How couples make financial decisions

Have you ever noticed that couples aren’t always on the same page financially?  They often make financial decisions in different ways.

It’s important to understand what criteria matters to each spouse when making decisions about money and investing.

Use the following list of decision making styles to help couples identify what style they relate to the most.

Time frame

Short-term  – How can we make the most money now.

Long-term – How can we make the most money over the long-run.

Motivation

Reward motivated – Focused on achieving goals and identifying opportunities.

Risk motivated – Focused on avoiding problems and indentifying ways to be prepared and protected.

Information preference

Big picture – Want key criteria and prefer a faster decision making process.

Details –Want more information and prefer a more thorough decision making process.

Money belief base

Scarcity – You get ahead by saving, focus on under-spending, postpone desires, reduce expenses.

Abundance – You get ahead by earning/investing, focus on spending, achieve desires now, increase rate of return.

Choosing a financial professional – what matters most

Trust – The most important thing is the relationship.

Credentials – The most important thing is the process.

Not everyone falls neatly into each bucket, but financial professionals can use this list to help couples better understand their financial decision making styles and have more productive discussions about planning their financial future.