Money is an integral part of life, and how a couple manages their finances can have a significant impact on their relationship dynamics. When both partners are clear about their financial values and practices, it fosters a sense of security and understanding. Unfortunately, not everyone is transparent with their finances, so financial problems among couples are more common than you might think.

Financial red flags can refer to signs or behaviors related to money that could indicate potential problems, such as poor financial habits or dishonesty about one’s finances. If left unaddressed, these can create rifts in the relationship, making it more difficult to build a stable future together. That said, when these issues are recognized and addressed early on, they can actually strengthen relationships.

In this article, we’ll explore some of these common financial red flags and provide practical advice on how to handle them, like leveraging the best credit card for online shopping in the Philippines.

Red Flag #1: Using One’s Card without Much Thought

For many, credit cards are a convenient way to handle day-to-day expenses. However, relying solely on credit cards for regular purchases, such as groceries or dining out, without a clear plan for paying off the balance, can quickly spiral out of control. When credit card balances aren’t paid off in full each month, the interest charges can pile up, leaving you in a cycle of debt that’s hard to break free from.

The first step in handling this red flag is to prioritize paying off your credit card balance in full each month to avoid interest charges. It’s also a good idea to use a cashback credit card, which offers rewards for purchases you already plan to make in the first place. The Landers Cashback Everywhere Credit Card is a great example. It gives you up to 5% cashback at Landers, 2% on dining spends, and 1% on all other qualified transactions.* To unlock the 5% cashback rate, all you need to do is accumulate PHP 50,000 worth of total spending on your card for the month—that’s not just spending at Landers, but anywhere you pay using your credit card. When used responsibly, the right credit card can help you earn benefits while avoiding unnecessary debt.

Red Flag #2: Frequent Impulsive Buying

Impulsive buying involves making unplanned purchases without considering whether they are necessary or within budget. This often happens during online sales events or when one partner is swept up by limited-time offers. While these purchases may seem like great deals at the moment, over time, they add up and may cause stress on your finances, especially if they go untracked or if the total amount spent exceeds what you can afford.

The best way to address impulsive buying is by being self-aware and setting boundaries. Talk to your partner about the effects of this behavior and how it impacts your financial goals. Together, create a rule where purchases, especially during sales events, are discussed beforehand. You could also implement a "cooling-off" period, where any non-essential item must be held off from being purchased for a day or two to see if it’s really needed.

Additionally, if you or your partner use a credit card for online shopping, make sure to put limits on the purchases. This is easy to do when you use a Maya credit card. Known as the best credit card for online shopping, the Landers Cashback Everywhere Credit Card also has spending control features that help you stay within your budget. In the Maya app, you can assign spending limits to different types of credit card transactions, including online payments, daily spending limits, foreign transactions, contactless payments, and cash advances.

To access and manage your spending limits, follow these steps:

Log in to Maya and go to Cards.
Select your credit card.
Tap the security center to open the Limits and Controls screen.

Red Flag #3: Being Secretive with Purchases

When one partner hides purchases or makes significant financial decisions without consulting the other, it can also be a major red flag. This behavior might involve buying expensive items without telling the other person or using personal accounts to conceal unwarranted splurges. The problem with financial secrecy is that it erodes trust and can create unnecessary tension in a relationship. In some cases, hiding purchases or financial decisions might indicate deeper issues like insecurity or a lack of respect for your partner’s opinions. Over time, this behavior can create a wedge between you two, making it difficult to build a secure and healthy financial future together.

Open communication is key to overcoming financial secrecy. Start by fostering a transparent environment where both partners feel comfortable discussing purchases, no matter how small. It’s important to recognize that no purchase is too insignificant to mention, especially when you’re working toward common financial goals.

Red Flag #4: Debt Denial or Ignoring Financial Issues

Avoiding discussions about debt, refusing to acknowledge its existence, or downplaying its significance are all signs of financial denial. One partner may pretend that debts are not an issue or avoid opening bills, hoping that the problem will somehow resolve itself. However, if debt is ignored, interest will continue to accumulate, and it may eventually affect your credit score, making it difficult to secure loans or even rent a home.

To deal with debt denial, it’s best to have an honest and open dialogue. Sit down with your partner and openly discuss any debts, no matter how small. Acknowledge the issue, and create a plan to pay off debt systematically. It may also help to prioritize high-interest debts first, such as credit card balances. Additionally, you may want to seek professional financial advice if the situation feels overwhelming.

Red Flag #5: Avoiding Financial Planning and Budgeting

When one or both partners avoid discussing finances altogether, it leaves an uncertain future. This can manifest as a lack of budgeting, not saving for long-term goals, or simply avoiding conversations about money because they feel uncomfortable or overwhelmed. The problem is, without financial planning, it's difficult to achieve your dreams or navigate unexpected challenges. You might also find yourself overspending or mismanaging funds if you don’t have a budget.

The solution here is to start small and work together. Begin by setting aside time each month to discuss your finances, both short-term and long-term. You can start by creating a simple budget that outlines your income and expenses, setting clear boundaries for how much you can spend on non-essentials. From there, work together to set financial goals, such as saving for an emergency fund or planning for a big purchase like a home or car.

Financial red flags in a relationship should not be ignored but instead should be viewed as an opportunity to improve communication and build a stronger partnership. It’s also best to address these issues openly and by working together. Remember, don’t be afraid to talk about money as these conversations are essential for your long-term happiness and success as a couple.

*Transactions that don’t qualify include: cash in, cash advance, quasi cash purchases, casinos and gambling, fuel, supermarket, pharmaceuticals, utilities, telco, and government.