Millennial couples are more open about their finances than their parents and grandparents, and they are happier because of it.
According to a new survey by TD Bank, 75 percent of millennial couples talk about money at least once a week, compared to 66 percent of Gen-Xers and 44 percent of baby boomers. About 97 percent do it at least once a month.
The survey also found that 80 percent of all couples who discuss money on a weekly basis are happy in their relationships.
“We’re in a better place than we used to be because younger couples are more willing and open to talk about their money — and to address it directly, right out of the gate,” said Dr. Jane Greer, a psychotherapist and relationship expert, in an interview with CNBC.
It makes sense that millennial couples talk more about their finances. They have more to gain from an open discussion and more to lose by avoiding the topic. About 63 percent of millennials have $10,000 in student debt, and more than a third own more than $30,000. This has delayed marriage, children, and the purchase of a first home. Millennials are eager to get on with their lives and financial planning is the only way to move forward. About 57 percent have a savings goal, and an impressive 63 percent are saving their money in some fashion.
For some couples, this openness began as early as before the first date. Nearly 30 percent of those who found love online say they talked about money before they even went out. After all, what’s worse than falling in love with someone, and then finding out that they have a habit of maxing out their credit cards?
One reason it’s important for millennials to talk regularly about money is that many young married and co-habitating couples (roughly 28 percent) are choosing to keep their finances separate. How else would a couple know if they can afford a major purchase without an open discussion? Moreover, keeping track of income isn’t as easy as knowing each other’s annual salary. The rise of the gig economy has complicated the notion of “annual income” as it can be fickle and inconsistent.
Millennials have taken big leaps to redefine the status quo on marriage—for better and for worse. In this case, the millennial generation has finally gotten it right.
