The results are in… two heads are better than one and, when it comes to finances, one of those heads ought to be female if positive results are desired! It turns out men are nearly as clueless about money as they are about women. The quote above, while near a century old, shows just how little things have changed.
In the global economy today, the sex of the person who has the correct answer or the most talent is becoming irrelevant. Aside from a few obvious examples of how not to run a country or society (Iran, Saudi Arabia, Russia, Sudan, Zimbabwe…), the majority of the world’s population has come to understand~ results are better when both genders take an active role in affairs.
Unfortunately, this idea has not been fully implemented in relationships, as there still exists a substantial division of duties. Men, it appears, handle nearly all the investment and tax related matters, while women decide how to spend nearly 80% of all the household income. An obvious case of the left hand not knowing what the right hand is up to, and we wonder why relationships have financial problems!
Clearly men and women have some fundamental differences in how they approach money and investments, but when they combine their abilities they produce better results than by “going it alone.” On average, men have a tendency to be over confident and trade too much, while women tend to be hesitant and take fewer risks. Some experts have gone so far as to suggest that women are superior with financial issues- but that might be taking things too far if results are compared to a blended approach.
While there are differences in how men and women approach money matters, it’s also a matter in which both genders are willfully ignorant. From community college classes to online education, there is no excuse for not having a baseline level of financial knowledge. I have included numerous links to sites that offer additional educational in my older posts related to finances. If you and your partner aren’t working together, then it’s time to click on a few of them!
Four Reasons Why Couples Should Share Financial Responsibility
- Better communication. Couples that share equal roles in the relationship’s financial issues, have a better ability to communicate. As money matters are found in nearly all aspects of life, it should be of no surprise that couples who communicate about money matters will also inadvertently possess the ability to discuss other things as well.
- Sharing financial responsibility helps couples work toward common goals. For example, when both parties understand that the goal is to save for retirement or a child’s college education, it helps deter wasteful spending.
- Life comes with many unexpected events; divorce, death, illness, or unemployment. Any one of these events could put a partner who lacks financial knowledge at a real disadvantage. Care to guess what the odds are of encountering one of these events in your lifetime?
- Damage control. When both partners are actively engaged in a relationship’s financial affairs, destructive behaviors (gambling, substance additions, or impulsive shopping) can be identified before irreparable damage occurs.
Another pitch- there are two essential things that will come out of financial planning that people are fools not to address.
The first essential thing every relationship should have is a will. Unless you really think the government will handle your affairs in the manner you would prefer, it’s time to draft a will. It can be as simple or complicated as you want to make it, but it needs to happen. I’ve included a link below to a free “do it yourself” site, so no more excuses.
The second essential thing every relationship should have is life insurance. Unless you are so wealthy that the death of either you or your partner is of no financial concern, then obtaining some level of life insurance should be a priority. Life insurance is very cheap and aside from providing a couple with peace of mind now, it will make a very large difference in the lives of those left behind if anything unfortunate ever does happen. If you love and care about your partner, you will possess both of these items.
People who refuse to take responsibility for their present and future are pets. Yes, that’s right- PETS, (People Enjoying a Temporary Situation). Are you taking responsibility for your future and working to ensure your relationship will prosper? Take the quiz below to see how you compare to others and comments as always are welcome.
For additional information check out the link below:
Do Your Own Will Online for Free no more excuses