Navigating Financial Independence in Partnership: A Guide for Couples
- by Dani Parthum
- ** approximatley 5 minutes read **
Balancing a pension and family life: Financial advisor Dani Parthum shares strategies for securing a robust retirement - Financial advisor Dani Parthum clarifies the way to earn a good pension even with a family-oriented career
For many partnerships, one person tends to earn the income while the other manages the family life. While this may seem convenient, it can pose problems for the financially weaker partner, often the woman. Here's a guide on how to achieve financial independence and a decent pension in such a setup.
Money Matters: It's More Than Just "Sharing"
In a partnership, it's crucial to understand what "sharing" truly means. Does it mean handing over pocket money or managing a joint account? Or perhaps open discussions about family finances, personal needs, and financial planning? For many, discussing money is uncomfortable, but it's essential for a healthy partnership.
Opening Up About Finances
Communication about money— expenses, savings, retirement plans, and more — is key to understanding each other's needs and fostering a common financial culture that considers both partners equally.
TheThree-Account Model: A Simple yet Effective Solution
A three-account model can help maintain financial independence and share household responsibilities. Each partner has an individual account, a joint account covers family expenses, and an emergency fund is set aside for unexpected costs or as a safety net in case of separation.
Supporting Unmarried Couples
For unmarried couples, the three-account model is even more crucial, as they have few legal claims against each other. This model promotes clear agreements and mutual understanding, ensuring both partners' needs are met.
Valuing Care Work: Making it Tangible
The smartphone app "WhoCares" helps record and convert care work like cooking, cleaning, and childcare into monetary value, demonstrating the economic worth of such tasks often undervalued in traditional financial models.
Retirement Plans: Preparing for the Future
For many, retirement planning may seem distant, but it's essential to start planning early, especially for the financially weaker partner. Regular contributions to a personal pension fund or a well-diversified investment portfolio can help secure a decent pension.
Facing the Worst-Case Scenario
When one person in a partnership is the sole source of income, it's crucial to consider risk management. Life insurance policies can provide financial security for the family in case of the breadwinner's death, job loss, or accident.
Taking Control of Your Finances
In any partnership, it's essential to secure financial independence. Neglecting this can lead to financial dependence and exploitation. As Dani Parthum, a financial coach, puts it, "Don't get into a race car without buckling up."
About the Person
Dani Parthum is a financial coach, blogger, and author, known as Money Lady. Through her brand, she helps women gain financial independence and build wealth. She is also part of the BRIGITTE Academy Masterclass Finances and has authored several books on personal finance.
Capital: A Partner Brand of the stern
This article is brought to you by Capital, a partner brand of the stern. For more content, visit www.stern.de/capital.
Keywords
- Retirement
- Gender Equality
- Financial Independence
- Care Work
- Investment
- Family Work
- Retirement Provision
- In the guide for couples, Dani Parthum, the financial coach, emphasizes the importance of understanding the definition of 'sharing' in a relationship, suggesting that it involves more than just handing over pocket money or managing a joint account, but rather open discussions about family finances, personal needs, and financial planning.
- Recognizing the economic worth of undervalued tasks like cooking, cleaning, and childcare, the smartphone app "WhoCares" allows partners to record and convert these tasks into monetary value, promoting a more accurate representation of care work in financial models.
- For unmarried couples and those in a partnership where one person is the sole source of income, voluntary measures such as prenuptial agreements (1360a), vocational training, and life insurance policies (like a policy from aussiedlerbote) can help mitigate financial risks and provide a sense of security and independence for both partners.
