The 5 Financial Warning Signs to Watch Out for While Dating

Today’s excellent article focusing on YOUR finances is provided by Joel Ohman who is a Certified Financial Planner™ and serial entrepreneur. One of the projects that he has been working on lately include consumer financial education websites for learning about insurance plans and finding the very best insurance provider.

Did you know that according to the Barna Research Group that 80% of divorced people indicate that financial issues played a primary role in ending their marriage? This sobering statistic certainly highlights the importance of evaluating the money habits of a potential partner. Here are 5 financial warnings signs that you should be on the lookout for when dating:

#1 A Focus on the Short Term

An early warning sign of serious down the road financial difficulties is when a potential mate lacks the foresight to plan ahead but rather concentrates only on the short term. Some different ways that this may manifest is a willingness to blow one’s paycheck on the latest and greatest electronics, fashion, etc. even when knowing full well that they do not have an emergency fund or savings account in place.

#2 A Desire to Mimic the Wealthy

You probably already have a picture in your head of the type of person that is all flash and no substance when it comes to their finances. Pair of $400 jeans – check. Pair of $300 designer sunglasses – check. Pair of savings/retirement accounts – not a chance. While it can be easy to get sucked up into the lifestyle of wanting to dress for success so to speak it is much more important to live within your means and choose a spouse that understands how to live within their means as well.

#3 A Lack of Basic Financial Knowledge

It’s unfortunate that many high schools and colleges don’t offer basic personal finance classes.

The onus for learning solid financial principles is on the individual. If a potential mate wouldn’t know the difference between a stock and a bond if it hit them in the head and more importantly has no desire to even bother to learn then major red flags should start to fly in your mind. Every responsible adult should have at least a basic understanding of various financial products like credit cards, auto insurance, etc. and how to use them responsibly.

#4 A Pattern of Trying Hard to Impress You Financially

Unless you are on a date with someone that is very well off financially and rightfully deserves to spend some of their hard earned money in an attempt to show you a great time then watch out for those who attempt to show off in a manner that they cannot afford. If you are dating someone with a flashy BMW and you find out that they still live with their parents and work at a low paying job then that might be a gigantic clue that they are overly concerned with giving you a false sense of their financial well being. It’s certainly not wrong to want to put your best foot forward but if you get the sense that your love interest is attempting to impress you by misleading you about their financial status then watch out!

#5 A Secretive Approach to Handling Their Finances

Privacy and discretion when it comes to financial issues is good to a certain

extent but if your boyfriend or girlfriend is overly secretive to the point of not wanting to involve you in any of the financial decision making then it could very well be the signal of some deeper problem. It’s not uncommon for those with deep, dark financial secret (i.e. gambling losses, massive credit card debt, etc.) to attempt to clam up about their finances and cover their tracks by trying to keep you in the dark. Watch out for this type of secretive behavior to guard yourself from potential heartbreak down the road (i.e. when dating it may not affect you a great deal if your boyfriend or girlfriend gambles away their savings but if you marry and they gamble away the money you had been saving for a down payment on a house then it quickly becomes a very real and very personal problem).

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What do YOU Think?

What other financial warning signs are there to watch out for while dating?