6 Financial Red Flags Your Partner May Have 🚩

1. Secretive About Finances 🚩

One of the most significant financial red flags in a relationship is when your partner is secretive about their financial situation. If your partner avoids discussing their income, expenses, debts, or financial goals, it can indicate a lack of transparency that may lead to problems down the road. Open and honest communication about money is vital for building trust.

How and What to Say

How: Initiate a calm and non-confrontational conversation about your financial concerns. Express your desire for transparency and explain that open communication about finances is essential for a healthy relationship.

What: Whenever confronting someone, use “I” and “we” words, never “you” words. For example, “I feel like I’m out of the loop”, or “I feel insecure about our finances”, not “You’re hiding something from me.” Encourage your partner to share their financial details and offer to do the same, creating an environment of mutual trust. 🤝

2. Consistently Overspending 🚩

Do you have a partner who thinks that money grows on trees? They love to splurge, shop, and spend, regardless of budget or practicality. If your partner frequently spends beyond their means and accumulates credit card debt, it can be a red flag that they lack financial discipline. Overspending can strain a relationship and jeopardize long-term financial security.

How and What to Say

How: Start by discussing your joint financial goals and creating a cash-plan that outlines your monthly expenses and savings targets. Here’s a 7 step guide on how to speak to your partner if they are spending more than you.

What: Encourage your partner to stick to the plan and find ways to limit excessive spending. Ask them “Do you have any long term-goals with your money? Is the goal to be able to spend freely?”

3. High Levels of Debt  🚩

Lots of us have student loans, and that isn’t necessarily a red flag. But, if your partner is struggling with a mountain of debt and doesn't have a clear plan to pay it off, it can be a source of stress and anxiety in your relationship. A significant amount of spending-related debt, especially high-interest debt like credit card balances, can be a major financial red flag.

How and What to Say

How: Discuss your partner's debt situation with empathy and understanding. It happens to the best of us.

What: Say, “debt is super annoying, so maybe it’ll help your anxiety around it to make a plan.” Encourage them to create a debt repayment plan and explore options for consolidating or refinancing the debt to reduce interest costs. Support them in taking steps to become debt-free and work together on a financial strategy.

4. Poor Credit History 🚩

A poor credit score can be indicative of a pattern of financial irresponsibility. A low credit score may make it difficult to secure loans or favorable interest rates, affecting your joint financial goals such as buying a house or a car. As a bonus, having a good credit score could be great for your dating life, like it was for these women.

How and What to Say

How: Start by having an open conversation about your partner's credit history.

What: Say, “I don’t want our credit situation to block us from being able to get a car or apartment, so maybe we can work on our credit together.” Encourage them to check their credit report and work on improving their score. You can offer guidance on responsible credit usage and help them establish a plan to boost their creditworthiness over time.

5. Lack of Long-Term Financial Goals 🚩

Having no clear financial goals or plans for the future can be a red flag. It's essential to work as a team and ensure you're both aligned when it comes to saving for retirement, buying a home, or planning for other significant life events.

How and What to Say

‍How: Initiate a conversation about your long-term financial goals and dreams as a couple. Develop a financial plan that outlines the steps needed to achieve these goals. Encourage your partner to actively participate in goal setting and financial planning to ensure you're on the same page.

What: Say, “Do you have any big financial goals you want to reach? I want us to be on the same page and feel like we’re working on it together, because it’ll help us get there faster.”

6. They Make You Pay for Everything 🚩

If you find yourself constantly footing the bill and your partner rarely contributes financially, it could strain the relationship and create an imbalance. A partnership involves shared responsibilities, including financial ones.

How and What to Say

How: Encourage open communication, set clear expectations, and establish shared financial goals collaboratively. Seek professional advice if needed for a stronger, balanced relationship.

What: Start by expressing your concern; "I've noticed I'm covering most expenses, and it's overwhelming for me. Let's discuss how we can create a more balanced approach to our finances together."

The Bottom Line.

Addressing financial red flags in a relationship is essential for building a strong foundation of trust and security. By openly discussing these issues with your partner, you can work together to create a healthier and more stable financial future. Remember that successful relationships involve compromise, understanding, and support, and addressing financial concerns is a vital part of that journey. Also, if you are successful at building a partnership, you can actually move even further in your financial journey with your partner than you ever could alone.

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