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Black Love and Money: 3 Tips to Support Financial Wellness

By Talia Stinson

  • PUBLISHED January 30
  • |
  • 5 MINUTE READ

Sixty-six—that’s the percentage of Americans who say money is a significant source of stress. Over half (55%) of those who find money stressful report that it causes fights or tensions in their family.1 And small tensions can lead to bigger divides over time—38% of couples say financial problems were a cause of their divorce.2

That’s why factoring active financial management into your relationship is so important when building a future as a couple. Conversations about how to build and manage a budget, create an emergency fund, search for a new home and teach kids about money are essential. But why do these important internal conversations add to household stress? Is there a way to make these conversations more productive, without straining relationships?

We won’t trivialize the topic of money management and relationships. And we understand that money management can indeed be stressful. When you add finances to building a life with another person, the pressure can mount. But blending your life with a partner’s—including sharing your individual relationships with money—is important to ensure you’re both on the same page.

 

Financial Challenges Faced by Black Couples

In the Black community, building financial literacy and even recovering from financial trauma are nuanced experiences that impact domestic partnerships.3 Here are some facts and figures to digest:

  • • Less than 50% of Black adults have an emergency fund.4
  •  
  • • In middle- to higher-income Black households, up to 4% say they don’t have enough funds to meet basic needs.4
  •  
  • • The wealth of the typical Black family ($44,900) is only about 15% of the wealth of the typical white family ($285,000).5
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  • • Overall, 60% of Black Americans state that their current household income covers basic needs, compared to 71% of all Americans.4

 

Building a domestic partnership—and possibly expanding your family—with another person can add to the stress of building generational wealth, managing finances and creating stability. And while existing data reveals staggering financial gaps in the Black community, progress is still possible. Working with your partner to build and manage household finances takes consistent conversations, planning and hard work.

Here are some tips to foster financial resilience at home.

 

1. Talk About Your Finances Sooner Rather Than Later

In any romantic relationship, it’s crucial to really know your partner. While you might not dive into money talks on your first few dates, as things get more serious, finances will likely come up. Just like you’re learning about each other’s personalities and interests, it’s also important to understand how your partner views and deals with money.

Imagine your money as a tool you and your partner can use to shape your future. This tool helps you both define and design your financial purpose.6 As you talk about building a life together, you’ll likely discover more about each other. Viewing money as a tool or vehicle to reach your goals can also help you bridge an understanding about how you want to grow together.

Consider having set meeting times throughout the month to discuss regular budgeting, future spending plans (like an upcoming vacation), or even retirement planning later in life. Free budgeting tools and apps can help make these conversations more interactive.7 You might even explore opening a high yield savings account or money market account to save for that vacation together.

Talking regularly about money can help reduce the stress that may come with financial planning and make a positive impact on your relationship.

 

TAKE THE QUIZ: Which Savings Account is Best for You?

 

2. Build a Plan for Wealth Generation

Planning on having children? Or are you creating a blended family with your significant other? You’ll likely want to discuss total family costs with your partner.

In Black families, it’s important to consider a family stewardship mindset when building assets, planning for the future and creating generational wealth.8 This mindset is centered on who you’re building for in your family, as well as what you’re building toward. What steps do you need to take to build and grow your legacy?

Acquiring and growing assets, such as buying a home or building up investments, can be a way to pass on something valuable to your kids or grandkids. But it’s not just about having stuff. It’s also important to learn and develop the know-how and skills to keep growing your wealth. And passing on those skills to the next generation is extremely valuable.

As your kids grow up, think about involving them in family financial planning. Starting early can help them learn the basics of financial management and build their financial literacy. You might open a savings account for them or talk about investment properties that could be good opportunities for the family. Making these tasks a family activity can be educational and bring everyone together.

 

READ MORE: 4 Steps to Raising Financially Savvy Kids

 

3. Manage Debt Together

So, what’s debt got to do with it? More than you may think.

Financial management as a couple also includes talking about past and current debts. That includes credit card debt, student loan repayment or even if one person filed for bankruptcy in the past. It’s not uncommon to be in a relationship while managing individual debt. In fact, 7 of 10 Americans tie the knot while managing debt.9

Being up front with your significant other early on can actually help your relationship grow. There’s no reason to be ashamed. Through communication and honesty, you can work together to find solutions.

A good place to start is to make a list of all debts owed, including the types and the total amounts. This way, you’ll have a full picture of what’s owed. Between you and your partner, you can agree on payment timelines and even if you might pursue additional methods to reduce that debt, such as debt consolidation.

As you work through the list to pay off debt, there are different repayment methods to consider, including the avalanche and snowball methods. With the former method, you’re paying off debt with the highest interest rate first and going down the list to the next highest. With the latter method, you focus on paying off the smallest debt first and moving on to the next smallest.

Work out a plan to pay off debt together. Managing debt should be part of your conversation around budgets, especially if you’re planning to live together or eventually get married. Plus, this repayment plan can be educational for your children. And as an added bonus, there are also ways to explore boosting your financial literacy and help build each other’s credit score. By sticking to the agreed-upon debt repayment plan, you set yourselves up for better interest rates and loans when making big purchases together, such as purchasing a new home.

 

The Final Word

Whether you handle money separately or together, you and your partner are working toward financial well-being as a team. Having regular money talks is crucial to building a life together. And while bridging any wealth gap and growing your financial knowledge as a couple might seem challenging, it’s doable. With the right attitude, a commitment to open and regular conversations and a resolution to using resources to learn and grow together, you can positively shape your overall financial future.

 

Talia Stinson is a Content Specialist with Synchrony, and has a background in research, content strategy and management. She specializes in writing on financial, technology and wellness topics.

 

READ MORE: Financial Planning for Those Who Don’t Like Finances

 

 

Sources:

1. Stress in America 2022: Concerned for the Future, Beset by Inflation. American Psychological Association. October 2022.

2. Bieber, Christy. Revealing Divorce Statistics in 2024. Forbes Advisor. January 8, 2024.

3. Sabree, Rahkim. Financial Trauma Is Real: Why Black People Should Consider Financial Therapy. Forbes. April 1, 2023.

4. Edwards, Khadijah. Most Black Americans say they can meet basic needs financially, but many still experience economic insecurity. Pew Research Center. February 23, 2022.

5. Aladangady, Aditya et al. Greater Wealth, Greater Uncertainty: Changes in Racial Inequality in the Survey of Consumer Finances. Board of Governors of the Federal Reserve System. October 18, 2023.

6. Hagen, Derek. Money Is a Tool, Not a Goal. Meaningful Money. May 12, 2022.

7. Gravier, Elizabeth. Here are the best free budgeting tools of 2024. CNBC Select. January 1, 2024.

8. Williams, Thomasina. Commentary: How Black families can be proactive in building generational wealth. ChicagoBusiness.com. April 10, 2023.

9. Gravier, Elizabeth. 4 steps to take when you or your partner is in debt. CNBC Select. November 14, 2023.