Money conversations you must have with your partner

Money conversations you must have with your partner

Whether you’re planning your wedding or you’re about to go on your first date, there are a few questions you need to get out of the way to help determine whether you are compatible and share similar financial priorities. 

  1. Who pays on a first date? 

A question for the ages, and one worth discussing before you’re left in an awkward bill stand-off at the end of the date.

RateCity research found that three quarters (71.2 per cent) of men will pick up the entire bill, with a third of women (30.3 per cent) expecting them to! 

However, it may not come down to gender stereotypes, with one in three people earning $30k or less saying they expect to pick up the bill on a first date. Compare this to a stingy one in five earning $150k or more who expect their date to pay.  

  1. Have you ever been bankrupt? 

Bankruptcy is an issue that can impact more than just your credit score. For the sake of transparency, it may be worth discussing your financial failings alongside you triumphs with your partner. However, some people are quick to judge their partner’s financial history. 

Women are more concerned about a partner’s financial history than men, with nearly 60 per cent admitting they wouldn’t marry someone who had been bankrupt. Fewer than half of men shared this same concern. 

Perhaps the older we get the less judgemental we are, as two thirds of millennials say they wouldn’t marry someone who had been bankrupt, but more than half of baby boomers would still say “I do”. 

  1. How will we divide the financial decision-making? 

Whether it’s choosing who will pay the bills or deciding when to buy a new car, ideally, you’d want to discuss all major financial decisions before they’re made and divide it all equally. However, for many people having one set “decision-maker” is an important issue.  

RateCity research found that 65.9 per cent of men believe they are the financial decision-maker in their household. But only 9.9 per cent of women think that their partners call the shots. 

  1. How much debt do you have?

Much like the topic of bankruptcy, many Aussie couples may be concerned about the level of debt their partner has, or is capable of accumulating. Australian Securities and Investments Commission’s (ASIC) credit card debt clock currently shows that Australians owe $32 billion in debt – an average of $4,200 per card holder.

If one member of the relationship is more prudent, then the level of debt their partner has may be of concern, particularly when it comes to marriage or sharing finances.

RateCity research found that around half of Aussies say money has caused an issue with a loved one, and 41 per cent of divorced couples say money caused significant issue with a partner.

  1. What should we save for? 

Would you rather invest in property or in experiences? Talking to your partner about what you want to save for will help you to determine your priorities. If one party is ready to settle down and buy a house and the other is planning on blowing their savings on a 3 month Eurotrip, you may not be on the same page. 

If you’re both interested in combining your savings, it’s worth comparing high interest savings accounts with competitive features and low fees. As these types of accounts pay higher interest than everyday accounts, they help you reach your savings goals sooner. 

 

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Learn more about savings accounts

What are the two types of NAB locked savings accounts?

With a locked savings account in NAB, you can earn bonus interest and learn financial discipline. NAB offers two types of locked savings accounts, each with their own terms and conditions.

The NAB Reward Saver account pays a variable base interest rate of 0.05 per cent per annum and a bonus interest of 0.55 per cent. You’re eligible for the bonus if you make a minimum of one deposit on or before the second last banking day and have no withdrawals in the month.

Meanwhile, the NAB iSaver account provides 0.05 per cent as the standard base interest rate and a fixed bonus margin of 0.55 per cent during the first four months from the date of opening the account. You can park your cash in the account and enjoy unlimited monthly transfers between linked daily bank accounts without impacting the interest rate.

Can you have multiple ING savings accounts?

Yes, you can open up to nine accounts with ING at any particular time. If you’re saving money for various goals, such as buying a car or taking a holiday, you can name each of your multiple ING savings accounts differently.

To get a Savings Maximiser account, you’ll need to deposit more than $1000 every month and make at least five additional purchases. If you also want to grow your savings, from 1st March 2021, you can earn up to 1.35 per cent per annum variable interest on one account with a balance of up to $100,000 when you also maintain an Orange Everyday account.

With ING, multiple savings accounts can help keep track of all your savings goals. All the accounts offer flexible withdrawals where you can withdraw as low or as high as you want without impacting your earning interest rate. However, you can only earn the bonus interest on one account. To apply for a Savings Maximiser account, you can visit ingdirect.com.au.

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria

What are the requirements of an ING Bank locked savings account?

An ING bank locked savings account - also called a term deposit - offers you interest in exchange for holding your money for a period of time.

The terms offered include as little as 90 days or as long as two years. Generally, the longer you lock your money away, the higher the rate of interest. 

The minimum deposit amount for an ING locked savings account is $10,000. 

To be eligible to apply, you must: 

  • Be an Australian resident for tax purposes
  • Be aged 13 years or older
  • Hold the account for personal use (ING offers business term deposits as a separate product).