In any relationship it can help when both partners are financially compatible, and the couple can have regular honest conversations about money. Doing so can uncover potential money-related issues that, if left unaddressed, can create resentment, stress, and even fights down the road.
This article will cover some of the most critical financial red flags to watch out for.
1. Refusing to Discuss Money
Partners need to be transparent about money with each other. If one partner refuses to discuss money or share their financial situation, it could be a sign of deeper issues.
One partner may be afraid of feeling judged by the other partner for what they perceive as poor personal financial management. They may feel shame or guilt as a result.
For example, imagine you want a wedding loan to afford your dream wedding. However, your partner doesn’t know much about loans and debt and had bad experiences in the past. They may avoid the topic entirely. This may make it harder to get the loan together, leading to disagreements later.
Refusing to talk about money could also signify a control issue. One partner may want complete control over the money in the relationship.
No matter why one partner refuses to discuss money, this lack of transparency may cause more significant problems later. Partners should encourage each other to be honest about money and take a non-judgmental approach.
2. Overspending
There is nothing wrong with spending discretionary funds on travel, entertainment, or luxuries.
However, if someone consistently lives beyond their means, that could indicate they are not good at managing their money or leaning heavily on debt.
Overspending is relative since someone with a higher income may spend more on luxury items or entertainment. That said, it can harm relationships if it occurs.
Here are a few signs of potential overspending:
Impulse buying
High credit card debt or consistently carrying a balance
Falling behind on bills
3. Borrowing Money and Not Repaying It
Couples often lend each other money, but one partner repeatedly borrowing without repaying could indicate financial irresponsibility. It could also mean the borrower doesn’t respect their partner’s boundaries. In either case, this can strain relationships.
Here are some signs that your partner might not be taking their borrowing seriously:
Avoiding the topic: Your partner might dodge or downplay the issue.
Excuses: Constant excuses indicate your partner is not prioritizing their debt.
Lack of planning: Lacking a plan could show that your partner is not prioritizing repaying you the loan.
Partners should treat loans seriously, setting terms and expectations. This will help protect the relationship and prevent resentment or other issues from building.
4. No Long-term Financial Goals
Nearly every couple should have long-term financial goals, even if the exact goals and dollar amounts differ between partners.
If your partner has none, they may not have direction in their career and life. It can also show a lack of willingness to take responsibility for their financial future.
Regardless, building a stable future as a couple will be much more difficult if your partner doesn’t have long-term financial goals in mind. It’s important to discuss these goals and find a middle ground that meets both of your needs.
The Bottom Line
It can be tough to have money conversations with your partner. However, ignoring financial red flags now can strain or destroy your relationship down the road. It can help to know the warning signs and address them as soon as possible.
Lack of communication about money, overspending, borrowing money without repaying, and having no long-term financial goals are some of the biggest red flags to watch out for. If you notice any of these, approach the topic non-judgmentally as soon as possible. The sooner you handle the conversation, the easier it may be to resolve it.
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