When you're deciding to move in together, talking about finances might not seem romantic, but it's crucial for a lasting relationship.
Discussing your money habits and budgets early on can lay a solid foundation for your future together. The decision to cohabit often sneaks up on us—one sleepover turns into another, your belongings blend, and suddenly sharing a home seems like the next logical step.
Before you know it, you’re legally a couple, but the transition from casual to serious might have happened without a clear discussion.
That’s why addressing financial matters is important as your relationship strengthens.
Plan for the practical – yours, mine, ours.
A great starting point is to determine how you'll manage your finances together.
Some couples keep their finances separate, only combining funds for shared expenses like rent or bills. Others prefer a joint account where both contribute towards household costs while maintaining separate accounts for personal spending on hobbies and other interests.
Having this initial conversation allows both of you to share what you want and allows you to decide on a system that works best for you and your partner.
Split financial responsibilities.
It’s common for one person in the relationship to be better at managing bills than the other. If you’re comfortable taking on this role, and your partner agrees, make a note of payment methods and dates and where possible. You could also schedule and manage ongoing payments via our app or Online Banking to ease the load.
Another suggestion would be to set up a joint account or credit card to manage bills. If you both regularly transfer money into this account or card, it can be a great way to simplify managing shared expenses and prevent disputes about who paid what.
Create a household budget.
Regardless of your financial arrangement, drafting a household budget is essential. It helps you both to manage debt, save, and stay within your means.
A budget can also reduce conflicts by showing exactly how much you have for bills and loan repayments, and how much you have left over each week, month or year for personal spending.
Tip: Use our simple and easy budget planner to get an understanding of what your income and expenses are, and what you have left over.
Being recognised financially as a ‘couple’.
It’s one thing to have your friends and family regard you as a couple, it’s a very different step altogether to have a legally binding financial commitment together. That’s exactly what can happen when you rent a place together – or take a far bigger plunge and purchase a property as joint owners.
Many couples choose to rent a home before buying a place, and that can be the starting point of officially combining your financial resources. It can also provide an early taste of what it means to share ‘joint and several’ liability for something. In other words, if one party can’t (or won’t) pay their share, the other person is expected to pay the full amount owing.
This makes it sensible to work out how you will each pay your fair share, and have a back-up plan for what happens if you suddenly have to pay all the rent or mortgage yourself.
Maintaining your financial independence.
Keeping a separate savings account and credit card helps preserve your financial identity. This can be beneficial if the relationship ends and you need to apply for credit independently.
Importantly, stay connected with the household finances so you’re not in the dark about where the money is going.
Like to learn more?
Read some more of our blog articles about how to manage your money and get ahead. If you’d like to discuss ways to open and set up your accounts, talk to our team by calling our Contact Centre on 1800 033 139 or visit your local branch.
Important note: This information is of a general nature and is not intended to be relied on by you as advice in any particular matter. You should contact us at Defence Bank to discuss how this information may apply to your circumstances.
