According to many, money is the number one reason for fights between couples.  While unfortunate, it’s sadly the truth.  Lack of money can cause a deep anxiety that may throw off otherwise happy couples into turmoil.  Money problems can spark bickering, blaming and power struggles that can strain relationships badly.

Income Levels

Naturally, couples on higher income levels should have less of these problems, right?  Unfortunately, mere access to more wealth doesn’t banish financial disputes between couples.  In fact, in plenty of situations, it can get even uglier.

Regardless of how much money finds its way into your home, you will benefit from coming up and sticking to a spending plan that takes into account both of your needs today and well into the future.

Two-Income Households

If you live in a two-income household, planning your spending will entail a little extra work.  Double the income doesn’t necessarily mean a better financial situation.  For some, having both parents at work entails extra costs that can offset any extra earnings generated by the lower-salary spouse if your combined income level is on the low to average range.  Once you factor in the cost of work-related expenses, additional taxes and extra spending caused by the absence of both parents to look after the kids, it is possible for you to end up with less money than if only one parent took a job.

For dual-income homes where the earnings are sufficient enough to warrant both partners working, a few things that are important to settle include:

1. Bank accounts

Will you keep your earnings in one joint account or keep separate bank accounts?  Keeping everything in a single place can lower associated fees but might create problems when taking out amounts for specific purchases.  If you decide on a single account, you will need to decide who will ultimately manage it, including having the final say in paying for bills and expenses.

2. Allowances

Because you will both need to work and incur personal expenses, you need to decide on an appropriate allowance.  Whatever amount you eventually agree on, make sure it is available regularly.  If you decide on $500 a month each and you decide to take out your spouse’s share for an impulse purchase, pray you can replace it before they find out.  Doing so can risk facing a potentially major altercation at home.

3. Savings and Investments

Decide jointly on a savings and investment plan.  Make sure to sit down and consider each partner’s specific suggestions.  Consult a trusted financial planner to help resolve disagreements if you are unable to come up with an amicable solution.

4. Major Purchases

Major purchases will need to be decided jointly.  Regardless of whether you think you can afford a new car or major appliance, acting without your partner’s consent is almost always certain to cause an altercation.  After all, if a large purchase will put you in debt, both your spending power will be affected, not just yours.

5. Credit Cards

Like major purchases, credit cards can be a source of problem for couples.  Most of it happens simply because plastic spending is so susceptible to going unchecked.  Make sure to audit all your credit card statements monthly to ensure neither of you are spending outside your income range and digging each other deep into debt.

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