Coupons on a first date, yay or nay?

coupon10 300x300 Coupons on a first date, yay or nay?Even romance can’t escape the recession – lately, I’ve been seeing frugal dating tips everywhere. One thing I’ve read is to use a coupon on a first date.

I love eating out, I love good food, and if I can do it for 10% or 20% or 50% off, all the power to me. CB and I have no qualms about busting out a restaurant.com coupon and enjoying a $60 meal for $40, or going to Restaurant Week, or ordering specials. But using coupons on the 293rd date is very different than doing so on a first date.

Using coupons on a first date, especially in a restaurant, a bit awkward to me. ChowHound had a very spirited debate on this matter, with the Yay-coupons coming slightly ahead of the Nay-coupons. I think I’d lean towards Nay to coupons on the first date, and this is why:

  • First date should be the time when you are extra careful to make sure the other person is comfortable. A coupon might give the appearance that someone picked the restaurant only because of the discount, and not because of its great lighting or special tapas or cool drinks menu. Even if that’s not the case (i.e. the asker has a coupon to a great restaurant that he/she already knows and loves), I’d much rather avoid the impression.
  • Most coupons require that you announce the fact that you have a coupon at the beginning of the meal. Some coupons are really hard to figure out. Buy 2 entrees and get an appetizer (but not entrees in the XYZ section) or spend $50 in these categories and get 20% off. The date might feel as if he (or she) must order in a certain way because of the coupon, and that’s not cool.
  • Some waitstaff are not as attentive when you mention that you have a coupon. It’s not right, of course, because people should tip on the original amount so the waiters who provide the same level of service should receive the same tip from a party using a coupon and a party that doesn’t. But I’ve gotten bad service just for only getting water and not the cocktail the waitress pushed, so.. imagine if I used a coupon. Again, having a snippy waiter is something to laugh about when you have been dating the other person for a while, but it can add to the stress on the first date.

The one thing that I don’t like is how using (or not) coupons is seen as an indication of character. For the purpose of simplicity I will make the very general assumption that men tend to ask ladies on dates and women tend to be asked (understanding that there are no hard-and-fast rules and that this gender dynamic rules out gays and lesbians).

In the ChowHound thread most of the comments either said that men who uses coupons are either financially responsible stewards of money or cheap stingy penny-pinchers. And that women who don’t like coupons are gold-diggers who are only out for a free meal ticket. I would never discount someone for using a coupon on a first date, but my personal preference is against it. But coupon is a coupon – you can’t extrapolate that one instance to make assumptions about a person’s whole financial outlook / money management skills (good or bad).

Instead of having my date use a coupon at a more expensive place on a first date, I would much rather have a first date at a cheap neighborhood place or a a taco truck. First dates don’t have to be expensive (seriously – my favorite taco joint sells $0.80 tacos – get 15 of them, grab a bottle of $6 Moscato, and take me on a picnic. I will swoon), but it should be comfortable for both people.

Coupons on first dates can bring mixed reactions, so I say it’s best to wait until the dating relationship is a little further along before those 2 for 1s and buy one get one 50% start coming out. Of course, if both people met on CouponCupid.com, then go forth and coupon!

So.. coupons on a first date. Yay or nay? I’d be very interested in hearing feedback from both guys and gals.

Shopping Online for Shoes (and Everything Else) with Coupons and Cash Back

coupon cactus Shopping Online for Shoes (and Everything Else) with Coupons and Cash BackOnce you’ve whittled your budget down to the bare essentials and figured out every way you can think of to save, consider this: can you shave even a few percent off of almost everything you buy by employing online shopping, coupons, and cash back? That’s exactly what you can do at CouponCactus.com, a site that makes it very easy for you to find the best place to shop, based on the best coupons and cash back combination available.

Just to give you an example: let’s say you were looking to buy your child some shoes for back to school. A couple clicks will take you to Coupon Cactus’ shoes coupons page, where you will find that, among others, there is a Shoes.com coupon for 15% off any order + Free shipping, and Coupon Cactus throws in another 5% cash back. So by taking just 30 seconds to check, you not only saved yourself 20% off on those shoes you would have bought in the store, but you saved yourself a trip to the shoe store altogether.

