I have a degree in Finance. I think in terms of returns, present vs. future value of money, APR, etc. I say that putting your money into a fund that pays 7% APR is much smarter than paying off your mortgage with a 3% APR. Your money is 4% ahead by saving it! That makes great financial sense, right? It took me while, however, to see the real savings of shopping with a store rewards program.
Beth has a degree in Engineering. She sees the world in terms of outlines, flow charts, and efficiency. She keeps an impeccably organized coupon book, shops solely from lists, and saves pennies wherever she can. One look at her 401(k) statement, though, and she was totally lost!
The great thing about our financial relationship. We both bring so much to the table and we teach each about various approaches. We do not always agree with one another, but we surely open up the conversation, leading us to take a balanced approach to our financial lives.
According to a recent post on Time.com, women have traditionally learned how to stretch a dollar, but have largely been excluded from partaking in financial planning. With more than a third of American women now serving as the primary breadwinner for the family, it is high time for women to get involved in the conversation. I have seen the effects when women just stick their heads in the sand. My grandmother had that issue several years ago when my grandfather got very ill. If both had been involved in making those financial decisions, she would have seen the slide and would have been able to step in before it got too bad.
Now ladies, this doesn’t mean that you now get to be in charge of all of the financial decisions. What happens when you get sick and your husband has to take over. Marriage is a partnership. Both of you have to live with the decisions that you make, so both of you should be involved in making them. So what happens if neither of you are educated in finance or have learned to stretch a dollar? Just like with any difficulties in life, when things get tough, ask for help! You can always ask your parents (that really makes them feel needed) or you could seek out a financial professional.
Did you know that financial stress is one of the top causes of divorce in this country? How is your financial relationship with your spouse? Are you financial partners? Do you seek help when it gets to be too much? Leave us a comment and let us know how you cope.
This is great advice. I am very uncomfortable talking about money and have traditionally left the budgeting to my husband, but this year I really took control of our finances. I drafted a budget and I know where every penny of our income goes. It’s very empowering!