Money tips to avoid arguments about couples’ finances

Money arguments are stressing relationships, with younger people affected most. Here are ways to ease the strain.

Arguments about money are putting extra strain on relationships – and young couples are fighting about finances the most.

New research by Compare the Market has found a quarter of Australians have argued with their partner about money issues in the past three months – but for people aged 18-to-24 it jumps to 50 per cent.

Just 8 per cent of over-65s and 19 per cent of 55-to-64-year-olds have clashed over finances, according to the survey of 1500 people, while other adult age groups are within the 30-36 per cent range.

Compare the Market spokeswoman Sarah Orr says wage stagnation has been an issue during the pandemic amid workplace lockdowns, particularly for part-time workers.

“Tensions have been high over the past year, particularly for young people who have been growing concerned about their future post-pandemic,” she says.

“Budgeting doesn’t come naturally to everyone.”

Orr says people wanting to avoid money fights should:

• Not hide purchases from their partner.

• Talk about money when things are going well, so you can put in place plans for tougher times.

• Discuss what you want to achieve financially over the long term.

• Listen and be open to feedback from your partner.

There are techniques to ensure discussions over money don’t become arguments, experts say.

“If your partner thinks you’re overspending, you might want to stop and think twice about your purchases,” she says.

“Be aware of your biases, and know you may not always be right.”

Rising Tide Financial director Matt Hale says younger couples often discuss their finances “in emotive circumstances, and as they’re learning each other’s money habits”.

Hale says people’s personal money habits evolve, and blending yours with another person’s takes time.

He says communication is vital but money discussions should only take place “when things are calm”.

“Not when you’ve just got your car registration or licence renewal or on a Sunday morning after 10 pints.”

The Compare the Market research also found about half of Australians had cut back on spending to pay bills in the past three months, and one in five said they could not afford a $500 demand if it arrived today.

Young adults are more than twice as likely to worry about money than older generations, it found

“It’s been a difficult year, but as Australia reopens, things are looking brighter,” Orr says.

“Demand for skills could improve bargaining power, drive up salaries and create better opportunities for young people.”