Marriages and Businesses
Just like a business, it is more likely that your marriage is going to fail when you’re financially stressed. Marriages are stressed when you don’t have money to put food on the table. Here are some statistics on business and marital failure:
- 10% of marriages fail in the first two years.
- 20% of businesses fail in the first two years.
- In the first five years 20% of marriages fail.
- 40% of businesses fail in the first five years
Note that though more businesses fail, that both marriage and business failures double from year two to year five. Why the higher fail rate for businesses? Financial Success is the measure of a business. Marriages presumably run on love, and involve two people rather than a single owner and so have a lower fail rate and higher resilience.
Relationship and Money
Given those facts, you would think there would be no correlation. As we consider how people in relationships think about and handle money the picture gets clearer.
- 70% of all Americans have less than $1,000 saved in the bank.
- Think about this nearly half of Americans who are married or living with a partner say they argue with the person over money.
70% of all Americans have less than $1,000 saved and 48% of people who are married say they’re arguing about it. What’s happening with the other 22% Are they blissfully ignorant? I mean, what’s the deal? There’s a lot of information on this and pulling it apart is tricky but the statistics themselves tell a story about how couples think about money and marriage.
Financial Decision Making
UBS recently surveyed couples and found that when you ask them if they
share the financial decision-making the overwhelming majority of both
men and women said that they do so 99% of men that they shared in the financial decision making 92% of women said they do as well.
That’s pretty cool, right? However, when pressed for details a different picture emerged.
Who Manages What?
In couples of every age group, from millennials through the World War II generation, men tend to manage the investments, while women take care of paying the bills and together they make decisions on things like buying a house. That is not, however, the same thing as shared awareness and shared responsibility. Even though women are handling one part of the finance and men are handling another how much discussion and understanding goes on between them? Remember that 48% of couples are fighting about money. Financial Strife drives 40% of divorces.
Some more statistics
- 70% of men are the Breadwinners according to one survey.
- Of the female Breadwinners 43% said they leave the financial decisions to their husbands.
- 40% of couples where men make most of the decisions, women often report that they feel uninformed and they tend to worry more about whether they will have enough money in retirement.
There is always a concern where there is no transparency. Most men are handling the investment side of the relationship without reviewing been the generalities with their wives, their partners.