CHICAGO, IL — (Marketwire) — 02/07/13 — As part of BMO Harris Bank-s ongoing commitment to financial literacy and Making Money Make Sense, BMO Harris is providing weekly financial tips. This week-s tip suggests you get to know your partner-s financial background before getting serious.
In most circles, asking your new love interest about their finances is considered a major faux pas. Although some numbers are off limits, there are some you need to know if you-re considering getting serious with your partner.
To set goals for the future, you need to know where the other person-s finances are now. Understanding each other-s situation will ultimately help both partners make better financial decisions.
BMO Harris Bank suggests gaining insight into your partner-s saving and spending habits by learning these four key financial numbers:
– Your score is in many ways, equivalent to a financial report card. A higher score demonstrates fiscal responsibility and means you-re more likely to be approved for loans and qualify for lower interest rates. If you plan to someday buy a car or home together, it-s important your partner has a good or excellent credit score so you can obtain the best rates.
– While student loans are probably not a deal breaker, a lot of credit card debt might raise a red flag. That-s because it may signify financial instability or problems with handling money. And don-t forget: if you marry your partner, his or her debt will also become your debt.
– This figure is the value of everything you have, minus what you owe. If your partner is just starting out, he or she may have a negative net worth if there-s student and/or auto loans or credit card debt. In this case, it-s important to also evaluate savings rate to get a better idea of his or her overall financial picture.
– It-s a good sign if your partner is investing in a work-sponsored 401(k) plan, individual retirement account and putting away 10 percent of his or her pay check in a savings account. Even better if he or she has an emergency fund containing three to six months of living expenses.
Put yourself in a comfortable place and get started with .
The Learning Center is brought to you by BMO Harris Bank, WGN, CLTV, WGN AM 1070, Chicago Tribune, RedEye and Hoy.
Based in Chicago, BMO Harris Bank N.A. provides a broad range of personal banking products and solutions through over 600 branches and approximately 1,300 ATMs in Illinois, Wisconsin, Indiana, Kansas, Missouri, Minnesota, Nevada, Arizona and Florida. BMO Harris Bank-s commercial banking team provides a combination of sector expertise, local knowledge and mid-market focus throughout the U.S. Deposit and loan products and services provided by BMO Harris Bank N.A. Member FDIC. BMO Harris Bank(SM) is a trade name used by BMO Harris Bank N.A. BMO Harris Bank is part of BMO Financial Group, a North American financial organization with 1,600 branches, and a retail deposit base of approximately $180 billion.
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Vanessa Hall
(312) 461-6543