Budget Meetings: Why Couples Need to Talk Money

Going into the new year, many couples plan to take better control of their budgets and spending.

The main goal for creating a budget in the first place is to know exactly how much money is available after the bills are paid. The remaining amount can then be allocated to other spending, saving or investing. Having a clear plan for every dollar can help knock out debts, plan for a large purchase and save for the future.

Whether you are saving for a wedding, saving for a home, trying to payoff debts or just trying to make extra room in your tight budget, budget meetings are a necessity to keep each other on track.

Review and Understand the Budget

It is so important that there is not just one partner who looks over the budget. Whether you keep a paper budget or a spreadsheet, bring it to the table and go over it in detail.

This applies whether the budget is for a shared accounts or separate finances. Even with separate bank accounts, it is important to be honest and transparent to one another. The focus here is less on sharing the bills and criticizing spending habits and more on sharing a vision for your financial future.

Some of the things to discuss include:

• The average income each month
• The total expenses for the monthly bills
• The amount left after the regular bills are paid
• Other regular expenses — grocery, eating out, gas, activities, etc.
• Previous months spending — taking note of any areas for improvement
• Any big expenses coming up — vacations, vehicle registrations, holidays, events, etc.

Set a Goal for Your Budget

Are you saving for something? Are you trying to pay off debts? You must agree on your financial goals or it will be impossible to stay on track.

Take time to talk about the future and where you hope to be 3 years down the road. I know a 5 year plan is typical, but so many things can change in one year, let alone 5. It may even be more tangible to discuss where you would like to be one year from now.

However far into the future you prefer to plan for, just make sure your plans for your money line up with your partner’s. If one of you would like to save for a house and the other would like to travel more, try to come to an agreement. Buy a house, then travel. Take small vacations so you can still set aside money for the house. The important thing is to be clear and in agreement.

Determine the sacrifices or improvements that need to be made in order to achieve the goals. It may be something as simple as packing a lunch for work everyday or something more drastic like trading in a car for something without a payment. 

Hold Each Other Accountable

A family budget cannot be successful if only one person is keeping the other in check. 

Use those goals and future plans as a reminder to check in with each other regularly regarding spending. It is not about receiving permission to spend, but rather getting a reminder of the reason for the budget. That is why goal setting is so important. No clear goal, no motivation to hold each other accountable.

Regular Budget Meetings

Budget meetings can happen as often as needed — weekly, biweekly, monthly. This is a time to sit together and discuss topics related to your budget and financial goals exclusively.

• Note any bills coming up that are different than usual
• Walk through cash envelopes if using this method, to see how much is left in each category.
• Determine if the amounts budgeted are adequate or if they need to be adjusted and how to make those adjustments.
• Review outstanding debt balances and payoff plan
• Review sinking funds or savings to see your progress and make adjustments if necessary.

Living on a budget together can sometimes become the source of stress for one or both people. Be each others cheerleader when necessary. Be each others supervisor when you need to be. But always remember, you are in it together and you will feel so good knowing you worked as a team to achieve your financial goals in the end.