When you first meet someone and are going on a few dates, money probably is not the first thing you talk about.
I get it - there's a time and place for everything, but you shouldn't push it off too long, especially if you are serious about someone. Their habits now could be a warning for how they spend in the future.
So, it is good to be aware of the financial "red flags" so you can protect your money.
"Not having an emergency fund, not paying bills on time, carrying too much credit card debt are all examples of red flags that could come up," said Aashish Matani.
Aashish Matani is a managing director with Merrill Lynch Private Wealth Management.
We talked about all things love and money and the 2023 survey Bank of America did about consumer savings and spending behaviors.
They found that money is top of mind for hopeful couples.
"It seems like not paying bills on time, or in full, was where the respondents put the most focus with 60% saying that would be a red flag for them," said Matani.
That was followed by forgetting to pay you back, not budgeting, and not having an emergency fund.
While people are worried about these things, they do not often call them out head-on.
"42% of [people who took the survey], said that they were uncomfortable talking about finances with their romantic partner," he said.
Not talking with a partner, or potential partner, about finances could cause issues down the road.
"As wealth increases, the complexities can increase," said Matani.
Hitting financial hardships can also cause tension and trouble in a relationship.
So, if you are looking for love this year, consider watching out for these things and know you are not the only one.
"It's normal - you just have to find the right time in the right place. But it is important to have those discussions," he said.
And if you do want to broach the conversation, Matani shared the following advice:
- Be upfront about your issues and approach it with a little grace
- Understand that you are not the only person who feels this way
- Have the discussion even if it is uncomfortable
- Take inventory of how you spend and save and make changes for yourself before asking someone else to do that too.
If you have had any financial issues with a romantic partner or believe you have been taken advantage of let the Problem Solvers know by emailing problemsolvers@wtkr.com.
