Facebook Facebook logo Sign up for Facebook to connect with Olivier Rossi Bato | Getty Images
When it comes to money, couples are faced with a big question: combine finances, separate them, or do a combination of the two?
Now, research has found that those who put their money together are more likely to stick together.
The study, titled “Pooling Finances and Relationship Satisfaction,” found that if couples pooled their money it could make or break a relationship. Research focuses on bank accounts and liquid wealth.
“We found that couples who pooled their finances were more likely to separate than couples who kept their finances separate,” said Emily Garbinsky, associate professor of marketing and management communications at Cornell University, Co. -author of the study.
Learn more about personal finance:
2022 will be a banner year for weddings. How to save if you get married
How Merged or Separate Accounts Affect a Couple’s Financial Success
The discussion of how much money the couple should have before marriage
In support of this idea, a CreditCards.com survey found that approximately 43% of married couples, in a civil partnership or living together have joint assets.
Baby boomers are the most likely to have only joint accounts, at 49%, followed by Gen Xers, at 48%, compared to just 31%of Millennials, according to the CreditCards.com survey.
Having joint accounts has benefited all couples, although the effect is stronger in some couples than in others, according to Garbinsky.
Low-income couples, for example, tend to see greater benefits from pooling their money.
This is also true for couples belonging to cultures that are more collectivist than individualistic, based on the differences observed by researchers between Japan and the United States.
The researchers also looked at online discussions about how couples manage money on forums like Quora and Reddit. Those who combine their finances are more likely to say “our money” than those who separate and are more likely to say “my money.”
“These simple pronouns over time reinforce perspectives that are part of a team rather than not part of a team,” Garbinsky said.
The findings coincide with Garbinsky’s other research that finds many couples tend to avoid discussing money, he said.
“Couples admit that they don’t like talking about finances with their partner,” Garbinsky said. “They anticipate conflicts.
“They think that if they talk about their finances, they will quarrel about it.»
However, research shows that communication is a good thing.
Couples who openly talk about money are more likely to be on the same page and better achieve their financial goals, he said.
Those who openly respond to money issues typically manage their debts rather than those who separate them.
“On average, what we see is couples who end up talking about their finances come to some kind of consensus, and then they feel like they’re on the same team,” Garbinsky said.
“The feeling of being part of a team with your partner promotes relationship satisfaction,” she says.
Couples who talk about money are more likely to avoid so-called financial infidelity or withholding information or transactions from their partners. A survey by the National Endowment for Financial Education found that 43% of adults admit to committing some form of financial fraud. Men are more likely than women to admit that they are guilty of such actions.
Financial advisers say that while the way couples handle money tends to vary, communication should always be a priority. Ideally, a formal conversation about money should take place at least once a year, according to Jesse Sell, certified financial planner and managing director at Prevail Financial Planners in Stillwater, Minnesota.
“Money can be a very emotional subject,” Sell said. “It’s important to talk about it regularly, because if it’s not intentional, it’s a bit reserved and not talked about. »