A strong majority of Canadians, 77%, say they would not marry someone who was bad at managing their personal finances or if they held excessive debt, according to the TD Canada Trust Valentine’s Day poll
The poll, which surveyed Canadian adults currently or recently in a committed relationship, found that 29% say they would date but never marry someone who couldn’t manage their money well, 37% say they wouldn’t even date someone who didn’t have their finances under control, and 11% say they were recently in a relationship like that, but wouldn’t do it again.
“Opening up about your finances — not to mention actually sharing your assets and liabilities — can be a challenging notion for some,” Andrea Phillips, vice president, retail savings and investing, TD Canada Trust.
The good news for Canadians is that nine-in-10 feel comfortable and confident talking to their partners about money. At the same time, some lovebirds admit to telling little white lies to hide their spending splurges. Twenty-one percent of Canadians have told their partner that something they purchased cost less than what it did and 13% have hidden a new purchase from their other half.
When it comes to joint personal finances, love-struck Canadians are more likely to take the plunge and buy a home together (72%) than they are to open a joint bank account (68%), set a joint financial plan (64%) have a joint credit card (52%), or contribute to each other’s RRSPs (43%). By contrast, one-third say they keep their finances completely separate from their partner’s.
Phillips says there can be a number of benefits to pooling assets with your partner, including lowering a household’s overall tax burden:
“If you are married or in a common law relationship, you could consider a strategy where the higher income earner contributes to their partner’s RRSP. The higher income earner can then claim a deduction on their own taxable income, and when the lower income earner withdraws the money in retirement it may be taxed at a lower marginal rate than their partner’s, resulting in tax savings.”
Despite the trend of combining finances, 82% of Canadians say they would not consider a pre-nuptial agreement. Canadians who are currently separated or divorced are the most likely to consider one for their next relationship (29% versus 16% nationally).
TD Bank Group commissioned Environics Research Group to conduct a telephone omnibus survey of 2,000 Canadians 18 years of age or older, with 1,379 who are currently or were recently in a serious relationship. Results were collected between January 5-15.