Here are some other great Stores and coupons to watch out for:

Steve Madden Coupons: 20% Off Orders Over $75 + 5% Cash Back. (Also check out the coupon for 10% off your next order by signing up for Steve Madden’s email newsletter.)

ShoeBuy.com Coupons: 10% Off Any Order, Free Shipping, and 7% Cash Back! (This ShoeBuy.com coupon is a Coupon Cactus exclusive).

It’s completely free to sign up for and use Coupon Cactus. So bookmark the site, sign up for weekly newsletter, and start saving from local stores.

Carnival of Personal Finance: Little Red Riding Hood Edition

little red riding hood 1937 wpa poster p228395300550916239qzz0 400 300x300 Carnival of Personal Finance: Little Red Riding Hood EditionThe story begins…

Once upon a time, at the edge of a great forest lies a little town, filled with gabled houses and small businesses [The Financial Blogger]. In a little house lives a little girl with her mother. The little girl’s favorite clothe was a brilliant red cape. For this reason the townspeople knew her as Little Red Riding Hood. One day, Little Red Riding Hood’s mother decided that her daughter needs to get an education in financial literacy [Family Balance Sheet].  She didn’t want to spend the money for Dave Ramsey courses [Debt Free Adventure], so she sent Little Red to learn from her Granny.

Granny lives in another little village on the other side of the woods. This great forest was called the Forest of Financial Pitfalls, and was filled with dangerous creatures such as bad debt [Richly Reasonable], rent to own contracts [Stumble Forward], refinancing obstacles [Passive Family Income], money myths [Free Money Finance], online money scams [Financially Poor], long-term unemployment [Modern Gal], and the like.

Granny had a tidy little cottage and was able to live quite nicely because of her savings, dividend stocks [Dividend Value] and Social Security benefits [Net Worth Journey]. She was a smart woman who saved her raises [My Wealth Builder], and understood perks and drawbacks of autopay [Narrow Bridge], Fico regulations [Beating Broke], variable interest rate [PT Money], flex spending [Alpha Consumer], government spending [Hope to Prosper], Build America Bonds [Good Financial Cents], and even social media [Realm of Prosperity].  She worked and saved and invested her way from a thousandaire [Thousandaire] to a millionaire [Nicole and Maggie].

So Little Red Riding Hood began her lessons with Granny (which sometimes included Barbie doll role-playing [Monroe on a Budget]). Every week she would stay at Granny’s house, and every weekend she would go home and visit her mother. Granny is very eager for Little Red Riding Hood to develop good financial management skills, so she opened a Roth IRA for kids [The Roth IRA Guide], cautioned her against financial decisions to avoid [Grand Money], and taught her how to stop feeling guilty about little things [Minting Nickels]. Granny was a no-nonsense sort of woman, so she has prepared for her own death [Rabbit Funds] and gotten all her affairs in order.

wolf spying on little red riding hood hg wht  ST 300x300 Carnival of Personal Finance: Little Red Riding Hood EditionThe Big Bad Wolf

As Little Red Riding Hood crossed the Forest on her journey, she would sometimes pass the Big Bad Wolf hiding in the bushes (whom she could smell from a mile away because he had very bad personal hygiene [FruGal]!). Big Bad Wolf hated his budget [Live Real Now], never used coupons [KNS Financial] and spent most of his time wishing for payroll tax holidays [Darwin's Money], winning contests [A Gai Shan Life], having a blog as successful as TechCrunch [Intelligent Speculator], and getting promotions [Finance Your Life] (without actually working for them).  One day, the Big Bad Wolf realized that if he can swindle Granny’s money out from under her, he could be “rich enough” [Financial Odyssey] to never work again.

