Gen Z, Millennial Couples Prefer Financial Autonomy
Gen Z, Millennial Couples Prefer Financial Autonomy
Over the years, I’ve come to believe that learning to navigate financial discussions and events in a relationship is a must that transcends generations. However, recent data shows that Gen Z and Millennial couples are forging their financial path once again.
In fact, 43% of Gen Z and 31% of millennials say they prefer to keep their financial accounts separate from their partners to maintain financial autonomy, and for many, this may be what’s best for their financial situations. However, this approach will almost always require extra structuring when considering investment, retirement, or estate strategies.1
Fortunately, the same communication lessons seasoned investors (and couples) learned in their younger days still apply when maintaining separate accounts.
Here are some of my favorite time-tested strategies for maintaining open financial communication with one’s partner:
- Identify Shared Expenses — Shared expenses include housing, utilities, and groceries. Coming to a mutual understanding about what costs are shared and how they are split is key.
- Consider Income Differences — If there’s a significant income difference, some couples opt to divide expenses in proportion to their incomes to ensure a balanced financial load.
- Agree on a Savings Goal — While you may have your current financial split figured out, you should also agree on an annual savings goal. This will help prevent surprises on how prepared your household is as you near retirement.
- Establish Transparency — Even with separate finances, transparency is crucial. Some have found luck in creating a single joint account for shared expenses to foster transparency and trust while keeping all other accounts separate.
Reach out to your financial advisor to help facilitate a discussion around shared accounts, maintaining financial autonomy, or any other financial questions you (or your loved ones) may have.
1CNBC.com, November 16, 2023. “Gen Z and millennial couples are more likely to keep their finances separate.“
Related Topics
Disclosures: Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Concord Wealth Partners, or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Concord Wealth Partners. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Concord Wealth Partners is neither a law firm, nor a certified public accounting firm, and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Concord Wealth Partners’ current written disclosure Brochure discussing our advisory services and fees is available upon request or on our website. Please Note: If you are a Concord Wealth Partners client, please remember to contact Concord Wealth Partners, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing, evaluating, and/or revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Concord Wealth Partners shall continue to rely on the accuracy of information that you have provided. Please Note: If you are a Concord Wealth Partners client, please advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
