By Jasmin Brown - Licensed Insolvency Trustee

BDO First Call Debt Solutions

Why It’s a Good Idea to Set Savings Goals Together

Nov 18, 2019 | 11:26 AM

O You may or may not be surprised to know that a lot of Canadians don’t talk to their significant other about money. Over one-third rarely or never discuss finances with their partner.

And yet, most couples have dreams that require saving. Perhaps it is an annual winter trip to a warmer climate or a larger home. They may want to cover post-secondary costs for their children or plan a secure retirement for themselves. If you have goals for yourself and your partner, talking about money and working towards your goals together is important.

Setting goals together matters

Think of financial goals as a path or roadmap to what you want to achieve. You need to have a plan to get where you want to go. Goals help you prepare for bumps in the road, plan for contingencies, develop realistic timelines and decrease risk and disappointment.

But, let’s face it, it’s going to be difficult to create financial goals with your significant other if you aren’t communicating. Are you less than upfront about your debt problems? Do you wish you could change a few of your spouse’s unhealthy spending habits? If you feel frustrated by your partner’s money management and think it’s keeping you from reaching your goals, communicate your concerns and develop a plan to reach mutual goals together.

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Keep the lines of communication open

Regular lack of communication can quickly sabotage your efforts. Talk openly with your partner about your priorities and listen to theirs. Discuss how you can each alter your behaviour to get what you want. If you feel uncomfortable talking about money, remember to be patient. It can take time to build a dialogue.

The money talk: how to start working as a team

It may not seem entirely romantic to talk about financial goals, but it can decrease the likelihood of arguments about money and ensure you are both on the same page. Here are a few pointers:

1. Make it a date. Set some time aside, without distractions, for an honest financial discussion. How often you do this depends on your financial situation. It may be weekly, monthly or quarterly.

2. Do the math. Whether you are saving for the short term or long term, you must first know how much you can afford to put aside. Financial advisors recommend anywhere from 10 to 20 per cent each month. Whether you can put aside less or more than this guideline, the point is to do what is best for you and your budget.

3. Categorize your goals. When you consider all the things you want to achieve as a couple or family, the list can seem daunting. Try splitting your savings goals into three categories: short, medium and long-term.

Short-term goals can include purchasing a computer or putting extra funds aside to pay off a small loan. An example of a medium-term goal could be saving for a new car. Long-term goals include retirement or estate planning.

4. Make a plan. What’s your savings strategy? Talk about what will work best for both of you. As I mentioned in a previous article about budgeting, setting up regular automatic deductions from your paycheque guarantees that you are paying yourself first.

5. Check in regularly. Financial circumstances inevitably change for all of us at different points in our lives, so it is important to regularly review your savings goals. An unexpected expense or financial emergency may mean you have to adjust your expectations. A raise in pay or an inheritance may allow you to contribute more than you expected.

There will always be savings decisions to be made and financial challenges on the horizon. That’s why it’s important to make time now to schedule regular money talks.

The more you talk, the fewer surprises and disappointments you are likely to encounter. Open up the lines of financial communication with your partner and start turning your dreams into concrete goals.

The Financial Consumer Agency of Canada (FCAC) has a terrific Financial Goal Calculator that can help you and your partner manage your debt and savings goals.

Do you and your significant other set savings goals? Tell us what works for you on Twitter and Facebook using the Financial Literacy Month hashtag #FLM2019.

BDO First Call Debt Solutions 147-15^th Street East Prince Albert S6V 1G1
Phone: (306) 765-3328 or 1-855-220-1705
Jasmin Calyniuk Senior Vice President, LIT

Jasmin is a Senior Vice President with BDO and works out of the Saskatoon office.

Jasmin received a Bachelor of Arts in Spanish, a Bachelor of Commerce in Accounting and a Masters of Professional Accounting from the University of Saskatchewan.

Jasmin is a Chartered Professional Accountant, a Licensed Insolvency Trustee and a Chartered Insolvency and Restructuring Professional