More than a tenth of respondents in a relationship said they rarely talk about their finances together when asked by RBC Brewin Dolphin.
Women were more likely to have regular discussions about shared finances than men, with half (50%) talking about the matter regularly. However, the topic of money only arises in conversation when a specific incident needs to be addressed for 40% of men.
Compatibility with finances was a more pressing issue for women too, as almost three-quarters (71%) value that aspect in a relationship, compared to 59% of men who believe in its importance.
Financial compatibility is where you can live with the approach of your partner’s financial goals and values and is not related to earning the same amount of money.
In terms of location, couples in the West Midlands place the most importance on financial compatibility in a relationship, with Londoners in second place.
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But London residents were also most likely to save talking about money with their partner until an issue over bills, insurance or other financial matters arose, with almost half (46%) saying that was the case.
One in 10 couples in the North East of England admitted they never discuss finances together.
Meanwhile, over two-thirds of the 2,000 respondents said they didn’t have a contingency plan for their money should the relationship with their partner end.
Overall, just half of people in a relationship are satisfied with how their partner handles money, according to the wealth manager’s study.
‘Huge risk to individual wealth plan’
Ahead of Valentine’s Day, Charlotte Tattersall, financial planner at RBC Brewin Dolphin, said having a partner who doesn’t share your “money mindset” could be a huge risk to your individual wealth plan.
Tattersall said: “Combining savings with a partner can make it easier to build up a bigger pot, potentially giving you greater buying power and a healthier combined financial position, but there are many ways you can protect your own finances as an individual too.
“As a start, it is recommended to build a savings buffer to cover three to six months of essential expenditure as an ‘emergency fund’, and consider the use of tax-efficient allowances, including ISAs and pensions, as appropriate. It’s also important to consider whose name assets and savings are in, especially if you are not married or in a civil partnership, so that assets can be split as accurately as possible in the future, if needed.”
The wealth manager also recommended having regular discussions about saving, spending and planning for the future, and if there is a dispute in values over money, there is no need to panic.
She added: “Couples need to push past uncomfortable feelings around money talk and should plan to have regular discussions about how you can both approach saving, spending, and planning for the future. You and your partner may not view finances the same way – and that’s ok.
“Various factors impact this, such as parental influence and gender, amongst others. The way we are socialised and the environment we are raised in can influence different money priorities, investment appetite and financial confidence, perhaps more so than we realise.
“Economic conditions also matter – growing up or living in either a wealthier or disadvantaged area can impact how we perceive financial security and dictate our financial priorities. It is important to spend time understanding your own money mindset and that of your partner, so you can be better equipped to make informed financial decisions together.”
