Financial Transparency with Your Partner

Was speaking to a good mate yesterday.. he claims that him and his wife are happy with eachother emotionally. They both are on decent wages but noted they have an "awkward" tune when it comes to discussing and sharing their independant finances :where they are very discreet with their income, spending and savings etc.

Here are the key points I picked up:

*They split billing responsibilities and variable household expenditures
*He doesn't know how much his wife earns, due to her shift work and additional overtime shifts.
*His wife is not comfortable to disclose and would understate her earnings.
*They aren't open with their savings with each other and attempts to bring this up for future planning hasn't gone well.
*General discomfort in speaking about money and finances in general with each other.

Is this common? Personally me and my partner operate almost on the other side of the fence.. So am wandering what are OzB's thoughts on this, around being financially transparent (income, spending, budgeting/planning, savings) with your lifelong partner?

Poll Options

  • 64
    Yes
  • 791
    No
  • 297
    They need a therapist

Comments

      • -1

        the allowance is purely for your personal fun and spending. It's up to you really what you want to put it towards.
        I love my tech, video games and motorbikes, so alot of it goes towards that.

        Even in terms of clothing, if it's not the bare essentials, like lets say i find some fancy shoes (that i don't need), i'll buy that under my allowance.

        But then the general expenses covers a lot, but especially the essentials.Fuel, standard clothing (clothing you actually need), food, bills etc.

        I hear what you're saying, the person that has a bigger allowance will generally be better groomed, and be able to afford more stuff….but generally that's how the world works. What this mostly does is gives us incentive to work harder and try to earn more, as well be wise with our money. It's more about having our own little guilt-free expense account, if i want i can blow that allowance to the point that the account is at $0, and i don't need to worry about bills being paid.

        We did discuss the idea of splitting the allowance evenly, but then the problem you have there is 1 person is paying for more of the other person's indulgences, in addition to that it gives you less incentive to work harder or seek a job that pays more as you won't be seeing much of that come through to your spending money.

        It should also be noted that right now we share the household chores and responsibilites somewhat evenly. But where we will re-discuss this situation is if we were to have a child, and if someone had to spend more time at home caring for the child, we would then find a way to balance that allowance money as the other person may still be working, but wont officially be getting paid for it.

        In the end people need to have these tough to have conversations with their partners and find that middle ground, it's very rare that you and your partner will be earning the same amount, but in the end you need to do what's best for the relationship, whilst staying financially stable and enjoying life.

        • I hear what you're saying, the person that has a bigger allowance will generally be better groomed, and be able to afford more stuff…

          So you are OK with your wife not being as well-groomed as you

          1 person is paying for more of the other person's indulgences

          Some people like spoiling the people they love.

          but generally that's how the world works.

          This is not the world it is your marriage and the person you love?

          in addition to that it gives you less incentive to work harder

          You are aware that women get paid less no matter how hard they work.

          The overall gender pay gap continued its downward trend for the 2020-21 financial year, pegged at 22.8%, meaning that for every $10 a man earned a woman made about $7.72.

          You sound like a reasonable person but you have designed an unequal relationship. Eventually, your wife may realize she is not well groomed and lacking in indulgences and grow to resent you. Resentment is the death of love. Divorce is far more expensive than an equal allowance.

          https://www.theguardian.com/australia-news/2022/feb/11/women….

          • -3

            @Yola: "So you are OK with your wife not being as well-groomed as you"
            …um, who said anything about a wife? and who said that i earn more than my partner?

            "Some people like spoiling the people they love."
            Yes, and in my relationship, we spoil our loved ones with either acts of affection OR the money from our own allowance…generally, whoever is earning more has more of an allowance and more to spend on the other person. But that doesn't mean the love is any greater, we understand each others situation.

            "This is not the world it is your marriage and the person you love?"
            Yes, and both my loved one and i are aware of the circumstances and are happy with it. In the end, if we are both happy with it, what's wrong with it?

            "You are aware that women get paid less no matter how hard they work."
            Yes, i am aware that in most industries and most like for like roles women are paid less, but like i said earlier, who said anything about wife or woman? Not very good of you to assume that. In addition to that, irrelevant of the gender it doesn't mean the incentive to work harder is lost (which is the whole point of why we do it this way). Whether i'm a guy or girl, or if i'm earning 5 digits or 6 digits, having this scaled allowance method gives us direct incentive to work hard to get us to have more of "me money" whilst still being able to maintain the bills….Otherwise in theory one person in the relationship can decide "Hey i'm just going to work 1 day a week" meanwhile they get to rest assure they will be getting the same allowance. The way we have done it ensures each of us are working hard.

