Ah love… it’s a beautiful thing, but sometimes finances and money worries can get in the way. In fact, 84% of respondents in a Money Magazine survey said that money was the source of marital tensions with disagreements about financial priorities topping the list of problems (1). So, how should one manage money and love?
Here are a few insights to help you keep those love lights burning and your pocketbooks full without the added strain.
The world of finances can be complex – TFSAs, RRSPs, RESPs, registered vs. non-registered – it’s a lot and it’s easy to get lost in those day-to-day decisions that shape your financial future. In most households, it’s common for there to be one person who is "in charge" or more involved in the family finances. And that is just fine, but too often this leads to a lack of communication, which is never a good thing. The outcome is that only the one person can answer critical questions like “what comes in every month vs. what needs to come out to support the lifestyle”, “which account types allow for a beneficiary”, “what are the tax consequences of withdrawals from different accounts” or “what happens if I pass away without a will”? Life is busy, but it’s important to set some time aside for an annual review with your partner to discuss the important financial matters that will set you up for success in the future!
Money matters can get intricate, so do yourself a solid and get expert advice. Consider working with a financial planner, one that will provide some clarity for your financial future. The earlier you and your partner are able to identify key financial priorities, the better! It really just depends on your needs and stage of life – are you preparing for your retirement, to purchase your first home, pay down debts, invest, send your kids to school? It’s a lot to consider, but a good start is to for you and your partner to each list your financial goals (separately), then work with a planning professional to identify the key goals to action now versus which can be deferred to another time.
Much like a home, a financial plan requires a foundation – this is where risk management comes into play. You need to understand your financial risks and where your vulnerabilities lie. Imagine spending hours putting a solid plan into place, starting on your financial path, only to discover that you or your partner have a critical illness to confront or worse. It’s simply unimaginable, but you DO have to imagine it and then actively prepare for this situation with a contingency plan. There are a number of excellent financial vehicles to protect you from such unexpected risk!
It goes without saying that you can accumulate wealth with systematic savings. That being said, it’s not always that simple. Take the time to educate yourself on how to save, where to save and when to save. Here are a few quick tips:
1. Identify your time horizon - when do you plan to use these funds?
2. Pay yourself first – don’t count on haphazard deposits to save; instead, put a systematic savings regime in place to get you to your goal!

3. Taxes – definitely something to keep in mind. What type of account best suits your savings goal?
4. Grants, bonds, and special benefits – there are many plans that can help you optimize your financial goals. For example, if you’re saving for your children's education, it's a good idea to invest in an RESP which provides "free" money in the form of contribution-matching up to a certain limit. Another example is if you’re buying a new home while looking to save for retirement; investing in an RRSP will allow you to access $35,000 via a first time homebuyer’s loan program. You have options!
Love and money – we need them both, but sometimes it’s difficult to keep them apart. We hope we’ve provided you with some useful tips here to avoid the strains of love and money – now go and give your loved one a hug!
References
1. CNN.
Money? Sex? What couples are fighting about. CNN Money. n.d.
Source: Charts are sourced to Bloomberg L.P. and Purpose Investments Inc.
The contents of this publication were researched, written and produced by Purpose Investments Inc. and are used by Echelon Wealth Partners Inc. for information purposes only.
This report is authored by Craig Basinger, Chief Market Strategist, Purpose Investments Inc.
Disclaimers
Echelon Wealth Partners Inc.
The opinions expressed in this report are the opinions of the author and readers should not assume they reflect the opinions or recommendations of Echelon Wealth Partners Inc. or its affiliates. Assumptions, opinions and estimates constitute the author's judgment as of the date of this material and are subject to change without notice. We do not warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. The comments contained herein are general in nature and are not intended to be, nor should be construed to be, legal or tax advice to any particular individual. Accordingly, individuals should consult their own legal or tax advisors for advice with respect to the tax consequences to them.
Purpose Investments Inc.
Purpose Investments Inc. is a registered securities entity. Commissions, trailing commissions, management fees and expenses all may be associated with investment funds. Please read the prospectus before investing. If the securities are purchased or sold on a stock exchange, you may pay more or receive less than the current net asset value. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated.
Forward Looking Statements
Forward-looking statements are based on current expectations, estimates, forecasts and projections based on beliefs and assumptions made by author. These statements involve risks and uncertainties and are not guarantees of future performance or results and no assurance can be given that these estimates and expectations will prove to have been correct, and actual outcomes and results may differ materially from what is expressed, implied or projected in such forward-looking statements. Assumptions, opinions and estimates constitute the author’s judgment as of the date of this material and are subject to change without notice. Neither Purpose Investments nor Echelon Partners warrant the completeness or accuracy of this material, and it should not be relied upon as such. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. Past performance is not indicative of future results. These estimates and expectations involve risks and uncertainties and are not guarantees of future performance or results and no assurance can be given that these estimates and expectations will prove to have been correct, and actual outcomes and results may differ materially from what is expressed, implied or projected in such forward-looking statements. Unless required by applicable law, it is not undertaken, and specifically disclaimed, that there is any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Before acting on any recommendation, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional
advice.
The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. This is not an official publication or research report of either Echelon Partners or Purpose Investments, and this is not to be used as a solicitation in any jurisdiction.
This document is not for public distribution, is for informational purposes only, and is not being delivered to you in the context of an offering of any securities, nor is it a recommendation or solicitation to buy, hold or sell any security.
Echelon’s Insight Team
Echelon’s Insight Team includes members in various departments such as Wealth Management, Capital Markets, Marketing, Talent, and Compliance who have subject matter expertise and collaborate together to build quality content to help our clients. This team approach helps us ensure content is produced that is meaningful, accurate and timely.
