Honey, we need to talk

How often do you discuss financial issues with your partner? A new report shows that those who do are more likely to find themselves in a better position for success.

The release is timely, given that next week (25 – 31 March) is Global Money Week, an annual financial awareness campaign built to inspire young people to learn about money matters, livelihoods and entrepreneurship.

Lack of communication around finances is a recurring theme among Australian couples considering, going through, or who have gone through a separation, according to research conducted for Westpac recently.

What’s more, those who rarely spoke about finances with their partner were found to be more likely to report that they were not in a financially healthy position (68 per cent).

Australians feel money is a taboo subject all round, it seems. Westpac’s Finance and Separation Report found that talking to support networks about money was also considered awkward, with 49 per cent more willing to talk about intimacy issues than financial issues with friends.

Westpac financial expert Kate Holloway is encouraging Australians to have more open conversations about money, to help better prepare themselves financially – whether splitting up or not.

“Being informed is empowering and puts you in a much better position for success, no matter what relationship stage you are in”, Holloway said.

“Our research shows couples are more financially compatible (85 per cent) if they regularly speak openly about their finances, and encouragingly, 43 per cent of Australians in committed relationships are doing just that.

“Planning a future with someone you love is, in many cases, as much a financial commitment as a personal one. From discussing how to manage joint finances to making sure you’re staying on top of your account balances – there are practical considerations every couple should discuss.”

The Westpac Finance and Separation Report revealed that working through your finances early can pay off, with 84 per cent of those who finalised their separation doing something positive or financially significant within a year of their separation, such as sorting out their finances (33 per cent) and paying off debts (28 per cent)1. More than half of those who finalised their separation were positively managing their finances within the year after their separation.