Yesterday I was speaking with a lady; will call her Mary for the sake of this article, that lost her husband about 4 or 5 years ago and she was telling me about how difficult it had been over the last few years. Mary mentioned that she had to sell her home and move into much smaller one all the while trying to pick up the financial pieces that she had no idea about.
When I asked Mary about life insurance she mentioned that the policies were cashed in about 2 years before her husband got sick and that she really didn’t have a choice in the matter. Her husband also ran a business so I am not sure what exactly the reasoning behind this was, but I can say that it probably happened without much guidance or advice.
Now I am not sure if this was strictly a cultural thing, but I do know that many households today still see the man as the bread winner and the sole person responsible for the financial well being of the family.
This mentality is wrong!
Finances are the number one reason that married couples get divorced over, so it is very important to have an open, transparent and accountable mindset. Not only that but if one of you gets injured, has an accident or is temporarily hospitalized it is always a good idea to have both parties know where all the money comes from and goes to.
Both men and women bring different aspects to the table when it comes to finances and different approaches which should complement each other. Compromise on money issues is very important and a healthy way to approach life.
Take Mary for example, she was excluded from all financial decisions and did not know what was coming in or going out. This was further complicated by the fact that her husband was also running a business. It took her 5 years for her to figure everything out, but I have to ask, what fell through the cracks in the meantime? How much greater did their debts grow during the time that she was unaware?
This is way I believe that women should be part of the conversation, especially if we are talking about a one income family. Here are some tips that will help you get started.
  1. Make a list of all assets and liabilities.
  2. Come up with a budget and strategy to pay off any outstanding debts.
  3. Review your insurance coverage to make sure that if one of you is unable to work or passes away that the debts will be covered as well as the lost income.
  4. Get joint bank accounts, so that when someone is unable to do transactions the other can act on the family’s behalf.
  5. Put into place a will and power of attorney.
  6. Ensure that all of the assets have an assigned beneficiary.
  7. Invest together, if you can’t explain the benefits of an investment to the other than you should not be involved with it.
  8. Encourage one another when you reach milestones and celebrate.
  9. Teach your children early about handling money and show them that in the future they too will need to do the same as you.
  10. Be informed, you work hard for your money so make sure that you educate yourself about the different investments and risks with any vehicle.
To get a head start on this process today, download this virtual shoe box designed to help you to keep track of your important personal and family documents – everything from insurance policies, bank accounts, investments and mortgages to health records and will and estate information.
To learn more about insurance or to get helpful information and guides visit.
  www.protectingwhatmattersmost.com.
Edgar Schuchardt
416-806-5813