            "but you have designed an unequal relationship."
            Thats simply not true, both my partner and i have agreed this is equal, Both of us are smart enough and neither of us would have agreed to it if we didn't consider it equal. I think what' you're more looking for is an equitable financial relationship, and although an equitable financial relationship certainly has its benefits, it also leaves the flood gates open to be easily taken advantage of, especially if 1 person decides they no longer want to work as hard.

            "your wife may realize she is not well groomed and lacking in indulgences and grow to resent you"
            Again, no mention of wife, But my partner is very well groomed, even better groomed than myself. Neither my partner or myself resent the other (to the best of my knowledge), but i trust that my partner and i are open enough with each other that if we start to feel this way we will bring it up with the other and discuss it. Like how we both came up with the original financial agreement, we are always open to discussion and compromise.

            "Resentment is the death of love. Divorce is far more expensive than an equal allowance."
            This escalated way too quickly. I was literally saying what has worked well in my relationship whilst being completely financially transparent, yet you are here telling me that my method is going to result in my partner resenting me and potential divorce.

            Please don't come to me talking about equality between genders when purely based off of my comment you assume i'm a male with a wife, and also to assume that the wife is earning less than the guy, then to say that my method is going to lead to divorce, go away.

            • +1

              @whitepuma: What's your plan when you have kids? Will your partner get no money while she's home with the baby and unable to work because she isn't contributing financially? And will she continue to get less allowance when she goes back to work even though she sacrificed some of her career growing time to be at home with the baby, and probably will have to accept a lesser paid position when she goes back because she doesn't have recent experience and has to accept something just to get back on the ladder? And what if you decide as a family to move to a location that means you can have a very high paid job, but there isn't much prospect for her (even though all together you end up earning more as a family)? Now does she only get half the spending money even though it isn't her fault she is living somewhere without good prospects for her?

              Allowance money should be equal. Assuming one of you isn't vegetating on the couch you are both doing your best to contribute to the family. Just because one of you managed to get into a higher paying industry doesn't mean they should have a worse lifestyle than the other person and not be able to have things they want if the family finances can afford it. That sounds like the other person is being controlling.

              • -2

                @Quantumcat: Hi Quantumcat. Everything your asking is valid, but its all answered in both of my comments on the 30/06 in terms of what we do in a change in circumstances.
                Also, i've noticed your constantly referring to my partner as she or assuming my partner is going to be having a baby and i'm assuming that you think my partner earns less than me. Please refer to my comment above to Yola. Nowhere did i mention wife, girlfriend, or gender, nowhere did i mention who is the bigger earner in the household either.

                Regarding your comment about allowance should be made equal, please also refer to my comment above to Yola, specicifaclly the response to having designed an unequal relationship.

                The way my partner and i have setup our financials is working really well for both of us, the biggest benefits that we are seeing (that you don't always see when splitting allowance equal) is that we both have drive to excel in our career due to the direct money spending each of us get AND we don't need to worry that our partner will be slacking off and relying on the other partner to carry the weight of both of them due to laziness (as mentioned for illness or pregnancy etc the responses are in my other comments).

                I do understand that this may not work for all people, but it's working really well for both of us, and we are both open with our communication as well as not being ignorant, if one of us has a problem with this setup we are happy to bring it up with the other and we both re-evaluate things. In the end our allowance money is equal, but in a different sense to what you are suggesting, ours is equal in proportion to what we earn & what we bring to the household. Whilst what your suggesting is equality of outcome, which isn't what my partner and i want, You're welcome to do that, but we both personally prefer not to.

  • +3

    My partner and I have a shared bank account, we know each others salaries and can see the income and spending occurring in the accounts at any time. We also know each others superannuation. We have a spreadsheet that shows all our income and expected expenditures for the next 24 months so we can see our financial trajectory as well. We also discuss large expenditures, and my partner knows that Im a deal fanatic (she sees me surfing the waves of OzB too often) so knows that I'm always looking for a great deal on things we need or want to buy. Neither of us also have a habit of blinding just spending on anything. There is complete openness, and where there's openness, there's complete trust. Its our life together, as we are one couple, and our future that we are working towards for our kids, so hiding details on money is really baffling for me, unless someone in the relationship has something to hide, or sees a risk that they're trying to protect themselves against (in which case why a person would be in such a relationship again would baffle me).

    • Agree with this 100%

Login or Join to leave a comment