Why should you budget together?

It amazes me how many families have one person totally responsible for the family finances.  There are so many benefits to working on your budget together.
* The best way to stick to your budget is to make sure that both people feel like they have had input.  Everyone’s concerns and plans for the month need to be heard.  This is a great discussion tool when planning when upcoming larger expenses will happen and even how to save up for them.  There is no motivation to stick to a budget that was forced on you, so get involved.
* A mutually agreed upon budget can help reduce arguments.  If we decide that $100 of our money this month can be spent on clothes, then there shouldn’t be any argument when I go out with the kids and spend $100 on their summer clothes.
* Both people know how much is being spent on what, especially regular items such as utilities, gasoline, and groceries.  This can lead to discussions on how to reduce these regular expenses.  Or, better yet, make it a game to see if you can beat last month or the same time last year.
* In the event someone dies or is sick, the other person needs to know where the finances stand and how to pay the bills.  They need to know if expenses are automatic, paid online, paid by check, or what AND they need to know when bills are due.  If there is online access, they need to know the login information and how to navigate the vendor’s system.
* You should be able to trust your spouse.  However, when only one person manages all the money, it can lead to hiding problems.  These problems need to be dealt with and your spouse needs helped.  These problems could be hiding a gambling addiction, a drinking problem, lying about jobs, shopping addictions, drug habits, and so on.  Just because you both know the status of your finances, doesn’t mean you don’t trust them.  It means that you are partners – “we decide how we spend our money”.
* Lastly, in the event of a divorce, both people need to have the skills to manage their own money.  In many homes, only one person manages everything and the other spouse finds themselves at a loss as to where to start.
As a financial coach, it can be scary the situations that I have seen.  I am really glad that I can help these individuals and couples.  I feel honored that they are allowing me to help them regain control of their finances and have hope once again.  It just saddens me how much people need what I and other financial coaches do.