57% of couples say they manage short-term money matters together

57% of couples say they manage short-term money matters together and 58% say they manage the long-term together too according to research by by Opinium for Hargreaves Lansdown.

The research also. found that  29% of people in a couple say they plan long-term money matters on their own, with no input at all from anyone else. Meanwhile, 8% leave it to their partner. Men are more likely than women to say they manage long-term finances on their own (35% compared to 22% of women).

Men are also more likely to say they manage short-term finances alone (34% compared to 26% of women). 63% of women say they manage long-term finances together (60% the short term), but only 54% of men agree.

Sarah Coles, Head of Personal Finance, Hargreaves Lansdown said “Women and men have very different views on how they manage money. Even in the same relationship, the woman may be convinced they are working together, making decisions to benefit them both, while the man is certain that he’s in charge. It’s worth getting to grips with what’s actually going on, or there could be serious problems further down the line.

“Women are more likely to say they manage money together. Almost two thirds of women say they do this, but among men, this falls to around half. Given that statistically most of these women are in relationships with men, some of this is likely to come down to perception.

“Men are much more likely to say they manage the long-term on their own without any input (35% compared to 22% of women). It could mean they take charge of things like how stocks and shares ISAs are invested and how pensions or SIPPs are growing. Men are more likely to say they handle short-term money matters alone too (34% compared to 26% of women). This includes things like paying the bills, but also issues like building up emergency savings.

“It may be that women are having money conversations with their partner that make them feel they are coming to a joint decision, while some men think it’s optional to consider their input. Where couples are discussing what to do with the family finances, and the lion’s share of the income is earned by the man, there’s a risk he will do what he chooses.

“It means it’s worth having a frank conversation about how these decisions are being made, so you both know exactly where you stand. It’s not going to be a comfortable chat, but it’s far better for women to have it now than to have a horrible surprise when they retire and want to fall back on the money they think they’ve saved or invested together.

“Two in five couples leave short-term money management to one of them, with just under a third (30%) saying they deal with it themselves – without any input from their partner, and just under one in ten (9%) saying they leave it to their partner. This is far more common before retirement. After retirement, 70% say they manage it all together. We’re slightly more likely to make long-terms plans together – at 58%. The older we are, the more likely we are to do this. Only 49% if those aged 18-34 plan with a partner, while 68% of those aged 55 and over do. This may be because, as we age, we may be more convinced we’re spending the long term with the same partner.

“Having children seems to push parents further apart financially. Among those with no children in the house, 68% say they plan for the short term together and 66% plan for the long term with their partner. This falls to 44% and 49% among those with children living at home.

“This may be because, in some cases, there are divides between a primary child carer and a primary earner. In some cases, the carer may take the reins over the short-term, because they know what they need to spend on each member of their family. Meanwhile, the breadwinner may make the decisions around long-term saving and investing, because they’re earning more, and have more to put aside for the future. Alternatively, it may be the result of the fact that life with children is busy that parents carve out jobs for one another, so there’s one less thing to worry about.

“This may feel like a sensible approach because, as with any other household chore, you can leave it to the person who likes the job more or is better at it. It may seem like a good way for the less engaged partner to avoid dealing with financial issues, but it could backfire horribly. There’s the risk that the money manager over the short-term makes a mistake, or builds up problems that they don’t feel they can share. The couple may be facing debts that only one of them has any idea about.

“Over the long term, one partner may be prioritising their own plans for the future, and not discussing it, which could mean the other falls well short of the retirement they want, or ends up completely dependent on their partner. And while some couples are happy to manage money this way, others want the independence of money of their own throughout their life.”