When looking at relationships, economic conflicts are often more severe than other types of conflicts because they are often more intense and longer-lasting. One factor that can be a tool in avoiding or causing economic conflicts is the way couples pool their money. This is particularly relevant when looking at different life course stages because the partners’ and couple’s needs and commitments change over time. The degree of pooling that was suitable at the beginning of a relationship may not be so later on, and therefore, the likelihood that it will relate to economic conflicts may also change. At different ages, more or less pooling of resources may be the best strategy to avoid economic conflicts. Additionally, and perhaps most importantly, the best money management may depend on the level of resources available.
To address these queries, Ann-Zofie Duvander and Linda Kridahl (Stockholm University) investigate how the degree of pooling relates to economic conflicts among couples aged 20 to 80. Their analysis draws on the Swedish GGS 2012/2013 in which one in five couples reported economic conflicts. Of the couples studied, the largest share pool their money; however, a substantial share only partially pool their money or keep it completely separate. The results show that separate money has the highest probability of economic conflicts, followed by partial pooling. Pooling money is least related to economic conflicts. Couples who have difficulties making ends meet are five times more likely to report economic conflicts. The older the couples are and the longer the couples have been together, the lower the probability of reporting economic conflicts
The results further show that couples aged 20-29 who keep their money separate are least likely to report economic conflicts, but, among middle-aged couples, money management does not matter in determining the frequency of economic conflicts. Older couples (50-80) are most likely to report conflicts if they do not pool their money, particularly among the oldest-old (70-80) couples for which any separate money is least beneficial. Similarly, couples who have difficulties making ends meet benefit least from keeping money separated, followed by partial pooling.
The authors conclude that sometimes it is taken for granted that couples who live together pool money. At different life course stages, and with potential stressors in life, the degree to which pooling matters has different effects. Keeping money separate suggests less communication or the partners’ needs for economic independence. Pooling can instead be an indicator of stability and team spirit. In situations with economic hardship, such as among older couples or couples with difficulties making ends meet, pooling may create a sense of economic security, leading to less friction between partners. At the same time, the expenses may be so greatly intertwined among middle-aged couples that the degree of pooling does not matter. Younger couples often have fewer joint investments and may therefore value keeping their money separate. Long-term couples have had time to adapted to each other and have learned to cooperate. Future investigations may further analyse how some couples are more resilient to stressful situations than others.