Getting the Conversation Started: Four Topics Pave Way for Financially Secure Future

“What we’ve got here is a failure to communicate.” This famous piece of dialogue from Cool Hand Luke (ranked No. 11 on the American Film Institute’s list of the 100 greatest movie quotes) has a particular resonance for couples. What they don’t talk about could cost them, experts say.

As with everything in a relationship, communication about money is key, but many couples either don’t want to have that conversation or are ill-equipped to do so. In the book How to Speak Money by CNN’s Ali Velshi and Christine Romans, financial planner Stacy Francis observes, “Many couples don’t talk about money before they get married. They have no idea that their partner has $50,000 in credit card debt until they go to buy their first home together.”

Too much debt can end up in divorce, according to a Utah State University study cited in the book. For example, couples with $10,000 in debt and no savings is about twice as likely to separate as a couple with $10,000 in savings and no credit card debt. A new study by Money magazine finds that 13 percent of couples fight about money several times a month.

Talking about money is time well spent, but what topics would be the most constructive? What should couples be talking about to ease their stress level? Mary Brockhaus, Senior Vice President, M&I, a part of Chicago-based BMO Financial Group, suggests four financial topics.

∙Budget: Establish a budget to cover household expenses and entertainment, she offers. Schedule a monthly “budget night” to review spending and savings activities to see if you are on track and to make the necessary adjustments if not

∙Prior debt: You are what you owe. Whether it’s credit card debt or a student loan, Brockhaus observes that accumulated debt impacts cash flow. “A big influence on your financial health as a couple is the way you each handle your debt obligations,” she said. “Knowing your partner’s credit history can offer a glimpse into the future.”

∙Savings goals: Sharing savings goals is the first step to developing a financial plan that will keep you on track toward a financially stable future. For most, the top three financial goals include buying a home and saving for college and retirement.

∙Major purchases: “Simply discussing a purchase beforehand can save you from a potential fight,” Brokehaus offers.