Ask the Expert
Arguing over money? He wants a new roof, but you want a hot tub. You want a Ping-Pong table, he wants a Mini Cooper. No matter how big or small your dispute, we’ll settle it for you. (We won’t publish your last name.) Send your dilemma to cashclash@globeandmail.com
Jen, 29, and Dave, 32, Kelowna, B.C.
Should one spouse make all the major financial decisions in a marriage? That’s the pickle this couple are in. With both a baby and an inheritance on the way, she’s trying to figure out the best plan of action. He argues it’s not his money to manage. Can they agree on a strategy before their family and their problems multiply?
SHE SAYS: CAN’T DO IT ON MY OWN
For the past while, our income has been somewhat sporadic. I’m a freelance writer who teaches part-time at a local college, and Dave just started studying to become a social worker. For a few years, we both taught English and travelled around Asia, but never managed to save much. I recently got my MA in creative writing, and now that we’re expecting our first child in April, I’d really like to get on stable financial footing. I’m about to receive a $100,000 inheritance. My grandfather owned some farmland in Saskatchewan and left the proceeds to his three grandkids. I’m grateful for the windfall, but a little panicked about what we’re going to do with it – I don’t want it all to disappear within a few years. We know we’ll be putting most of it toward student loans, but I don’t know what the best plan is for the rest. We’re renting right now and we’d like to buy our first home. I’ve been doing a lot of research and talking to advisers from different banks. They’ve suggested things like investing in an RRSP so we can withdraw the money later and claim the tax credit for first-time home buyers, or maybe short-term GICs that expire at different times to supplement our income. Dave doesn’t seem too interested in participating – I feel like he doesn’t care. I’m frustrated because I have to handle all of this by myself.
HE SAYS: WHATEVER YOU WANT, DEAR
Jen is the one who handles most of our finances, and I’m content to take a back seat. She’s pretty Type A. I’m not as knowledgeable, and I tend to go with the flow. I came from modest means, but my parents didn’t talk about money very much – I guess they tried to shield me from their struggles. With regard to Jen’s inheritance, I think it’s great that she’s getting it, but it’s not really my place to decide what to do with her family’s money. I’m guessing we’d pay off our debts first, and use the rest for a down payment on a house. I’d love to buy our first home somewhere around here. We’re not all that savvy, though, and the North Okanagan housing market can be challenging to get into – “crack shacks” start at $250,000. Where we are, anything decent is at least $500,000 to $600,000, and I’m not sure if we can afford it. We might have to wait a while. I think we’ll be okay once we’re both working full-time in a few years, but as to what we should do in the meantime, I’m not really sure we have a concrete plan.
This interview has been condensed and edited
Vital stats
Years married: 2
Kids: One, due in April
Current annual household income: $30,000
Projected future income (with Dave’s starting salary as a social worker, and if Jen gets a full-time teaching job): $100,000 (evenly split)
