The Rational Reminder Podcast

Episode 288 - Scott Rick: Navigating the Money Minefield in Real Relationships

Jan 18, 2024

59:45

Snipd AI

Marketing Professor and Author, Scott Rick, discusses the psychology of tightwad and spendthrift behaviors, the impact on relationships, financial infidelity, joint and individual accounts, gift-giving, marrying for love or money, giving kids a good financial education, and more in his book Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships.

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Quick takeaways

Money plays a significant role in romantic relationships and can lead to arguments and divorce.

Different bank account structures can affect household spending and promote transparency and individuality in relationships.

Gift giving should be thoughtful and meaningful, demonstrating understanding and love rather than simply asking what the partner wants.

Deep dives

Understanding the Relationship Between Money and Relationships

In this episode, Scott Rick, author of the book 'Tightwads and Spendthrifts: Navigating the Money Mind Field in Real Relationships,' discusses the importance of navigating money in relationships. He emphasizes that money plays a significant role in the quality of a romantic relationship and, in some cases, can lead to arguments and divorce. Scott defines the terms 'tightwad' and 'spendthrift' and explains the psychological mechanisms behind these spending behaviors. He also suggests ways for tightwads to loosen up their spending and for spendthrifts to tighten up their spending habits. Scott highlights the role of joint bank accounts and the importance of communication and understanding in gift-giving. He also offers insights on how parents can teach their children about money and provides advice on navigating financial disagreements within relationships.

Introduction

2min

Exploring the Fraught Relationship People Have with Money

2min

Money Habits and Relationship Dynamics

21min

The Impact of Mismatched Financial Attitudes on Relationships

10min

Financial Infidelity in Marriage: Exploring Definitions and Behaviors

8min

Gift-giving and Communication in Relationships

3min

How Children Learn about Money from Their Parents

13min

Tightwads are more likely to hold onto their money even when there is more than enough to spend, whilst spendthrifts will drain their bank account of its very last cent. So, which one are you, and how does that impact your relationships? Joining us today is the remarkable Marketing Professor and Author, Scott Rick. Scott has just penned a new book, Tightwads and Spendthrifts: Navigating the Money Minefield in Real Relationships, which serves as a guide for finding happiness while steering through money and love. To kick-start our conversation, Scott summarizes the relationship that people generally have with money, followed by a deeper exploration of the terms “tightwad” and “spendthrift”. We break down the psychology of tightwad and spendthrift behaviours, how these two personality types interact with one another in relationships, the myths of financial infidelity and transparency, and how bank account structures (joint and individual accounts) dictate how money flows in a relationship. We also assess the roles of financial advisors and gift-giving within relationships before Scott shares his thoughts on marrying for money versus marrying for love, how to give your kids the best financial education, and what he hopes every reader will gain from the truly fascinating and informative, Tightwads and Spendthrifts!

Key Points From This Episode:

(0:00:33) Introducing the incredible Marketing Professor and Author, Scott Rick.

(0:03:08) Scott’s summation of the relationship that people have with money.

(0:04:47)Diving into his latest book: Tightwads and Spendthrifts, and exploring each term.

(0:13:16) Assessing the psychology behind tightwad and spendthrift behaviours.

(0:18:58) The role of financial advisors.

(0:21:15) What spendthrifts and tightwads can do to balance their money scales.

(0:23:34) How tightwads and spendthrifts interact in romantic relationships.

(0:32:10) The way bank account structures affect how money flows in a relationship.

(0:35:39) Debunking financial infidelity and the downsides of total financial transparency.

(0:41:04) The ins and outs of joint bank accounts versus individual accounts in relationships.

(0:42:20) Gift-giving and relationships.