Saving as a couple, an option to mitigate the effects of inflation

Inflation has yet to subside, and therefore continues to affect household finances. However, one suggestion to mitigate the ravages of inflation is to plan your money as a couple.

Saving as a couple in the face of inflation

It has been essential for couples to readjust their budgets and joint expenses, as it has been reported that electricity, air travel, toll booth fees, and basic food items such as eggs will continue to increase, according to analysts. This year, 2023, has begun with an annual inflation rate of 7.91% in Mexico, which was the highest level for a January in 22 years in Mexico, and where food prices have particularly risen. The National Council for the Evaluation of Social Development Policy (Coneval) reported that in January, purchasing a basic food basket cost 2,144 pesos in urban areas, while in rural areas, 1,644 $ were needed per person. For a relationship to work, emotional responsibility and mutual respect are fundamental elements, but so are economic balance and good financial organization, “Learn and Grow. The more clearly we discuss monetary matters before starting a relationship and throughout the relationship, the better; it will be less of a source of problems, especially in complex times like inflation”.

A few days ago, private sector experts consulted by the Bank of Mexico revised their inflation forecast for 2025 upward. They raised their estimate for inflation at the end of 2024 to 5.18% from 5.10%.This will impact household spending patterns, as the 2020 National Household Income and Expenditure Survey, conducted by the National Institute of Statistics and Geography (INEGI), revealed that Mexicans spent 38% of their income on food and beverages ; 18.6% on transportation; and 11% on housing, energy, and fuel.

Why is it important to save in times of inflation?

While saving is important because it provides security and peace of mind; it helps with unexpected events; it opens the door to achieving financial goals; it prevents debt and creates the opportunity to achieve financial freedom.”For a relationship to last, couples must have common goals and mutual support to achieve their projects, as something shared has a better chance of success. To pursue your financial goals, you and your partner need to be on the same page,” the bank explained.

How to plan expenses and savings as a couple

Both “Learn and Grow” and BBVA recommend these tips for organizing and achieving optimal financial control as a couple.

Dialogue on financial compatibility.

In addition to sharing interests, passions, and goals, a shared understanding of financial goals could bring you closer together. Working together toward the same goals will make you a stronger and more successful team, so try to apply concepts like saving and investing together.

Create your budget and divide expenses.

Be clear about the fixed and variable expenses you share each month; this will make it easier to identify your priorities. If you both work, be transparent about how much you earn and, with this information, define the amount you will allocate to each household maintenance item and who will cover which.

Prioritize expenses and use credit wisely.

If necessary, reconsider your budget and prioritize, considering that there may be times when you need to implement emergency measures and cut back on “luxuries” or wants, sticking to the bare minimum, since inflation has also increased interest rates on bank loans and credits.

Set realistic financial goals.

One thing you should discuss, negotiate, and decide together is how you will allocate the reserve income. Reaching agreements can be complex, but if achieved, the results could be pleasing.

Define the time to achieve it

Couples typically divide their savings into three categories: short-term savings, which can be used to achieve small goals; medium-term savings, for more complex objectives; and long-term savings, for planning for the coming years, such as retirement.