Ramit Sethi: Why Couples Must Split Financial Duties To Protect Their Money
Written by
Adam Palasciano
Edited by
Nicholas Morine
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Relationships can be very complex. This is especially true when it comes to relationship roles. For example, one partner might be better at planning events and organizing vacations and the other might be better at managing finances. But sometimes, one partner taking complete ownership of a role isn’t the best idea.
Financial guru Ramit Sethi spoke with CNBC Make It and explained that there’s one common mistake he sees many couples make — just one partner manages the money and makes financial decisions.
“Often one partner has taken on the role of the ‘money person,'” Sethi explained to CNBC Make It. “But what happens if that person is hit by a bus? It’s dangerous for one partner to hold all the financial knowledge.”
To add, the Fidelity Investments 2024 Couple and Money Study highlighted that more than 1 in 4 partners resent being left out of financial decisions. However, there are some things that the “money person” in the relationship can do to fix that.
The ‘Money Person’ Needs To Make Changes
If you’re the money person in your relationship, it’s important to take some steps to delegate some financial tasks to your partner. You can start with something small like giving your partner the responsibility of paying the utility bills or managing the monthly grocery budget.
“What you want are clear lines of responsibility and clear lines of ownership,” Sethi explained. “People respond well to ownership and want to play a role in the finances.”
Also, try to avoid complex financial terms like annual percentage yield or compound interest when speaking about financial matters. There’s usually a simpler way to explain things that might be more effective for someone who doesn’t understand as much about finance.
It’s Important to Talk About Money
Creating an environment where both partners feel comfortable discussing financial matters is really important for a healthy relationship.
Be sure to avoid any sort of finger-pointing and blaming about spending and saving. This can lead to bad feelings and one partner becoming defensive, which is the opposite effect you want. Instead, try to reframe the conversation about how you can improve your financial future together.
More From GOBankingRates
