Living together? Tackle your finances together!

Française 

By Guylaine Fauteux 

Like it or not, money plays a big part in everyone’s life. This includes couples living together. Spouses will always have different levels of financial education and different financial habits. So how do you bridge the gap and prevent things from falling apart? Communication is key. To foster communication, partners should strive to openly discuss their financial habits and priorities. Not everything can be solved with math! You can’t always put a figure on a person’s contributions to the family. Ultimately, spouses often achieve stability by pursuing equity rather than equality. They also have to consider any children they have as a couple or with other people. Whether you’re managing your relationship or your personal finances, you need to make compromises.

 

Use ACEF's budget planning template 

 

Do you already have your own way of budgeting as a couple? Need some advice or want to try a new approach? Here’s an overview of three commonly used budget templates. On the one hand, it’s important to find an approach to budget planning that works for you. It should reflect your personal values and take everyone’s financial situation into account. On the other hand, any approach to budget planning needs to remain flexible and responsive to change. 
 

SPLIT BUDGET 

In this case, it doesn’t matter who earns more or who earns less. Common expenses are split 50-50, and each member of the couple covers their own personal expenses. The situation is a bit like that of roommates who decide together which expenses they want to share. 
 

POOLED BUDGET 

In this case, all income and all expenses are pooled. The budget treats everyone and everything equally. Spouses combine their income, regardless of whether one makes more than the other. Both personal and common expenses are paid out of the shared budget. 
 

PRORATED BUDGET 

In this case, each spouse’s contribution to family expenses is based on their personal income. In other words, budget contributions are prorated to income. The spouse who earns 40 per cent of the family income covers 40 per cent of the family expenses. And the other spouse covers 60 per cent. Each person covers their own personal expenses. 
 

A good budget is the foundation of good financial health. The couple that budgets together stays together! Proper budgeting provides stability in a relationship by removing a potential source of conflict. 

ACEF
The Cooperative Association of Home Economics is a community-based non-profit organization that has been involved in the Lanaudière region since 1971. Its mission is to support, inform and educate people about personal finances, how to use them credit, debt prevention and debt solutions. ACEF also equips consumers to make informed consumer choices and to enforce their rights. It makes representations and gets involved in various social and economic issues to improve the living conditions of households in Lanaudière.
ACEF Lanaudière works in partnership with Union des consommateurs and Prosper Canada on the FEC project