Asking your new love interest about her or his finances is usually considered a major faux pas. But while some numbers are off limits, there are some you need to know if you’re considering getting serious, BMO Harris Bank suggests.
Credit Score
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.
Debt
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 signal 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.
Read: FCAC adds financial resources for couples
Net Worth
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.
Savings
It’s a good sign if your partner is investing in a work-sponsored 401(k) plan, individual retirement account and putting away 10% 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.
Read: Getting couples on track