So, one day, while Granny was out at the market, the Big Bad Wolf went to Granny’s home, and assumed her identity!  When Little Red Riding Hood arrived, she realized that Granny looks very different from how she usually looks. “Of course I am your Granny,” the Big Bad Wolf said. So, Little Red Riding Hood decided to quiz her.

The Test (Editor’s Picks)

“Granny, can you tell me the advantages of online banking [FIRE Finance],” asked Little Red Riding Hood.
“Er, um, well, online banking is… online. Which makes it better than, er, off line,” The Big Bad Wolf stammered.
“Granny, what can you tell me about debt and love [Danielle Liss],” asked Little Red Riding Hood.
“Debt doesn’t matter one iota if you really love each other! The greatest lesson you will ever learn, is to love and be loved in returned!” The Big Bad Wolf answered (for he was a secret admirer of the movie Moulin Rouge)

little red riding hood 2 214x300 Carnival of Personal Finance: Little Red Riding Hood Edition“Granny, can you tell me why do we save? [Watson Inc],” asked Little Red Riding Hood.
“To amass as much money as possible and never spare a penny?” Guessed the Big Bad Wolf.
“Granny, how do you how to balance a checkbook [Dough Roller]?” asked the Little Red Riding Hood.
“You take a the checkbook and put it on a balance, duh!” The Big Bad Wolf answered with a flourish, sure that he had fooled the girl with this answer.

But of course the Little Red Riding Hood was too smart for these types of shenanigans. She threw her cape in his face – temporarily blinding him – then she called the Sheriff of the Forest and had the Big Bad Wolf arrested.

The Education

Little Red Riding Hood, armed with the great education that Granny gave her, went on to live a happy and productive life. In college, Little Red Riding Hood built her credit first with a prepaid card [Prepaid Cards 123], then with the perfect credit card for students [Studenomics]. After she graduated, she got a job that qualified for Federal student loan forgiveness [Money Q&A]. She continued her education by creating her own MBA [Gen Y Wealth]. She made money as an online writer [Money Help for Christians], invested in tech dividends stocks [Dividend Growth Investor], and then later started a home-based business [Spruce Up Your Finances].  All this was possible because Little Red Riding Hood used budgets that worked [Green Panda Treehouse] for her and used credit cards smartly [Oblivious Investor].

Big Bad Wolf’s Punishment

As for the Big Bad Wolf, he bought a season’s pass to the NFL [Bucksome Boomer] and a big vacation (complete with to-and-from airport transportation [Dealerity]) in anticipation of his ill-begotten gains. But he was arrested for trying to steal Granny’s money, participating in disturbing trends [Ask Mr. Credit Card] and for SUI – shopping under the influence [Budgets Are Sexy]. Hope he had trip cancellation insurance! [Wanderlust Journey].

big bad wolf 300x263 Carnival of Personal Finance: Little Red Riding Hood EditionHe was sentenced to a reform camp where he had to learn to be more generous [Squirrelers] (and deduct credit card reward donations appropriately [Bargineering]). He also had to pay back the money he owed to all his friends and neighbors [Blonde and Balanced]. After he was paroled, Big Bad Wolf had to move home with his family (he spent most of his time cleaning his room [Sweating the Big Stuff] and reading how to get girls if you live at home [Financial Samurai]).

cute cottage 300x249 Carnival of Personal Finance: Little Red Riding Hood EditionLife after Granny

After Granny passed away, Little Red Riding Hood used her inheritance to buy a house [Money Under 30] on a corner lot [Len Penzo], and, following Granny’s advice, she insured the home loan [My Personal Finance Journey]. Also thanks to Granny’s instructions, Little Red Riding Hood enjoyed the benefits of being a good credit card customer [Credit Card Offers IQ] all through her life.  Later, when she purchased apartment buildings, she carefully looked at the positives and negatives of property management firms [Passive Income Now].

