In the News: For the Love of Money
Those wilted flowers and almost empty boxes of chocolates can only mean one thing: Valentine’s Day was last week. According to some estimates, as many as 200,000 couples across the United States choose this date to become engaged. Congrats to all the lovebirds out there!
But before these happy couples tie the knot, they’ll need to make sure they’re on the same page when it comes to their finances – otherwise, problems will likely arise.
A timely Chicago Tribune article on this topic cited an AICPA survey showing that 27 percent of couples married or living together said money issues were likely to lead to an argument. In fact, money issues are more likely to cause an argument than topics on children, chores or work.
Tracy Stewart of the AICPA’s National Financial Literacy Commission stresses that a primary reason behind these types of arguments is a lack of communication.
"Communication is hugely important. If you can communicate effectively about money, there's less chance of a misunderstanding, or at least you may understand where the other person is coming from,” said Stewart.
As the article states, there is no one right way of having the conversation. But keep this in mind: there is no one perfect way of managing finances either. Money habits and financial circumstances are as unique as relationships themselves.
Moving from one life milestone to another, personal finance coorespondent Sharon Epperson, on a recent Today Show Money segment (video below), advises a viewer who is attempting to figure out how to get the most money back on her family’s taxes. The viewer and her husband had previously always used the short form with standard deductions, but because they had a child this year they aren’t sure if itemizing deductions would save them tax dollars.
Epperson informs the couple that they’re eligible for a tax exemption of $3,800, which applies regardless if a family or individual elects to itemize or use the standard deduction.
James Schiavone, AICPA Staff.