This post is on different styles of money management in marriage.
Personally, I believe managing finances in a marriage is very much like running a business. Just that, it is a life-long business with two main business partners, the husband and the wife.
From my readings and observations, there are 4 main different styles of money management in marriage. And we shall address the person who manages the money in marriage as Chief Financial Officer or CFO.
Further sharing is below.
Four different styles of money management in marriage
These are the main different styles of money management in marriage:
1. The husband is the CFO
This is very common, especially in eastern culture. The husbands are regarded as the head of the family and thus automatically carry the CFO title.
He brings money home, plans all the spending, investment and makes all financial decisions.
This style is usually practised when the husband is the sole breadwinner in the family.
2. The wife is the CFO
There are women who are really good at managing finances. Even there are men who bring home money and give all his money to his stay-at-home wife.
And these husbands also give full authority to his wife to do all financial decisions.
3. Both husband and wife are CFOs
When both husband and wife are working and bringing home money, it is fair that both contribute to the CFO positions.
So, both must list down all financial related matters such as:
- the spending plan
- loan repayments
- investments and savings
- insurance and protection
- retirement planning
- children education funds
Then, they divide these tasks accordingly.
Both are given authority on their agreed tasks and are responsible for their tasks. Even better when both agree to discuss before making their financial decisions.
4. Husband and wife take the turn to be the CFO
Other than the above, there’s another money management style in a marriage, which I find more creative is both take turn to be the CFO.
It might sound funny or impossible. But, I think it is creative and fun.
Even CFO in a company also has a renewal term right?
So, in marriage, if a partner can’t prove that he or she can manage the finances well, it is time to pass the cheque books to the other partner.
Perhaps, one might not aware that he or she is good at managing finances until he or she is given the opportunity. It is good to practise to allow a few years for each partner to take the turn to be the CFO.
Final thoughts
So, who’s the CFO in your marriage?
Be it you or your partner or both of you together, make sure that both of you do not let money become an issue in your marriage.
Lastly, you might be interested to read my sharing on 5 secrets for a financially happy marriage.