Once in a while, Little Red Riding Hood dabbled in currency trading [Accumulating Money] at TradeMonster[Consumer Boomer], but her main personal portfolio [Barbara Friedberg PF] always had the right asset allocation [Investor Junkie] in index funds [The Digerati Life], a select number of dividend stock [The Dividend Guy Blog], a small portion in gold [Funny About Money]. Above all, she used technology to help her budget [The Smarter Wallet]. When recessions came, as they are wont to do, Little Red Riding Hood wasn’t one who benefited from the recession [Go Banking Rates], but she didn’t fall into financial ruin either.

After many years have passed, Little Red Riding Hood became Granny Red Riding Hood, and she passed on her lessons to her own daughters and grand-daughter. grandma 300x213 Carnival of Personal Finance: Little Red Riding Hood Edition

Eating Out On Vacations

This weekend CB and I traveled to the absolutely beautiful city of Boston and had a grand ol’ time walking around, meeting up with friends, and eating. Lots and lots of eating.

brunch pic 198x300 Eating Out On VacationsAll this eating has turned into quite an expense. We were in Boston for three full days – in those three days we had:

  • 3 dinners, including a grand lobster dinner at Legal’s Sea Food
  • 5 brunches/lunches (picture on the left is of the crab cake benedict at Stephanie’s on Newberry.  They cost $18 but was 100% worth the price. I can tell that it’s all crab, no filler. Thank you to Saving My Bacon for introducing me to this restaurant!).
  • 2 coffee breaks
  • 1 donut run (can’t pass up Dunkin’ Donuts, can we?)

The total cost of all our meals for two hovered around $350, or around $60 per day, per person. That is much higher than we normally spend, but I tell myself it was a vacation.

What is your philosophy when it comes to eating out on vacations?

Forget the budget and satisfy the senses – after all, it’s a special occasion

OR

Keep the wallet in check to avoid a spending hangover after the trip

I’d like to think I maintain a healthy balance between the two, but when it comes to food and touristy experiences (Duck tours – $65 for two tickets, anyone?), I veer on the side of it’s a vacation!  I did stay in one of the cheapest options I could find in Boston ($140/night hotel), so I gave myself a little more leeway to enjoy the culinary delights the city had to offer.

Business Insurance Experts Premierline Direct

Gen Y, Recession, and Money Attitudes: My first post at LendingTree Blog

As I mentioned a week or so ago, I’ve started contributing to LendingTree’s blog. This means I get to think about personal finance, life, and money (as I do on this blog), but I have the benefit of an amazing editor who pushes me to consider other angles and helps my writing become smoother and more polished.

My first post is on the recession’s impact on twentysomething and thirtysomething attitudes towards saving and spending: we all know the effects of the Great Depression had on our grandparents’ money habits, so what about the Great Recession‘s impact on our habits?  Thanks to everyone who helped me think about the article and contributed their thoughts.

Please go over there and check out Recession Changing Generation Y Money Attitudes.

Then let us know what you think!

The Game Theory of The Bachelor Pad

Game theory is all around us, especially in reality television. The field of game theory “attempts to mathematically capture behavior in strategic situations, or games, in which an individual’s success in making choices depends on the choices of others.” Don’t believe me? Just watch the ending of The Bachelor Pad.

thebachelorpadabc 300x225 The Game Theory of The Bachelor PadI caught the finale of The Bachelor Pad (billed as the “The sexiest participants from the hugely successful “Bachelor” franchise reunite under one roof in a competitive reality series to compete for $250,000″) at a friend’s place. First of all, I am a little glad that there were no pretense of “finding the one for me” a la The Bachelor.

Secondly, since I’ve never seen an episode before this, I got to miss all the drama and instead focus on the neat little game theory twist the producers introduced at the end:  The winners, Dave and Natalie, are awarded $250,000 to share. But wait, how much they ultimately get depends on their choice and the choice of the other winner.

Imagine if you are Dave or Natalie, you have two choices – to “keep” or to “share”.  Without discussing the issue with your co-winner, you must decide whether to:

“Keep” the money for yourself or “Share” the money with the Other Winner.

What to do?

You: Keep the money

You: Share the money

Other Winner: Keep the money

You get $0. Other Winner gets $0. (the money goes to the losing contestants)

You get $0. Other Winner gets $250,000.

