It happens too often.
One spouse takes the lead on all things financial while the other is hands-off. That may seem like a good idea, but it can lead to trouble down the road.
If the financially savvy spouse should pass away, the survivor (usually the wife, but not always) is left in a stressful situation because he or she knows little to nothing about the family accounts or how to access those accounts. Possibly, the surviving spouse never even met the financial professional who handles their investments.
This is why I believe finances should be a family affair. Both spouses don’t need to be experts in all things money, but they should have a grasp of their general financial situation and take part in any decisions that are made.
If finances have been a one-person show in your household, here’s how to transform that into a family affair:
Create a plan
When it comes to financial goals – or probably any goal for that matter – you can’t just blindly throw darts at a wall and hope everything works out. You need a plan, whether you are saving money for retirement, a new house, a vacation or some other expense that doesn’t fit into the daily budget. Everyone who is affected by the plan should be involved.
Also, I recommend putting that plan in writing because once it’s in writing, it becomes a living thing, not some nebulous notion. Write down your goals, create a timeline for achieving them and develop a roadmap for how you will get there.
Schedule dedicated time to work on things together
Wealth-building doesn’t happen on its own. To make finances a priority, regularly set aside time to work on things together, so it’s clear that all parties are dedicated to your financial goals, and one person isn’t pulling all the weight while others are out of the loop.
Household finances come with plenty of working parts. Taxes. Monthly bills. Investments. Although it’s important that everyone is aware of the big picture, you should delegate responsibilities for individual tasks.
Perhaps one person feels more confident handling the taxes. Another person may want to take charge of investments because they love to follow the market. Once again, the key is that everyone is involved, even if an individual carries out the specific assignments.
Make sure both spouses meet with the financial adviser
This is one time when you don’t want to split the duties. Both spouses should attend meetings with the financial …….