Love & other assets

How your spending habits shape your relationship (and vice versa)

Episode Summary

In this episode of Love & other assets, Emily Luk speaks with Scott Rick, a professor and expert on the psychology of spending. Together, they explore the clash of tightwads and spendthrifts in relationships, offering strategies to navigate financial friction. From handling mismatched incomes to giving thoughtful gifts, this episode provides actionable insights on creating balance in your financial life as a couple.

Episode Notes

In this episode of Love & other assets, Emily Luk, CEO and co-founder of Plenty, welcomes Scott Rick, a marketing professor at the University of Michigan's Ross School of Business. Rick, who specializes in the psychology of money and relationships, delves into his research on tightwads and spendthrifts, the two distinct spending styles that often clash in romantic relationships.

Rick explores the dynamics of different combinations of these spending styles in relationships. Two tightwads tend to be safe and stable but might lack excitement and novelty. Mismatched couples, with one tightwad and one spendthrift, can experience more arguments over money, but Rick suggests strategies to navigate these disagreements, such as letting the tightwad win on material purchases and the spendthrift on shared experiences. Two spendthrifts can be explosive and prone to debt, but they might also enjoy a more adventurous lifestyle.

Rick delves into the complexities of mismatched incomes in relationships, highlighting the importance of a "we earn" mentality and joint accounts to avoid scorekeeping and foster a sense of partnership. He stresses that even in relationships with different income levels, everyone should have some personal money to spend independently.

Rick also shares his insights on gift giving, emphasizing the significance of surprise and thoughtful gifts that reveal an understanding of the partner's interests and aspirations. He argues that gifts should involve some sacrifice, highlighting the psychological impact of a tightwad's willingness to spend money on their partner.

The episode concludes with Rick's current research on tightwads and spendthrifts by state, exploring potential political connections and the impact on spending habits. He also mentions his ongoing research on prenuptial agreements

What we discussed:

  1. Are you a tightwad or a spendthrift? This episode dives deep into the psychology of spending habits and how they impact your relationships. Find out which category you fall into and how to navigate the financial minefield with your partner.
  2. Do opposites really attract? The episode explores the dynamics of mixed-spending couples: tightwad and spendthrift. Discover if those differences lead to constant arguments or can actually create a happy and balanced relationship.
  3. Does your childhood impact how you spend money? Learn how early experiences shape our financial habits and how to break the cycle of your parents' spending patterns.
  4. How do you handle mismatched incomes in a relationship? Get practical advice on navigating the tricky topic of money when one partner earns significantly more than the other.
  5. Is it okay to have some "secret" money? Discover why financial transparency is only sometimes the best policy and learn how to balance shared finances with individual autonomy.
  6. What makes a truly thoughtful gift? This episode goes beyond simply buying a present, exploring the art of gift-giving that reveals your understanding and appreciation for your partner.

Listen to the full episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform. 

Brought to you by Plenty. Plenty is an investment platform designed specifically for couples to build wealth, together. We go beyond budgeting, making it simple to invest, save and grow towards your future goals by unlocking access to the financial strategies of the wealthy.

 

SELECTED LINKS FROM THE EPISODE

Connect with Scott Rick: Website| LinkedIn 

Connect with Emily Luke: Website | LinkedIn | Twitter

Plenty: Website | Instagram | Facebook | YouTube | Twitter/X

 

PEOPLE & RESOURCES MENTIONED

Channing Allen

Ask Ronna

Tight Wads and Spendthrifts: Navigating the Money Minefield in Real Relationships