you rather travel once you retire or would you prefer to travel now? (1 point)

● Would you like to pay for some or all of your kids’ college education? (1 point)

● Would you rather eat out or make food at home? (1 point)

● Do you have a monthly budget? (1 point) ● Are you planning ahead for retirement? (1 point)

● Do you think it is a good or a bad thing to use credit cards? (1 point)

● Who would you prefer to be in charge of making sure bills get paid? (1 point)

● Will we combine our finances? (1 point) ● Can you talk with each other openly about all areas of your finances? (5 points)

● Can you both make compromises and come up with a plan for how you will handle your finances now and in the future? (5 points)

Results:

1-5: There’s hope! 🙂 Keep reading to find out how you can become more compatible financially.

6-10: Not bad! You’ll want to keep making progress by discussing those areas you don’t fully agree on.

11-18: You are compatible! Be sure to continue communicating openly so you stay on track and unified about your finances.

If you looked over these questions without your significant other, you might be wondering when the best time is to ask these questions. The answer will vary by the couple, but we always recommend talking about finances before marriage. If you have just started dating, you may not be ready to dive into some of these hard topics. But if you are getting serious about this relationship being for the long-haul, this is an important topic of conversation.

If you’re already married, sit down and talk through these questions with your spouse this Valentine season. You might learn some things you didn’t know before!

Don’t worry if you and your Valentine have completely different answers for some of these questions. Compatibility doesn’t mean you are exactly the same financially. It is okay if you are the “saver” and they are a “spender” or vice versa. Again, the key to being financially compatible is open communication, compromise, and commitment to the financial plan you create together.

If you and your Valentine are struggling to work through these questions or need help coming up with a financial plan, it may be time to get some outside help. A financial advisor can help you set long-term goals and investment strategies to help you know for certain that you have a good financial plan. Be sure to schedule a complimentary meeting with our team here at 210 Financial or give us a call at 309.263.1333!

All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 210 Financial is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and 210 Financial are not affiliated companies. 1201531-02/22 Content prepared by Savage Content Collective.

210 Financial is more than just numbers. The “210” in our name stands for a childhood home that represented safety, love, and family. That is what we want to provide for everyone that we care for. Welcome home. Welcome to 210.

This content is provided for informational purposes only. None of the charities mentioned in this blog are affiliated with 210 Financial or AEWM. 210 Financial is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and 210 Financial are not affiliated companies. 1170158 – 1/22

Content prepared by Savage Content Collective