Financial literacy is the possession of the set of skills and knowledge that let individuals make informed and effective decisions about handling their finances.
Financial literacy is crucial to successful adulting because creating and maintaining a budget is one of the most basic aspects of staying on top of your finances as a couple.
However, financial literacy is a skill and is best masters by an individual before introducing it to a partner in a romantic relationship.
Note that your financial decisions impact relationships. Whether the financial state of a relationship involves debt or more credit, both parties in the relationship will surely be affected.
Below are few steps on how to practice financial literacy in a romantic relationship.
In other to practice financial literacy, both parties have to initiate financial discussions and in doing so, it is very important for both parties to be transparent about their credits, debits, and incomes.
Unlike popular opinion, having financial discussion helps both parties to be clear about their money personality which includes, spender, saver, flyer, risk, taker, security seeker.
In line with what both parties have discussed, it will then be easier for both parties to budget and identify their money stress in the relationship. It will also help in documenting every financial step making sure to track how both parties spend and save money.
Budgeting covers include income, credit, expenses, emergency fund, fund allocated for specific projects or plans and savings or investments.
3. Respect financial rules.
Having discussed and budgeting, it is important for both parties to follow through and respect the financial rules. In the case where one partner is cheating financially, an apology should be issued followed by corrective measures to resolve the matter.