Don’t Make These Financial Relationship Mistakes

22 Apr 2015

Statistics are showing that many Americans are marrying at later ages. The median age for first marriages in the United States is 27 now for women and 29 for men according to Pew Research, compared to 20 for women and age 23 for men in 1960. Although the divorce rate in the US has declined (yes, hard to believe, but according to the CDC this is true) this is partially due to the lower number of marriages overall.

What does all this mean? It seems the trend for many Americans in this stage of their lives is to cohabitate or simply put, live together. This can create many financial challenges as well. If you find yourself in this situation, try to avoid making these common mistakes:

1) Never co-sign a loan. Three out of four of these go bad. It’s your credit at risk should things go wrong.

2) Never assume financial responsibility for an adult dependent.  You have your own bills and they are capable of paying their own.

3) Keep all of your personal information, such as passwords and PIN number, to yourself.

4) You can’t change people’s financial behavior, especially the older they are.

5) Don’t live outside of your own budget.

There is enough pressure in beginning a new relationship. Don’t add money to the list. Stick to these financial habits and you will be less likely to become another statistic, I believe.

Good Luck! Jeff

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Jeffrey Johnston

Jeffrey is originally from Solon, Iowa. He currently resides in Swisher, Iowa with his wife, Prudence, and his three children, Seth, Ian, and Roman. He graduated from the University of Northern Iowa in 1989, where he majored in Finance and Investments. He has 24 years of experience in the investment and estate planning business. He is currently the President of “Premier Investments of Iowa, Inc.” Jeffrey’s main focus is Estate and Investment Planning for Senior Citizens and Pre Retirees. Jeffrey became a Chartered Financial Consultant (ChFC) in 2001. He is the author of many articles on industry related topics and he is a frequent seminar presenter. He is a Board Member TRIAD Linn County Seniors Against Crime, and he is also a past Board Member of the Heritage Area Agency on Aging Task Force. He is a member of CEO Roundtable in Cedar Rapids, a Daybreak Rotary Member, and a member of the Cedar Rapids Estate Planning Council. In March of 2009, Jeffrey became the host of the Premier Investments of Iowa Financial Hour which airs every Tuesday Evening from 6PM -7PM, on WMT 600 AM Radio. In his free time he enjoys golf, fishing, scuba diving, traveling, and coaching son’s basketball teams.