Financial Challenges of International Marriages

Different Educational and Professional Backgrounds

International relationships can be incredibly rewarding, but they can also come with unique challenges to address. One such challenge is navigating the different educational and professional backgrounds of partners and the financial challenges that can arise as a result. In this, the third of six in a series of posts, we explore the financial challenges that can arise from different educational and professional backgrounds in international relationships and provide tips for managing them effectively.

Challenges Due to Educational and Professional Backgrounds

One of the most significant financial challenges arising from different educational and professional backgrounds is differing financial priorities and values (Lee, 2015). For example, one partner may prioritize saving for retirement, while the other may prioritize spending on travel and experiences. These differences can lead to disagreements and misunderstandings, making it challenging to reach financial goals together.

Another challenge is the difference in financial knowledge and experience between partners. For example, one partner may have extensive experience investing in the stock market, while the other may have little to no experience. This can make it difficult to make informed investment decisions together (Olen, 2017).

So, how can you manage different educational and professional backgrounds as a financial challenge in your international relationship? Here are some tips:

Tips for Managing Educational and Professional Differences

1. Communicate openly and honestly: To manage financial differences effectively, it’s essential to communicate openly and honestly about your financial goals, values, and priorities. This can help you better understand each other’s perspectives and find common ground.
2. Educate yourself: If you have little to no experience with certain financial matters, such as investing or taxes, consider taking classes or consulting with a financial professional to improve your knowledge and confidence (Kearney & Levine, 2015).
3. Seek professional advice: Working with a financial planner or advisor can help bridge the gap between differing financial knowledge and experience levels (Kearney & Levine, 2015). A professional can provide valuable insights and advice on effectively managing your finances.
4. Create a joint financial plan: By creating a joint financial plan, you can outline your shared financial goals, values, and priorities and work together to achieve them (Lee, 2015). This can help you stay on track and avoid misunderstandings and disagreements.

Conclusion

In conclusion, different educational and professional backgrounds can pose significant challenges when it comes to managing finances in international relationships. However, by communicating openly and honestly, educating yourself, seeking professional advice, and creating a joint financial plan, you can effectively navigate these challenges and build a strong financial foundation for your future together.

If you are in an international relationship, or are contemplating it, and want help navigating the financial nuances involved, consider Avery Rock Financial. We are a small but growing Registered Investment Advisory firm in the central Maine area. We offer investment advice to people from all walks of life, including first-hand experience with financial matters dealing with international relationships.

References:

Kearney, M. S., & Levine, P. B. (2015). Income inequality and social preferences for redistribution and compensation differentials. American Economic Review, 105(5), 491-97. https://doi.org/10.1257/aer.p20151028

Lee, D. J. (2015). When Two Become One: Preparing for the Financial Consequences of Marriage. Journal of Financial Planning, 28(3), 38–42.

Olen, H. (2017, August 21). How to Manage Your Money When Your Partner Doesn’t. The New York Times. https://www.nytimes.com/2017/08/21/smarter-living/how-to-manage-your-money-when-your-partner-doesnt.html

• LinkedIn
• YouTube

Avery Rock Financial, LLC is a registered investment adviser.  The information in this material is for educational purposes only, is not intended to predict or guarantee future market performance and is not intended to act as individualized tax, legal, financial or investment advice.  Data contained herein from third-party providers is obtained from what are considered reliable sources.  However, its accuracy, completeness, or reliability cannot be guaranteed. Please consult a qualified attorney or tax professional for individualized legal or tax advice. Please contact a financial advisor for specific information regarding your individualized financial and investment planning needs.