Financial Literacy in Your Relationships

Financial Literacy in Your Relationships
July 4, 2016 Creditcupid
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How Financial Literacy Can Improve Your Relationships

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Financial Literacy in Relationships

The impact of financial literacy in relationships is oftentimes underestimated. It is

detrimental to a relationship if there is lack of understanding or appreciation of financial

principles by either party. In fact, studies have shown that financial issues are the

leading cause of stress in relationships. One survey conducted by SunTrust Bank found

that as many as 35% of respondents believed that money was the major cause of

friction in their relationship. Another study indicated that couples who fight about money

early in their relationships. Regardless of their debt burden, income and net worth, were

more prone to divorce. In many cases, the cause of financial tension in a relationship

stems from impaired financial literacy by both or either partner.

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What is Financial Literacy?

Financial literacy is “the possession of knowledge and understanding of financial

matters.” This understanding of financial principles can improve the relationship

between couples. Without a proper understanding of how money works, people are

likely to make poor financial choices. In a relationship, poor financial decisions not only

affect the decision maker, but also affects the other partner as well as all other family

members, and especially children. However, if both partners have a clear understanding

of how their financial choices affect things. It is more likely that their decisions will have

a positive impact in the relationship.

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Financial Literacy Makes For Relationship Literacy

Often times couples do not agree on financial matters because of differences in

socialization and differences in belief about how finances should work. Financial literacy

can help individuals to gain knowledge about concepts such as saving, debt

management, investing, preparing for retirement, insurance and so on. With increased

knowledge in each of these areas. Couples are more likely to agree of what are the right

decisions to make in order to end up in a better financial position.

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To learn more about financial literacy visit our friends at Daydream Financial or Financial Counselors Association of America

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