Financial management requires a lot of discipline. It is not just about how much money you earn, but how consistently you make informed decisions, follow a clear strategy and stick to a realistic plan for managing your income and expenses.
It is the smallest decisions, such as packing a lunchbox four times a week and buying lunch only once, that make the difference.
It is about doing weekly meal preps to avoid getting home, switching between channels and eventually ordering a takeaway.
In a country where many households are under pressure from the rising cost of living, mastering the basics of financial management is an essential life skill, even more so when you have a significant other.
Strong money skills are your shield against debt traps and your ticket to real, long-term financial freedom.
National Debt Counselling Association chairperson René Moonsamy says there is often talk about the emotional and mental toll of unhealthy relationships, but rarely about how the wrong relationship choices can drain your bank account and derail your financial future.
“Financial stress in relationships, often caused by well-intentioned but poorly understood financial decisions made in the name of love, can quietly undermine both partners’ financial security long before the warning signs are recognised,” says Moonsamy.
“Look beyond romantic gestures and consider the long-term financial implications of relationship choices — and how the wrong ones can lead couples into serious debt trouble.
“People don’t always realise how undisclosed debt, credit obtained on behalf of others or credit taken out during a previous relationship can cause tension between even the most lovestruck couples.”
Moonsamy says if you take out credit on behalf of a loved one, the legal liability for repaying it lies with you, as your name is on the credit agreement.
“You remain responsible, even if the other person has agreed to make the repayments. Credit follows the contract, not the relationship and emotional agreements between parties have no legal standing,” she warns.
“If you take out credit on behalf of someone you love and they miss repayments, it will negatively affect your credit record [not theirs]. This may limit your access to further credit or result in you having to pay higher interest rates because you are deemed to be a higher risk.
“A second consideration is that old debt and new relationships can be a toxic combination. This occurs when debt incurred in a previous relationship follows someone into a new one. It can strain the relationship, particularly if the person who owes the money attempts to hide it and their partner finds out.
“An example of how this can happen is where credit is granted based on a combined household income. If the relationship ends and one of the partners stops paying their share, the primary debtor is left carrying the full expense burden, financial strain and risk of over-indebtedness into any subsequent relationship.”
Moonsamy says there are misconceptions that divorce decrees remove liability, but they don’t.
“While divorce orders may allocate responsibility between spouses, they do not bind credit providers. Where there is joint debt, both parties may remain liable, even after the relationship has legally ended,” she says.
Where there is joint debt, both parties may remain liable, even after the relationship has legally ended.
— René Moonsamy
“It is also essential to understand the marriage regime applicable in South African law, as this decides how assets and debt are treated in the event of a divorce. If you have not signed an ante-nuptial contract in front of an attorney before getting married, then you are married in community of property.
“This means you and your spouse share assets and liabilities. If one partner is struggling with debt, both are affected. An ante-nuptial agreement means you are married out of community of property and your assets and liabilities are kept separate. There are two types of agreements: with and without accrual.
“Accrual ensures separate ownership of assets and liabilities during the marriage, while allowing for shared growth in the value of the estates. If there is no accrual, assets and liabilities are kept completely separate, and there is no shared growth in asset value.”
Moonsamy’s advice to help couples navigate their finances:
- Have honest, upfront conversations to prevent long-term damage;
- Understand each other’s financial priorities to avoid later conflict;
- Work towards common financial goals to strengthen your relationship;
- Agree on spending limits;
- Get help if you feel you need it; and
- If you’re planning to get married, understand the implications of being married in or out of community of property and the distinction between the two types of ante-nuptial contract.
