Love & other assets

The money talk with Emily Garbinsky

Episode Summary

In this episode of Love & other assets, Emily Luk interviews Dr. Emily Garbinsky, a behavioral scientist from Cornell University, who shares insights on how couples' financial decisions impact their relationships. They discuss the importance of communication about finances, the benefits of pooling finances, and strategies for making money conversations more productive and less stressful.

Episode Notes

In this episode of Love & other assets, Emily Luk, CEO and co-founder of Plenty, interviews Emily Garbinsky, an associate professor of marketing and behavioral scientist at Cornell University. Dr. Garbinsky specializes in understanding how couples make financial decisions and creating interventions to help them make better choices.

The conversation delves into Dr. Garbinsky's research, which has revealed a fascinating insight: couples who pool their finances feel a stronger need to justify purchases to their partner, leading them to prioritize utilitarian goods over hedonistic ones. This finding underscores the importance of financial communication in relationships. 

Dr. Garbinsky highlights a crucial question about a couple's communication style: do they perceive financial conflicts as solvable or perpetual? She emphasizes that viewing conflicts as solvable encourages open dialogue about money, leading to better communication and compromise.

The conversation explores strategies for fostering a more positive perspective on financial conflicts, including remembering past instances of successful financial compromises. Dr. Garbinsky also discusses the challenges of discussing financial stress, attributing them to societal taboos around money and the perception that financial discussions are more likely to lead to arguments.

The episode also discusses the benefits of pooling finances, with Dr. Garbinsky noting that couples who share finances are more likely to stay together. She emphasizes the importance of creating a sense of "financial togetherness" regardless of whether finances are combined or separate. Dr. Garbinsky shares valuable insights on how couples can best manage their finances, have open communication about money, and share responsibility. 

What we discussed: 

• Do couples who pool their finances make different spending choices? Dr. Garbinsky reveals a surprising finding: couples who share bank accounts feel a stronger need to justify purchases, leading them to choose more practical products over fun ones.
• Is there a simple question that reveals how well couples communicate about money? Dr. Garbinsky shares a key insight: the way couples view financial conflicts (as solvable or perpetual) directly impacts their willingness to talk about money.
• Can remembering past financial successes change how you view arguments about money? Discover how Dr. Garbinsky suggests using past financial compromises to shift your mindset and make financial discussions less stressful.
• Why are financial conversations so difficult for many couples? Dr. Garbinsky explores the deeper reasons why couples avoid discussing money, including societal taboos and the fear of conflict.
• Is there a simple trick to making financial conversations more enjoyable? Dr. Garbinsky shares a technique she uses with her partner to start financial discussions on a positive note, setting the stage for a productive conversation.
• Do couples who pool their finances stay together longer? Dr. Garbinsky explains how sharing finances can promote a sense of "financial togetherness" and contribute to greater relationship satisfaction.

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 Dr. Emily Garbinsky: Website |Google Scholar

Connect with Emily Luke: Website | LinkedIn | Twitter

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

PEOPLE & RESOURCES MENTIONED

Channing Allen

Boulder Summer Conference on Consumer Financial Decision Making

UBS Study

Rick Steves travel book on Vienna and Salzburg

Dr. Garbinsky's research on couples' financial decisions

Dr. Joe Gladstone

John Gottman

John Lynch & Adrian Ward: You're the 'Money Person' in Your Relationship?