Opening a ‘Mad Money’ Account Can Help Ease Financial Stress for Couples
Lazetta & Rianka give their tips to CNBC on how to take financial pressure off your relationship.
Money can be one of the biggest stressors in a couple’s life. But there are certain tricks that can help ease the pressure.
One of those is what’s called a “mad money” account, a favorite of certified financial planner Lazetta Rainey Braxton.
The idea is that each person puts aside a set amount every month to spend on whatever he or she wants.
“No shame, no fault, fear, obligation or guilt,” said Braxton, founder of Financial Fountains in Baltimore and a member of the CNBC Advisor Council.
“If you want to accrue that money to have $1,000 bag, that is up to you,” she added. “Or a nice set of golf clubs.”
It’s not good to live individually in the household when it comes to money. It’s always better to work as a team. - Rianka Dorsainvil
The idea is to take pressure about splurge spending off the table, since the couple’s so-called mad money is already in the budget.
“That helps a lot, diffuses kind of the stress and guilt,” Braxton said. “You feel like you have some ownership within the relationship.”
But it’s not just spending habits that can wreak havoc on a relationship. Debt is also a big problem.
It’s an important issue to address since money plays a big role in relationships, according to a 2018 survey by Fidelity. It has an even bigger impact on those couples who brought debt into the relationship, the survey found.
Read the full article by Michelle Fox on CNBC.