Other Winner: Share the money

You get $250,000. Other Winner gets $0

You get $125,000. Other Winner gets $125,000.

As the matrix shows, if you select Keep, you have a 50% chance of getting nothing and a 50% chance of getting $250,000. If you select Share, you have a 50% of getting nothing and a 50% of getting $125,000.

Now, the mathematically smart thing to do here (if you have no knowledge of the other person’s character) is to always select “Keep,” because you are maximizing your chance to get the most money.  But if both people though the same way, then neither of them will get any money.  So it boils down to the assumption: do you think the other winner will Share or Keep? If there is no trust between the two person, then you have nothing to lose by selecting “Keep.”

Still, there seems to be something unsavory about selecting the “Keep” – and besides, if both winners selected Keep, then the audience can say good riddance because then they both would have ended up with $0. But the losing contestants would have been very happy!

Dave and Natalie decided to share in the money. But can you imagine the fury that would erupt if one person selected Keep while the other one selected Share? Game theory – love it!

If you were Dave or Natalie on The Bachelor Pad, what would you choose: Keep or Share?

Three Cups of Tea: Power of One Man and One Dollar

When you look at a dollar bill, what do you see?

three cupscover1 197x300 Three Cups of Tea: Power of One Man and One DollarDo you see 1/4 of a Starbucks latte?  1/3 gallon of gasoline? your current interest from a $100 savings account?  (personally, I see $1 = 4 quarters = 1 load of laundry).  But after I spent the weekend devouring Three Cups of Tea, one dollar come to mean something far more powerful.  Three Cups of Tea, if you haven’t heard of it already, is about the story of Greg Mortensen and his quest to built schools for the children of Pakistan and Afghanistan.  It’s incredible to think one person can have such an effect on thousands of children, just as it is jarring to think that ONE dollar will educate a child for one month in Pakistan or Afghanistan.  $12 will educate a child for a whole year.

I know I am blessed, especially compared to the world at large. I know that what I have managed to achieve and accumulate is partly the result of my efforts, yes, but also – probably much more – due to sheer luck that has made it possible for me to work hard and for that hard work to bear fruit.

Giving to Central Asia Institute

One of my goals for this year was to make “giving” a much more prominent portion of my finances. When I found out about Greg’s Central Asia Institute, it became crystal clear where I want to become a regular contributor.  His charity combines everything that I am passionate about: education, women’s economic development, breaking the cycle of poverty. So I decided upon $20 a month commitment, which according to CAI’s calculations, should help educate 240 girls per year. Where else can I get that type of “charitable bang” for my buck?

If you are interested in supporting CAI and girl’s education in Afghanistan and Pakistan, I encourage you to take a look at CAI’s website, and then check out their ratings on Charity Navigator, Charity Watch, and Better Business Bureau.   As you will see, there are concerns about CAI’s transparency and heavy reliance on Greg Mortensen, the co-founder. I chose to donate despite the concerns because I think CAI is going through a somewhat bumpy expansion / transition process as it grows from a one-man shop with limited exposure to a well-known organization because of Greg Mortensen / Three Cups of Tea’s recent rise in popularity. I will continue to monitor the reviews, but for now I am comfortable with my donation.

Life Without a Budget: 4 Questions to Ask

Life without a budget might sound like a financial disaster, but it’s working out okay for me.  Well, the “without a budget” part isn’t strictly true – I don’t spend more than I make, and I have make sure my fixed costs (rent, car, internet) are in line with what I can afford to pay. Still, I don’t follow a strict budget nor do I keep track of where every penny goes.  If someone ask me how much I have spent on eating out last month, she would have received “too much” and then a blank stare as her answer.

Do you think you can live a life without a budget?  The way I see it, this type of more hands-off financial management works for people who can answer affirmatively to 4 questions.

