In a recent survey, PayPal determined that finances are the biggest source of couples’ conflicts in U.S., especially among the young at heart. Nearly 60 percent of U.S. couples under age 35 said they argue over money at least once a month.
What are the arguments usually about?
* Investment risk. One partner might be more aggressive than the other. If so, the aggressive partner can be given a certain amount of “Las Vegas money” to invest.
Aside from those funds, most of the couple’s investing should go into a diversified portfolio spread among stocks, bonds, cash, real estate, etc. Thus, your overall financial goals won’t be threatened if one partner’s risky bets wind up worthless.
* Shopping. Few couples agree completely on how to spend. One strategy is to start at the top, finding a middle ground on how much to spend on major items: retirement accounts, children’s college accounts, saving for a down payment on a home, annual vacations, and basic living expenses.
Beyond these items, agree on a per-person ceiling each month. If each partner’s monthly cut-off for spending is $250, for example, approval will be needed before making larger outlays.
