The Strong Influence of Financial Compatibility Among Gen Z in Relationships
Gen Z's Strong Preference for Financial Compatibility Over Physical Compatibility
Romance isn't dead, but it may be on its way out. Younger generations view financial compatibility as nearly as important as physical compatibility, according to a recent survey by Northwestern Mutual. The investment firm found that 49% of Gen Z said financial compatibility is more important than physical compatibility in a romantic partner. That percentage is surprisingly high, and it may result from some Gen Zers entering the workforce with high inflation and a housing shortage.
Financial compatibility is less important to other generations
Gen Z is the most adamant that their partners' finances align with theirs, and over time that idea appears to fade.
- Millennials: 40%
- Gen X: 35%
- Baby boomers: 30%
If there's one thing that nearly every generation agrees on, it's that money conversations should happen before the relationship gets serious. More than 7 in 10 Americans believe those conversations should happen 'well ahead of marriage or living together,' according to the survey.
Financial disagreements get better with time
Gen Z isn't wrong to be concerned about potential financial disagreements. Couples frequently disagree about money. An Orion survey released last year said that 27% of couples have money disagreements weekly or monthly.
- Fears about market risk and the economy
- Whether to spend or save money
- How important money is to their lives
- How to communicate about money
On the positive side, couples tend to have fewer disagreements about money over time. Gen Z partners are about six-times more likely to blame their partner for a poor financial decision than baby boomers. And over a five-year span, couples report being far more likely to report being more financially compatible.
How to get on the same financial page
- Talk about money
- Create shared goals
- Find what works best for both of you
- Come up with a plan
Finances can be stressful, especially when shared with a partner. Communicating, creating shared goals, and finding a financial plan that works for both individuals are key steps to achieving financial compatibility.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.