Relationship prospects impacted by finances for many

A new poll suggests that for a considerable number of Albertans, money management is something they take into consideration before deciding about whether or not to settle down with someone.

The survey, conducted by TD Canada Trust, found that 80 per cent of Albertans indicated that they would not marry someone if they knew beforehand that they were bad at handling their personal finances or had sizable amounts of debt.

Not only were respondents hesitant to marry individuals who had poor money management skills, but some suggested they wouldn't even bother dating them. Nearly 40 per cent of Albertans polled said they wouldn't date someone whose finances were in rough shape. Fourteen per cent said they'd been in a previous relationship where the person they were dating had finances that were out of control and would therefore be hesitant about entering a similar situation.

Shawnette Fraser, manager of customer experience at TD Canada Trust, noted the impact money management can have on personal relationships.

"Whether you're moving in together or getting married, you each contribute something to the relationship including savings, investments and debt," said Fraser. "Opening up about your finances - not to mention actually sharing your assets and liabilities - can be a challenging notion for some."

The reason why some people may have poor money skills may be related to some misconceptions they have about how financial planning impacts their retirement. In fact, a recent Angus Reid poll found that the majority of Canadians didn't feel secure in their retirement.

For instance, according to Crystal Wong, senior region manager of TD Waterhouse Financial Planning, a common belief many Canadians have is believing they should focus on eliminating debts, like mortgage and credit card debt, before they start thinking about retirement. But Wong notes that saving and reducing debt are not mutually exclusive.

"It's important to pay down as much debt as possible before retiring, but it's also essential to strike a balance between reducing debt and saving for retirement," said Wong.

She added that once one's financial situation and retirement goals have been established, it may be a good idea to meet with a money management advisor so a savings plan can be put into motion.

Another misconception some Canadians have is the belief that they will have fewer expenses to pay for as they get older. In fact, recent surveys of retired Canadians suggest just the opposite, as retirees often said they were surprised by the number of expenses they had, Wong indicated. This is another reason why retirees may want to meet with a financial advisor prior to retirement, as they may be able to help figure out how day-to-day living costs can be paid for.

One way of going about this may be through investing, and according to the TD Canada Trust poll, Albertans like to do this is in concert with their significant other. According to the poll, out of all Canadians, Albertans are the least likely to invest alone, as just 19 per cent of them keep their finances separate from their spouse or partner. This contrasts sharply with the 33 per cent average of Canadians who invest alone.