LendingClub (NYSE:LC) notes that married couples who manage their finances together are (usually) more likely to say they’re in “a happy, stable partnership,” according to a research study carried out by the University of Arizona.
However, a LendingClub member survey has revealed that almost 70% of individuals have admitted to “hiding” some type of debt from their “significant other.”
LendingClub asks why we might be avoiding “money talk.” For starters, last year was a really volatile year for most individuals and businesses, the company acknowledged. And although vaccine news may have brought some hope, many consumers will be needing time to recover from almost a year of financial instability. So, whether it may be due to embarrassment, just wanting to avoid another potential argument, or “trouble budgeting,” LendingClub says they get it— “talking about money, especially right now, is not a romantic subject.”
While explaining what a money date is, LendingClub noted that it’s a special time that’s dedicated to “opening up” to our partners about money matters. It’s about “coming clean with your financial past, present, and future,” the company added.
Money dates are about revealing our attitudes, habits, and tendencies (good or bad) when it comes to “spending and saving.” Just the way we’ve been sharing our romantic history with our partners at the beginning of our relationships, trading our financial history can be “just as important,” LendingClub explains. They pointed out that regular conversations about money can “help you create and focus on shared money goals.”
Most US consumers would rather discuss marital problems than credit card debt, LendingClub claims. They also mentioned that just thinking about personal finances and debt can “bring up feelings of shame, guilt, and isolation—which is why it’s helpful to know you’re not alone.”
LendingClub points out that when we consider that only 40% of US consumers have enough money saved to cover a $1,000 emergency expense, and 78% of employees are living paycheck to paycheck, then being “on the same page about money (and coming clean about any hidden accounts) is crucial to any long-term relationship.”
Before going on your first money date, LendingClumb recommends that we should be fully prepared (or as much as possible). We need to begin by taking a close or careful look at our own personal money situation, the company suggests. They also mentioned that we can use the end-of-year financial checklist to determine where we may have spent the most. (Note: for more details on how to do this, check here.)
LendingClub adds that if you’re “building” your lives together as couples, then the path to money stability and financial health will require a serious “commitment of time and energy from both of you.”
They also noted that it’s best to keep scheduling money dates monthly until we are able to “discover our own rhythm.” LendingClub added that before we know it, having these productive conversations about our personal finances could become “second nature,” and eventually, a normal part of our daily lives.
As covered, digital banking challenger 86 400 has revealed that 74% of Aussies admit to having disagreements about money management with their partners.
As reported recently, 30% of Americans say COVID-19 has negatively affected their financial wellbeing, which is about the same number blaming the 2008 housing crisis (according to a survey).