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When imagining life together, one in four couples identify money and finances as the biggest challenge in their relationship. Wells Fargo Managing Director and Senior Director of Advice Emily Irwin joins Yahoo Finance to discuss red flags to avoid between partners, especially before choosing to share a joint bank account. Masu. This includes each other’s spending habits, neglect of outstanding debts, and even financial secrecy.
“Behaviors like gambling – we just finished Super Bowl weekend – this can be a real indicator of…risk tolerance,” Irwin lists. “Spending some money on whether or not Taylor Swift will be there isn’t a bad idea if you’re spending coffee money. If you’re spending rent money, that’s a problem.”
For more expert insights and the latest market trends, click here to watch the full episode of Yahoo Finance Live.
Editor’s note: This article was written by luke carberry morgan.
video transcript
– More than one in four couples believe money is the biggest challenge in their relationship, according to a recent study from Fidelity Investments. However, there are some warning signs worth thinking about when dealing with financial apathy. I’m talking with Emily Irwin, managing director and senior director of advice at Wells Fargo. Emily, thank you so much for joining us.
We learned that there are some red flags to look out for when thinking about your finances. Can you name a few tops that come to mind?
Emily Irwin: Thank you so much for having me, and Happy Valentine’s Day everyone. Therefore, some of the major red flags we see in relationships include things like financial secrecy. So this is really a red flag that someone is not being transparent about their finances. It may be due to their spending. You may be hiding debts on your balance sheet.
They may not even feel like discussing their career goals with their partner. Another is to take on debt and pretend it doesn’t exist. And not all debt is bad debt. Maybe you’re investing in yourself, taking out student loans, saving up for a big purchase, taking out a mortgage, or driving to work. must be reached.
However, if you don’t have a plan to repay or are just pretending not to repay, that’s a red flag, and it could be gambling. We just finished Super Bowl weekend, which could be a real indicator of your risk tolerance. If you’re going to spend your coffee money, there’s nothing wrong with spending it on whether Taylor Swift is there. If you’re wasting your rent money, that’s a problem. And finally, prioritize wants over needs.
Everyone should prioritize some splurge to maintain their financial goals and good behavior. But if you’re doing it consistently and can’t pay your monthly bills, it becomes a problem.
– So, what Emily brought to my attention is that a potential red flag is gambling and betting. Emily, because they like sports betting and they bet on a lot of people, namely me. So, Emily, red flags, warnings, when exactly is that, is that how much money are you spending? is that so?
Emily Irwin: Actually, it’s not the amount. I would like to think about what to spend on according to my goals. Also, for some, zero may be one, two, three, and it may not matter. If they can support it within their lifestyle and budget, it’s a problem if it affects things like whether you can pay your bills on time. If for some reason it starts to affect your credit score.
If for some reason you can’t share this behavior with your loved ones or even your partner, that’s a red flag. Because it means that you are starting to hide things that not only affect you, but can affect you.Not just your financial situation, but potentially your partner’s as well
– Yeah. Emily, I’m concerned about financial secrets and hiding things from your partner when it comes to money. For example, what advice would you give to someone who doesn’t feel comfortable talking about their credit score with their partner?
Emily Irwin: Yeah. I think it depends on where you are in the relationship. Early on, you can observe behavior, think about how this person interacts with their money, and ask them about their money stories. You can ask about all the things you want to do in a relationship. Tell us about yourself and share your money story and history. Therefore, I encourage them to do the same.
If the relationship is a little more advanced, definitely before you start buying jointly or mixing assets. We want to have really transparent conversations about big things like saving, spending, and debt. How do we check in with each other? Great way, it’s Valentine’s Day. Make your date night somewhere less emotional.
Because you both know you’re going to be a part of the conversation and you know what the topic is, you’re putting yourself in an environment where you can have a more transparent, less emotional conversation. Masu.
– Yes, these are good tips, financial and otherwise. Emily, thank you so much for joining us on the show, we appreciate it.
Emily Irwin: thank you.
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