1. Do you pay yourself first using automatic savings?

If you put 15% of your money into 401K and Roth IRA every month, that money won’t be around for you to spend it. Same thing with automatic savings to emergency fund or to long-term objectives. It’s the oldest (and most beautiful!) trick in the book to prevent self-sabotage of saving goals.

2. Are you debt-free or have manageable debt?

People who are focused on paying down large amount of debt in a short period of time will achieve success with Dave Ramsey’s gazelle intensity. If you are intent on sending every penny to credit card companies or mortgage bankers, you need a budget to know where every penny is going.

3. Do you make enough money for necessities?

Basic needs such as nutritious groceries, reliable transportation, and adequate housing tend to take up a large percentage of a lower-income worker’s pay than a high-income worker’s. A $20,000 worker will probably need to keep a very close eye on his/her expenses. A $100,000 worker have more flexibility (if that person doesn’t live above his/her means), and that includes the flexibility not have a budget.

4. Do you keep spending level below your income?

Someone who has a tendency to spend more than his/her income should always keep track of their spending. If you are happily bumping along a certain level of expenses and find it manageable given your savings goals, however, then a strict budget may not offer as much value.

Do you agree / disagree with what I’ve written? Do you live a life without a budget?

Fall Fashion Picks from Boden USA

Haven’t heard of BodenUSA? Up until a few weeks ago, I haven’t either. Then they sent me a catalog and I was enticed into their web of color and style. Don’t click on the link unless you have exceptionally good self-control (don’t say I didn’t warn you).  Boden is a UK retailer who has been in business since the early 1990s. They recently made a big push to get into the US market, hence the updated website (with US sizes) and all the catalogs.

I’ve selected a few of my favorite pieces.  Instead of actually purchasing these clothes, I shall just share them with you instead. And if you do decide to get something, I can live vicariously through you! icon biggrin Fall Fashion Picks from Boden USA   By the way, I have never seen any Boden clothes in person, but they purportedly have good quality clothes.  I’d say the pricing is between Banana Republic and J.Crew, but cheaper than Anthropologie.

The styling is lovely – a great balance between classic and ladylike without veering too deeply into girly territory. I also appreciated the variety of purples and plums featured here. Deeper shades of purple can be a great “base” color like black or gray (let me stop before I talk myself into buying that sweater dress).  If you would like to purchase all of the items below, they can become a permanent part of your wardrobe for a mere $842.

Boden peeptoe 231x300 Fall Fashion Picks from Boden USA

Boden Chic Peep Toes in Black/Grape, $148

Boden wellheeled boots 231x300 Fall Fashion Picks from Boden USA

Boden Well Heeled Boots in Brown, $270 (I had to include this one just because of the name!)

Boden relaxed skirt 231x300 Fall Fashion Picks from Boden USA

Boden Relaxed Casual Skirt in Coral, $68

boden merino dress 231x300 Fall Fashion Picks from Boden USA

Boden Merino Roll Neck Dress in Aubergine, $108

boden jacket navy 231x300 Fall Fashion Picks from Boden USA

Boden Soho Jacket in Light Navy, $160

boden rosette cardigan 231x300 Fall Fashion Picks from Boden USA

Boden Rosette Ribbon Cardigan in Magenta, $88

Buy Back My Clothes Experiment & Giveaway

Lately, I have gotten into reading minimalist blogs and fashion blogs.  The former instills in me an urge to get rid of all my stuff and lead a simpler, less cluttered life and the latter makes me want to buy a whole new wardrobe for a more stylish me. Oops.

Instead, I decided to do something different. I’ve read that if you are having trouble deciding what to keep and what to donate / throw away, try this little experiment:

  • Pretend that all the clothes you own are on sale.
  • If you want to keep particular piece of clothing (say, a sweater, a skirt, or a pair of jeans), you must spend $1 to “buy back” the clothes.
  • If you are not willing to spend even a dollar on something, it’s a fairly good sign that that item isn’t doing much for you.

That is what I will do. Every piece of clothing and every pair of shoes will go through the same treatment: Am I willing to pay $2 to “buy it back?” All the money that I am willing to spend to buy back my clothing will go into my Galapagos Fund.

