Do you bring your partner on board for financial decisions?

One spouse does the gardening and rakes the leaves. The other takes the car in for repairs. It’s common for each spouse to become responsible for specific roles. That’s usually a good thing, but not when it comes to financial matters.

Here’s why you’re better off when both spouses are involved in the couple’s financial life.

Achieve goals successfully

When making financial decisions, a second opinion often helps. For example, one spouse receives an annual bonus and wants to buy a large-screen television and home theatre. But the other spouse does a reality check – that money should be going to education savings. Making decisions together can help keep financial goals on track.

Prevent conflicts over money

If one spouse solely makes all financial decisions, trouble may await if the other disagrees. Say the spouse in charge decides to co-sign their brother’s loan, but the other spouse questions that commitment. It’s a conflict that could likely have been avoided if the couple had discussed the matter beforehand.

Benefit from compromise

Some decisions regarding investing, budgeting or other financial matters are best reached through compromise. Perhaps one spouse wants an emergency fund that covers six months of living expenses. The other spouse believes that money should be invested. They arrive at a compromise, using a high-interest savings account to build an emergency fund covering three months of expenses.