Couples urged to discuss finances

06.14.09
By Nicholas Storie

Recently, policy makers, educators and parents have worried that no one has been properly advising kids and young adults about financial literacy.

Many parents have admitted that they haven't broached the topic of personal finance and money management with their own youngsters at home - potentially setting them up to face future credit and debt decisions unprepared.

But it seems that lack of communication about financial topics is more prevalent than just with young adults.

An updated Couples Retirement Study by Fidelity Investments, which was first conducted in 2007, reveals that amid the greatest financial crisis in recent history, couples have found trouble talking about joint finances, expenses and saving for the future.

Fidelity learned that many couples are operating independently when it comes to making financial decisions. Over half (55 percent) of survey respondents are not making decisions about the household budgeting and bill payment together.

Fewer than 40 percent of couples are communicating openly about investment plans for retirement - a mistake that could leave their financial future up in the air.

"Many couples told us that they have fewer assets, will need to delay retirement and work longer, and are worried about the impact of inflation and rising healthcare costs on their retirement savings, yet they aren't talking, planning or managing their finances jointly to address these very important issues," said Kathleen A. Murphy, president of personal investing at Fidelity Investments.

Open conversations about financial tools and planning are strongly encouraged by investment professionals, especially since Fidelity found that many couples don't agree on which retirement products are best suited to their needs.

In fact, some couples aren't even sure about the current tools they have in their personal financial portfolios. Fidelity reports that 59 percent of couples agree they own an IRA while 26 percent are at odds.

Investment professionals urge couples to review their finances - especially amid ongoing uncertainty.

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Miscommunication about financial future increasingly common