Personal Finance

Suze Orman says married couples that do this are taking a 'big risk' with their money

Ian Cooper

Published: October 22, 2024 9:30 am

One of the biggest risks facing married couples is an unfair balance of financial habits.

In fact, as noted by Suze Orman, “According to the New York Life survey, more than 6 in 10 men report they make all or most of the financial decisions in their household. Maybe some of that is bluster, but I think it is generally true. And indeed, in the same survey, less than 4 in 10 women said they were in charge of financial decisions.”

Of course, this differs in a variety of households.

But for our purposes, let’s focus on why Suze Orman says this needs to change.

Key Points About This Article

• UBS says 20% of couples make long-term investing decisions together.
• According to Suze Orman, married women are less likely to help take on “big-ticket” decisions that could have a substantial impact on the household’s financial security.
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She notes that married women are less likely to help take on “big-ticket” decisions that could have a substantial impact on the household’s financial security, investment and retirement account management decisions, as well as decisions on insurance and mortgage.

Orman added, “To not engage in and understand your family’s finances is to embrace weakness. You can’t be financially secure if you don’t know what decisions are being made, and don’t understand the ramifications of those decisions.”

“Statistically, we know that wives tend to outlive husbands. Even if your husband has made fantastic choices and has left a detailed blueprint of your financial records, you are going to be miserable if you find yourself engaging with all of that for the first time as a widow.”

UBS Says 20% of Couples Make Long-Term Financial Decisions Together

While 20% is certainly shocking, 100% of men and women say both should be equally involved with long-term financial decisions. That’s according to a UBS “Own Your Worth” report.

In addition, while seven in 10 men say that take the lead on long-term financial decisions, nine in 10 do wish their spouse was more involved. Plus, as noted by CollegeCentral.com, men and women do say making such decisions would increase their confidence in the future and help cut down on anxiety about money. Right now, only 20% of surveyed couples make the decisions.

UBS also found, “Men who take responsibility for the long-term financial decisions overwhelmingly feel they have greater financial knowledge than their spouse (95%), that their spouse is disinterested in these topics (90%) or that their spouse is busy with household obligations (84%). Furthermore, seven in 10 men don’t trust their spouse to make good choices and, in the event of a divorce, believe they are in a better position to protect their assets if they are the lead decision-maker.”

Again, according to Orman, that needs to change.