A recent article in the Albany Herald highlights new research from the University of Georgia that explores how couples manage their finances. The study, which surveyed over 600 married or cohabiting individuals, examines demographic and personal factors that influence whether couples choose to pool their finances or keep them separate.

John Grable, an endowed professor in UGA’s College of Family and Consumer Sciences and a faculty member in UGA’s online Master of Science in Financial Planning program, co-authored the study. He noted that while many assume marriage or cohabitation results in an immediate co-mingling of resources, this is not always the case. “I just always assumed, based on my family background, that couples always pool their money,” Grable said. “If they were married, they just pooled assets and income and made joint decisions…This study shows we can actually identify groups of people or profiles of individuals and couples where pooling resources is not as common.”

The study found that certain factors, such as marriage, net worth, and household size, influenced whether couples combined their finances. Married couples, for instance, were 4.5 times more likely to pool finances. “Pooling assets in a case where there’s not a marital agreement can be really dangerous for the couple and the individual because the law doesn’t provide the same protection for unmarried cohabitating couples as it would for a married couple,” Grable explained.

One of the more surprising findings was that individual debt itself was not a primary driver of whether couples pooled finances. “It wasn’t necessarily the level of debt that mattered, but the net worth,” Grable said, acknowledging the importance of the couple’s overall financial situation.

The study also highlighted the role of communication in financial decisions. Couples who had open discussions about money were more likely to combine their finances. “Agreeing on spending mattered a lot,” said Michelle Kruger, a co-author and financial planner. “That’s a good thing. That’s something we want couples to factor in when they are making decisions about how to manage their money, whether that’s together or separate.”

Grable and his colleagues emphasize that the key to successful financial management in relationships lies in finding a system that works for both partners. “When there is trust and communication, couples can come to a place where they’re both happy with how they’re managing things,” Kruger said.

For those interested in learning more about financial planning, Grable’s work at the College of Family and Consumer Sciences provides a wealth of expertise. Through the online Master of Science in Financial Planning program, as well as the online Graduate Certificate in Behavioral Financial Planning and Financial Therapy, students gain valuable insights into managing personal finances and helping others navigate complex financial situations like those explored in this study.

Read more in “UGA Researchers Offer Insight on How Couples Integrate Finances” by Carlton Fletcher at the Albany Herald.