People looking to start a new relationship on Valentine’s Day or cement an existing one may benefit from asking their partner some questions to make sure they are financially compatible, according to a finance expert.
Chris Henderson, save and pay director at Tesco Bank, said understanding each other’s approach to money can be a “real strength” in a relationship.
He Henderson said: “Finding out what each other does for work tends to be one of the first conversations people have when they start dating.”
But he cautioned that being dishonest about earnings “may catch up with you in future”.
Mr Henderson said honesty about debts as a relationship becomes more serious is also important.
Couples who have joint finances could end up creating a financial association, which appears on credit reports.
Mr Henderson cautioned that if a couple have a joint account, they could each and jointly become liable for paying off debts on the account – and risk any missed or late payment markers on the account being added to both people’s credit reports.
More positively, the extra money from a joint income can boost people’s ability to borrow, which may help with a mortgage.
Mr Henderson said: “If you do have a joint account, or any form of credit, with a spouse, your combined credit history will be considered when you submit your application.”
Couples who are “tying the knot” can also potentially make use of tax allowances, Mr Henderson said.
He also suggested that, as a relationship becomes more serious, couples could discuss their shared financial goals, such as a house deposit, holiday, or building an emergency fund.
Mr Henderson added that a joint savings goal “can be a great incentive to avoid overspending”.
He suggested making use of online budget planners, adding that setting up automatic deposits to a joint savings account could also make savings goals easier.
