Couples 'need to be open about money'

People have been urged to be open about money matters with their partners.

It may not be the most romantic thing to talk about, but couples have been reminded of the importance of discussing personal finances.

Writing in a News Limited article, David Koch - presenter of Seven Network's Sunrise show - and wife Libby point out the need for both partners in a relationship to take an equal responsibility when it comes to money matters.

Calling for finances to be discussed on a regular basis, they recommend couples set aside around 30 minutes each month to sit down and look at how much money is coming in and what areas it is being spent on. From here, the pair also advises that areas such as credit cards, insurance policies and bank accounts need to be talked about in the open.

In an effort to ensure financial - and marital - harmony, the couple point out that one of their own "golden rules" is to ensure that the small print for all products taken out, whether this is the conditions of use for a new term account or the guarantee on an electrical appliance, is thoroughly read through.

Other Australian banking advice saw the pair recommend that those with a joint account should ensure that their bank does not allow cheques for more than a pre-specified amount to be paid out unless they contain both signatures.

And taking such steps could prove to be beneficial as they suggested the ongoing financial downturn is placing an increasing amount of strain on Australian families.

"The danger is that one partner takes responsibility for the finances, leaving the other partner incredibly vulnerable if there's a sudden break-up," the pair point out.

Such guidance comes on the back of recent comments made by Linda Elkins, managing director of Russell Superannuation, that Australians "consistently overestimate" their ability to manage money and make investment decisions.

Written by Emma North