MONEY TALKS

Get closer to financial security

Regardless of your relationship status—single, married, divorced, etc.—having awareness and being a part of your financial decision-making and planning processes will give you a sense of control, confidence and peace of mind. You may not need to be in the driver’s seat all the time, but it’s important to be cognizant of where your money’s going. Relationships can evolve, with changes either quick and sudden or slow and gradual. Don’t forget that you’re always in a relationship with yourself, and consider these steps to ensure you’re feeling financially secure. 1 Day-to-day finances

Whether you’re single or partnered up, it’s crucial to understand and interact with your money. You may be thinking that you interact with your money every day when you spend it, but do you actually know where each and every cent is going? Are your finances organized? Does your budget balance? Are you putting money aside for rainy days, your goals and your future? It can be easy to let your spouse or partner take care of these things—maybe they like being in charge of the cash, or boast great financial skills, or you’re not keen on taking the lead. However, the consequences of not being involved in at least a part of financial planning and decision-making can be devastating if your relationship ends. It’s still your money and your life, so our advice is to get on board.

2 Credit

There are many myths that exist in Canada around credit. One of the most prevalent ones is that joint credit builds both partners’ credit score. This isn’t true. If you have joint credit/debt, the person who is primary on the contract will be the one whose credit report is updated. Your credit report and credit score are yours alone. You do not share them with anyone. So if your partner has all joint credit products in their name, you will not benefit from any positive reporting; however, if the relationship dissolves, you will still be required to pay debt on joint accounts. Furthermore, if you have no credit only in your name, creditors will have limited information to use to approve you for any additional credit (e.g., mortgage, loan, etc.) if you need it in the future.

3 Investing

Consider what you want for your future, especially in terms of retirement. Do you want to travel, start a business, enjoy new hobbies, and/ or spend time with family? Create a vision for this, and if you’re in a relationship, make your intentions clear to your partner. Once you know what you want, start engaging with your numbers and make your retirement goals a part of your financial plan. What would it take to financially achieve your goal? What do you need to do between now and retirement to get there? Reaching out to a financial planner to discuss your retirement goals is a great option if you need help getting on track.