MoneyCounts: A Financial Literacy Series Money and Relationships 11-A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214

Description Money is a personal and an emotional topic, thus you may be not comfortable with discussing money situations. In your relationship, however, matters of the wallet can be as important as matters of the heart. Money decisions impact every relationship from newlywed days of getting a joint bank account, sharing a home, to the retirement phase. For successful relationship, it is critical to have open, candid, and honest conversations about relationships with money (“money talk”).

Learning Outcome Recognize money personalities Evaluate your relationship with money Identify “deal makers and deal breakers” Tips and ways to discuss money matters

In the news! *Click the picture and it will open the hyperlink!

Why discuss money?

Money Personality According to Scott & Bethany Palmer For 70% of divorced couples, financial issues caused arguments 5 money personalities Each person has Primary and Secondary money personalities

Five Money Personalities Risk Taker Spender Flyer Security Seeker Saver

Five Money Personalities Risk Taker Spender Flyer Security Seeker Saver Who is very happy to spend money to enjoy life. There is no tomorrow and money is made to be spent. Who has money for a rainy day that may (or may not) happen, hates to accumulate debt but pays all bills on time and in full. Who loves ideas that may (or may not) make money, willing to gamble reaching for the big score in life. Who researches opportunities and possible investments, but very slow to take a dive due to fear of losing security. Who is happy to let someone else take the driver's seat and handle all financial matters.

Assess your relationship with money Identify YOUR relationship with MONEY!  What does money mean to you?

Tips for self-assessment What beliefs did you inherit from your parents in money matters? What do you remember the most from your childhood in regards to money? What is the first word that comes to your mind when you hear the word "money"? How important is money in your life? Why do you feel that way? Would you take a job (you may or may not like) just for the money? Do you attach a monetary worth to your being? Why do you feel that way? Which do you value more, money or material things? How do you make decisions to spend money (spontaneous, careful, do not care)? How do you feel about financially privileged people? How do you feel about financially deprived people?

How to discuss money? Personal Goals Financial Goals Decision (Joint vs. Individual) Additional Topics

Let’s discuss Who would keep the budget? Who would handle the bills and bill payments? How would you make money decisions for common purchases? How would you handle personal spending? How would you share planning for financial goals? How do you decide on needs and wants? Who maintains saving and investing? How do you handle tax obligations and filing responsibility? How do you plan for emergencies? Who would carry the insurance responsibility? How would you plan for retirement? What financial wisdom do you plan to leave for your family?

Let’s negotiate Should we collaborate or divide tasks? Negotiable Needs Non-negotiable Needs

Let’s get to know each other What does money mean to you? What is your money personality? What are your financial priorities? How do you make financial decisions? What is your ideal financial life? What are your financial expectations for yourself? What are your financial expectations for your partner? How do you overcome financial hardships? What do you value most in financial life? How willing are you to adapt to make your relationship works?

Money secrets and Infidelity Stop behaviors that would not be acceptable in your relationship Be Transparent Conduct a heart to heart conversation Reach consensus Expect resistance Respect mutual agreements

What’s the plan? We all fear to lose a loving relationship over money problems What can you do to preserve your money and by doing so preserve your relationships?

A lean budget with no spending leaks Tips for success Financial Security & Freedom Family meetings Emergency fund Insurance Good documentation A lean budget with no spending leaks Debt free credit cards

MoneyCounts: A Financial Literacy Series Comments and questions 11A Grange Building University Park, PA 16802 financialliteracy.psu.edu finlit@psu.edu 814-863-0214