Managing conversations about money

9 tips to manage conversations about money

1. Don’t avoid the topic of money

The first step sounds obvious but is often a struggle for many - it’s to keep talking to each other about your finances, especially when times are hard.

Most couples avoid these conversations because they bring up strong emotions, which can get in the way of finding solutions.

Ignoring conversations about your finances won’t solve any issues though or help you to plan for the future.

2. Be aware of different experiences

Before discussing money with your partner, think about each of your individual experiences. 

How our families managed and talked about money when we were young often affects how we think about and manage our finances as adults.

With that in mind, approach any conversation with empathy and understanding.

3. Agree on a time to talk

Don’t start financial conversations during an argument or when one person is frustrated about money. This can lead to more conflict or blaming each other.

Instead, agree on a time that suits you both and come prepared to have a calm and productive conversation.

You could even set a goal for the conversation e.g. ‘By the end of our conversation we will have a budget drawn up.’

4. Prioritise needs and set goals 

If the increased cost of living is impacting your family’s financial situation, it’s a good time to re-evaluate your expenses, prioritise what’s important, and set achievable goals which you both contribute to and agree on.

This might mean making decisions about:

• ways to reduce expenses
• trying money-saving activities such as meal planning and buying less takeaway
• tracking your spending
• using credit cards less to save on interest repayments.
  
  

5. Be flexible

The changes you make to your family’s budget may be short or long-term depending on your specific needs. Keep re-assessing your situation and aim to be realistic and flexible. This will help you to secure the financial health of your family.

6. Avoid the 'blame game'

It’s easy to get frustrated when you and your partner disagree about money, but blaming one person for your family’s financial stress won’t change or solve anything.

When discussing your shared priorities and goals, try to focus on the numbers (your finances) and talk about how you each feel about money. It's important for both people to be involved in the discussion and have a chance to both speak and be listened to. 

7. Be a team

Think about the language you use when discussing money and try to use shared terms such as ‘our money’ rather than ‘your money’ and ‘my money’. Encourage and support each other, including during the more difficult or stressful financial times.

8. Budget, budget, budget

When developing a budget, clarify what you’re choosing to prioritise and sacrifice, and discuss any concerns and hesitations you have. Be clear about why a budget is needed and commit together to this new way of spending money.

Once you both agree on a budget, stick to it, and set a time in the future to review how you’re tracking and make changes if needed.

9. Get financial help if needed

There are a range of services and online resources that can help you with your finances.

• Services Australia provides online resources to help you manage your money and a free financial information service. Visit servicesaustralia.gov.au/manage-your-money 
• Moneysmart provides information and resources to help you manage money, reduce debt, plan for your future and grow your wealth. Visit moneysmart.gov.au
• The National Debt Helpline provides free resources and advice on how to manage your debts. Call 1800 007 007 or visit ndh.org.au
• Gambling Help Online provides free online or telephone support for people affected by gambling. Call 1800 858 858 or visit gamblinghelponline.org.au

This blog post should not be considered professional advice. It is for informational purposes only.