If you would like to join in on the Great Buy Back My Clothes Experiment:

Leave a comment with the following information: (1) the dollar amount of each piece you are buying back – I chose $2, but it’s all up to you, (2) where the money you spend buying back your clothes will go, (3) what is the one piece of clothing / accessories you’d like to add to your wardrobe.

Submit a picture of your outfit (state how much you “bought it back for”) to me by Wednesday, September 22. I will put up the pictures and let the readers vote on the best outfit.  On Wednesday October 6, I will announce the winner, who will receive a $25 gift card to TJ Maxx or Marshalls, thanks to the generous PR folks over there.

Best of Blogs Link Roundup: Labor Day 2010

Blog & personal updates

  • First off, congratulations to the winner of the $60 CSN giveaway: Laura @ So alaurable! I will email you on how to redeem your prize.  Thank you to everyone who entered.
  • In other news, I will be doing some writing for the LendingTree blog. So this Labor Day I am working on an article about the Great Recession and Gen Y’s response. Getting paid to think and write about personal finance and Generation Y issues?  How did I get so lucky. icon wink Best of Blogs Link Roundup: Labor Day 2010
  • I have gotten a few emails from readers about an RSS error. My apologies. I have since fixed the link but here it is if you want to sign up for RSS: http://wellheeledblog.com/feed
  • My retirement portfolio has gotten to the point that a few bps up or down can have real consequences for the value of my funds. I am in it to win it (over the long haul), but now I understand why it can be so difficult to tune out the noise, especially for people with serious money in the market.
  • After more than 3 months away, I have recently gotten back into tango classes and milongas. My strength (and, I even venture to say, grace) is returning. Just another reminder to myself that 1. we should always make time for the things that bring us joy, and 2. it’s never too late to start (or to re-start) doing what we love.

Good reads from the blogosphere

Debt is the Kiss of Death for a Relationship?

debt and love Debt is the Kiss of Death for a Relationship?Debt isn’t just hazardous to your financial well-being, it can destroy your relationships as well.  Just ask one young lady featured in today’s New York Times article.  Three days after she divulged to her fiance that she had over $170,000 in student debt, he broke off the engagement.  For her future relationships, she decides that she needs to share that information much sooner, because it can be a “deal-breaker.”

Still, all of this raises the question: At what point do you have a moral obligation to disclose your indebtedness during courtship? On the eighth date? When you get to third base? In your eHarmony online dating profile?

“It’s a sliding scale,” said Ms. Riesel, the Manhattan lawyer. “It depends on the person and the nature of the relationship.” Ms. Winters, the Short Hills divorce lawyer, said it might depend on your definition of a serious relationship. “But I wouldn’t wait until you were signing leases for apartments or picking out engagement rings.”

With a dual-career couple, it’s not unsurprising to have combined debt levels of hundreds of thousands of dollars. An MBA and a doctor, or a pair of lawyers, for example, can easily graduate with over half a million dollars after their studies.  If both CB and I attend graduate school as planned, we will probably come out with around $100,000-$150,000 in individual debt loads, baring any unexpected windfalls (ahem, lottery, anyone?).  It makes a little easier knowing that any significant debt we incur will be when we are in a relationship together, so no one is blindsided by the topic.

I wonder, though, is there a dollar amount of my significant other’s debt at which I would “walk away” from an otherwise loving and secure relationship?  I would say no.  But I have never been in a situation similar to what was profiled in the New York Times.

Before a relationship gets serious, I believe in a frank discussion about finances, especially on the debt burden, is certainly in order. Whipping out your student loan statement or your credit report is a bit of a mood-killer, so I’d save that discussion until at least the third date! icon wink Debt is the Kiss of Death for a Relationship?

Questions for readers:

1. If you have significant debt, at what point would you share that information with your significant other?

2. If you are dating someone who has significant debt, at what point do you expect or would want to know that information?

3. Is there an debt amount that is a deal-breaker?

Photo by Sean Hering Photography via Flickr