The Biggest Financial Mistake that Couples Make
UBS polled 1500 high net worth women and men in marriages and came up with some interesting findings. Now, I have never been big on a small sample size in a survey representing a population of 327 million people. However, some of the findings of this survey seem accurate and match up with my experience.
There was one statistic that jumped out at me.
“Just 20% of couples participate equally in financial decisions, with seven in ten men taking the lead on long-term financial decisions.”
Given my experience in financial counseling, this statistic seems accurate or close enough—many reasons cited by the UBS report why financial decisions are not made as a couple.
Specifically, the UBS survey referenced women as the winds who were not involving themselves in the financial decision-making process. Some of the reasons cited were that women felt like their spouses knew more or they lacked interest in the process.
I have always felt that it is a luxury for either the husband or the wife to take full responsibility for the couple’s finances, leaving the uninvolved spouse stress-free. However, there are big risks that go along with not having a seat at the table.
If you delegate that responsibility to your spouse, you assume that your spouse completely understands how you feel about money. Further, I would suggest that the spouse involved in the decision-making would potentially make different decisions.
Knowing your spouse’s feelings concerning money would mean that you and your spouse have an effective dialogue about money. Unfortunately, studies show that meaningful conversations are not happening concerning in marriages concerning money. It is a subject mostly ignored.
Ironically, in most marriages, the spouse taking care of the finances wishes that their spouse would want to be involved. The survey had this to say about millennials.
Of those surveyed, 94% of millennial men want their spouses to be more involved.
Incidentally, it’s not always the man taking the lead in the financial decision-making. There are also plenty of women who are the sole decision-makers when it comes to finances and marriage.
Sit down and have a discussion with your spouse about being more involved with the finances. You might be pleasantly surprised by their reaction.
Need a second opinion about money and investment issues? Just ASK BOB! Bob is available and always happy to share his views. Bob Brooks is a Financial Adviser and host of The Prudent Money Radio Show, aired daily at 3 PM CST on 91.3 FM, 97.5 FM, and 99.9 FM in the Dallas Forth Worth metroplex. Listen online at www,prudentmoney.com. You can reach Bob at 972-386-0384 and online at email@example.com.