"Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply

uncaD
Posts: 60
Joined: Mon Jun 24, 2013 12:21 pm

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by uncaD » Thu May 03, 2018 7:56 am

Definitely true in my case

User avatar
Cobra Commander
Posts: 105
Joined: Tue Mar 14, 2017 11:09 am

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by Cobra Commander » Thu May 03, 2018 9:23 am

Makes a lot of sense for many aspects of the relationship beyond just finances. For example, DW is the primary meal preparer so while there are a handful of dishes I can make she definitely has greater expertise than me as that is her primary responsibility. Meanwhile, DW does not know how to start the lawnmower because I handle that task.

Swampy
Posts: 742
Joined: Fri Aug 31, 2012 7:16 am

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by Swampy » Thu May 03, 2018 9:37 am

Classic partnership division of working roles. One is in charge of laundry and cooking. The other is in charge of home maintenance and paying bills.

Trouble begins when that partnership division ends due to death, illness or divorce.
If you fail to plan, you plan to fail. | Failure is not an option. | If I have seen further, it is because I was carried on the shoulders of giants.

GAAP
Posts: 450
Joined: Fri Apr 08, 2016 12:41 pm

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by GAAP » Thu May 03, 2018 9:39 am

Certainly true for us -- and a real concern. I agree with the author's comment that it's not surprising or unusual. Nevertheless, it's something I need to address and that has actually caused me to simplify even more than my natural inclination.

User avatar
goodenyou
Posts: 1222
Joined: Sun Jan 31, 2010 11:57 pm
Location: Skating to Where the Puck is Going to Be..or on the golf course

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by goodenyou » Thu May 03, 2018 9:48 am

The reason for the "majesty of simplicity". Divide and conquer has always been our motto. We gravitate toward the tasks we enjoy (or can best tolerate). A basic understanding of finance is imperative. It is essential to at least understand how to implement (continue) the agree to plan. I have written down the basics of what to to if and when. Divorce...your on your own. :twisted: Thankfully, we have invested in a healthy and happy marriage for many years :D
"Ignorance more frequently begets confidence than does knowledge" | "The best years you have left are the ones you have right now"

NotWhoYouThink
Posts: 1893
Joined: Fri Dec 26, 2014 4:19 pm

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by NotWhoYouThink » Thu May 03, 2018 10:15 am

We both knew about apartment living and putting money in the 401k when we got married.

If I die tomorrow, he may learn to DIY or may turn things over to PAS.
If he dies tomorrow, I may learn to change the blades on the lawnmower or may hire a lawn service.
He'll never paint the trim, I won't snake the drains.

Nothing is less surprising to me than finding out that people in a long term relationship gravitate to different roles. Economics 101. Click-bait.

fposte
Posts: 1169
Joined: Mon Sep 02, 2013 1:32 pm

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by fposte » Thu May 03, 2018 10:19 am

Swampy wrote:
Thu May 03, 2018 9:37 am
Classic partnership division of working roles. One is in charge of laundry and cooking. The other is in charge of home maintenance and paying bills.

Trouble begins when that partnership division ends due to death, illness or divorce.
I've heard that suggested as one reason for the strain of widow/widowerhood--that formerly delegated tasks have to be picked up again, throwing a lot of learning curve and cognitive load into an already difficult time.

mnnice
Posts: 317
Joined: Sat Aug 11, 2012 5:48 pm

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by mnnice » Thu May 03, 2018 1:33 pm

Swampy wrote:
Thu May 03, 2018 9:37 am
Classic partnership division of working roles. One is in charge of laundry and cooking. The other is in charge of home maintenance and paying bills.

Trouble begins when that partnership division ends due to death, illness or divorce.
And if we are honest they all end.

I have stuff I do nearly every week that would be easier to outsource to my DH or very mechanical teenaged son. I often still watch the appropriate Utube video and attempt myself first. I have watched my own mother in her widowhood struggle with simple stuff due to being married to my very handy father. People need to stretch more often.

Jack FFR1846
Posts: 7227
Joined: Tue Dec 31, 2013 7:05 am

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by Jack FFR1846 » Thu May 03, 2018 1:36 pm

Cobra Commander wrote:
Thu May 03, 2018 9:23 am
Makes a lot of sense for many aspects of the relationship beyond just finances. For example, DW is the primary meal preparer so while there are a handful of dishes I can make she definitely has greater expertise than me as that is her primary responsibility. Meanwhile, DW does not know how to start the lawnmower because I handle that task.
I get that. I can make toast and popcorn. She doesn't know we own a lawnmower.
Bogle: Smart Beta is stupid

KarenC
Posts: 67
Joined: Mon Apr 27, 2015 7:25 am

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by KarenC » Thu May 03, 2018 1:58 pm

Cobra Commander wrote:
Thu May 03, 2018 9:23 am
Makes a lot of sense for many aspects of the relationship beyond just finances. For example, DW is the primary meal preparer so while there are a handful of dishes I can make she definitely has greater expertise than me as that is her primary responsibility. Meanwhile, DW does not know how to start the lawnmower because I handle that task.
This makes me think of comparative advantage.
"How much you know is less important than how clearly you understand where the borders of your ignorance begin." — Jason Zweig

MathWizard
Posts: 2886
Joined: Tue Jul 26, 2011 1:35 pm

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by MathWizard » Thu May 03, 2018 2:24 pm

In our case, this is not true.
We've actually lessened the gap, both changing our approach.
This through 35 yrs. of marriage.

My wife was actually better than I was when we got married, because she was more
detailed. (She was also a bookkeeper.)

I balanced the checkbook and would sometimes reconcile the bank statements in the past, but
she tends to reconcile now, though we are writing fewer checks nowadays, and using plastic
for groceries, which is where most of the checks went anyway.

I studied up on investing when she thought that the stock market was gambling, she being brought up to
believe that CD's were as risky as you should get with financial instruments.

After seeing my portfolio grow, she was OK with IRAs, and went 100% stock. I also got her to move
to Vanguard after her ER went up from the original 0.20% to 0.69% of AUM.
In the past 2 years, she asked about dialing back on stocks. She is now 80/20, while I am 60/40. I expect that
we will settle in at about 70/30 along with short term cash of about $30K going into retirement. ( I don't count short
term cash as investment.)

When her family talked about their "guy" as a financial advisor/broker, she just points to me as hers.
I'm pretty sure that we have the highest NW compared to her siblings.
On my side, I'm sure we are middle of the pack, but my side started out much poorer.

RetiredAL
Posts: 115
Joined: Tue Jun 06, 2017 12:09 am
Location: SF Bay Area

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by RetiredAL » Thu May 03, 2018 3:58 pm

True for me and DW.

Just today, I had to drag her over to Fidelity to add her as Power of Attorney to a Roth Conversion account I had created in December. Not quite kicking and screaming, but she didn't see the value of doing it until I told her that if I became incapacitated, that gave her access to that money. This is not the first POA's we've done, as I prefer for our financial accounts to use that Institution's POA vs our Estate's POA.

User avatar
verbose
Posts: 556
Joined: Thu Aug 28, 2008 10:05 am

Re: "Gap in financial literacy widens for couples the longer the relationship lasts, study suggests"

Post by verbose » Fri May 04, 2018 1:37 pm

Yes, this.

My husband and I have been together since college, so there are things neither of us has ever learned to do as an adult because the other one does it. I took his checkbook away while we were dating when I realized he had no idea how to use it and no interest in learning. He affectionately calls me his CFO.

Post Reply