Buffalo, N.Y. (WBEN) - On this Valentine's Day, it seems that money is one of the most common sources of conflict in relationships.
Keeping a secret bank account, or avoiding talking about money altogether,
can lead to mistrust and ultimately end the relationship.
A recent Bankrate survey found that 42% of Americans in a relationship have kept a financial secret from their partner.
"Ultimately, couples need to figure out what works best for them," said
Ted Rossman, Senior Industry Analyst for Bankrate, who joined WBEN Wednesday.
"We found that 39% of Americans, who are married or living with their
romantic partner, completely combine their finances. A similar percentage, 38%, have a mix of joint and separate accounts. And 24% keep their finances completely separate."
Rossman suggested a hybrid approach to finances, something called 'Yours, Mine, Ours.'
"You combine a lot of your money because you have a lot of joint expenses. But you also keep some separate for your own hobbies and spending. The key is that you both agree upon the parameters. Maybe you each get $100 bucks a paycheck. As long as it's agreed upon," he said, "it can be healthy way to foster independence."
He also underscores the importance of having financial conversations.
"Have a monthly money check in. Talk about upcoming bill and goals. What are you working toward? Do you want to buy a house in the next few years, or get out of debt, or save for your kids' college or your retirement? Whatever it is, the more you are pulling in the same direction, the better."
Rossman said how people handle their finances is largely generational.
"The combined approach is overwhelmingly popular with baby boomers. Gen-X and millennials favor the "Yours, Mine and Ours" approach and then there's another shift with Gen Zers. They favor a completely separate approach."