Relationships and money: How do they affect each other?

Estimated reading time
 5 min

Learn all about

• Planning for those big moments in a romantic relationship (good or otherwise)
• Different ways you can support your family
• Making your friendships thrive
• Working on your relationship with your money

How relationships really affect your finances

Relationships come in all shapes and sizes. They play a huge role in our lives, and can shape the person we become. Whether you and your partner (or bestie) are a match made in heaven, or your family are like birds of a feather, money and relationships go hand-in-hand.

Luckily, with handy tools and vaulable information, you can have the know-how to navigate these relationships (and the finances involved).
 

Romantic relationships and money: How they work together

Finding ‘the one’ looks different for everyone. Whether you swiped right or met at uni, getting into a romantic relationship can be an exciting time. For some, it’s the beginning of growing a family (one small dog at a time). For others, it’s a chance to settle down on the property ladder with their first home or start living together. Or it might be time to throw a big party to celebrate your love (are those wedding bells we can hear?).

No matter what milestone you and your partner hit, there will almost certainly be a cost or two (or three) involved. Here are some hot tips for staying on top of those costs (and your financial wellbeing):

• Make a budget and try to stick to it (together).
  
• See if you can change your spending habits to save some extra money.
• Make SMART goals about what you both want for your relationship.
• Try to have an honest conversation about money – one of the best ways you can make your relationship blossom.

While things might not always work out, having a support network and the right information can be the guiding light you need during those harder times. We have an easy-to-follow guide about divorce and separation. It’s a good starting point with practical tips and resources you might want to look to in difficult periods.

Read more on moving in with your partner
 

Supporting your family (and finances) through thick and thin

Whether you choose them or are born into one, your family is an important part of your life – especially when it comes to your financial decisions. And there are many different moments where your finances and family relationships might come together.

For example, as your parents get older, they might be vulnerable to things that can impact their financial wellbeing – anything from illness to income changes. But there are different ways you can step in and support your parents (or any older folks in your life) with money management, like:

• Having an honest talk about their financial situation – maybe over tea and biscuits
  
• Making bill paying easier by automating payments
• Considering a power of attorney
• Teaching them how to spot a scam

Another example is wondering what happens to your loved ones when you pass away. It’s an awkward topic to bring up, but estate planning is an important part of supporting those nearest and dearest to you when you’re gone. Simply put, estate planning is when you record what you want to do with your assets after you pass away. An estate plan has legal documents with clear instructions on who gets what, such as a will, or plans for how you want your funeral to go and more. Starting the conversation and planning early is a great way to have peace of mind that your loved ones will be looked after.

Read more on estate planning

Friendships make the heart (and wallet) grow stronger

The friends you make can support you through the ups and downs that life throws at you – both emotionally and financially. That’s why they’re the best.

If you want to move in with your best buds, getting on the same page as your pals about money can make renting and living together more manageable. For example, you and your friends might need to make a budget for everyday things like groceries, bills and rent so you can all agree on how best to manage your finances.

And if you’re planning a holiday extravaganza (or other big experience) with your life-long pal, learning how to budget and manage expenses can make your relationship stronger than ever. If you and your bestie want to start planning your big expense over a glass of wine (or mug of coffee), then check out our easy-to-use savings calculator. This tool can help you work out how much you need to save for your next big adventure.