Talking money with your spouse during Coronavirus

The Coronavirus has turned our lives upside down. Most of us are worried about our health, protecting our families and staying safe.

And then others of us are also worried about money.

In a bid to get a handle on this pandemic, governments around the world, and rightfully so, have closed their borders and ordered folks to stay in. This has effectively shut us down.

A real effect of Coronavirus facing many families today is uncertainty about the future.  If you are a part of an industry that has been severely affected, you, like me, are asking your spouse and how the hell do we stay afloat? Talking money with your spouse during Coronavirus is now a top priority.

For many of us, this pandemic is not just a health crisis, it’s a financial one.

Many companies have already started laying off workers and shutting down. Looking at the current trend, it is obvious that it will get a lot worse before it gets better. In Jamaica, the tourism industry is at a standstill. Hotels are shutting down, thousands of workers have been sent home, attractions are closed, and tours have halted. This represents thousands of people who are the primary bread winners of their families.

Many families are now scrambling to figure out how they will get through the next few months. Most couples rely on both spouse’s income to take care of their finances and run their households. I am half of one such unit. I also depend heavily on tourism, so this conversation is real to me.

Let’s face it, even under normal circumstances, talking money with your spouse is not necessarily the easiest conversation to have.  Now add a global pandemic in the mix and most couples will agree that it gets more stressful.

 We are by no means financial experts, but as a couple affected by this pandemic, here is our approach:

Open and frank discussion on the state of our finances.

I am a natural worrier. The Coronavirus is like gasoline to my anxiety as I conjure up all types of scenarios if the present situation continues. The possibility of losing a significant portion or all of one’s income is scary, but there is no point in burying our heads in the sand. Do we have enough money? Can we survive this? Sharing these fears out loud with my ever-optimistic and pragmatic spouse has helped me to calm down and relax… even if only a little.

Checking in on emergency funds.

Remember when they told us to save for a rainy day? Well, hello!!!! This is a rainy day.  I can’t be the only one who is checking every single bank/investment account to see how much cash we can potentially access if we need it.

Experts say you should have about 3 to 6 months of your monthly expenses in reserve to handle the unexpected. For most of us, that’s a dream. Living from paycheck-to-paycheck is the harsh reality of people all over the world, so losing even one month’s income can be devasting on most households.

I would say, right now is the time to take a cold hard look on your emergency savings and get ready to pull on it as every little bit will count.  

Talk job security.

We joke all the time that while hubby may have one of the most stressful jobs it is one of the most secure jobs. Coronavirus has made job security a real issue for so many of us. Have the conversation now. If one spouse should lose their job, can the other afford to cover all the family expenses? How long will the emergency savings last? Do they qualify for any unemployment benefits (see SET below) and will they be willing to access it?

Apply for government benefits.  

The government recently launched its $10 billion COVID Allocation of Resources for Employees (CARE) Programme. This programme provides a range of assistance to individuals and small businesses hard hit by COVID-19.  

The most relevant programme to our discussions may be the Supporting Employees with Transfer of Cash (SET Cash) Programme. SET Cash will provide $9,000.00 per fortnight up to a maximum of $54,000.00 to individuals who have lost their jobs on or after March 10, 2020, and before June 30, 2020.

There is a catch. In order to qualify, you must be earning $1.5 Million or less per annum and your employer must upload a P45 form in order to verify this. This is clearly not a lot of money, but if you qualify, you should apply as ‘every mickle makes a muckle’.

There are also other grants, such as the COVID 19 Small Business Grant, Tourism Grant and the COVID 19 General Grant which may be more applicable if you are an entrepreneur and especially if you are in the hard-hit tourism industry. Explore and apply if you qualify.

Cut expenses and plan an emergency budget.

I feel a bit hypocritical even writing this because in my house this translates to a lot of me yelling, “Hell no, we don’t need that!” I have adopted the phrase “non-essential” as I passionately believe in cancelling spending on all non-essential goods and services. Hubby thinks I am overreacting since he thinks many things are essential (read: ultra-soft Charmin toilet paper) this is an ongoing battle.

Battle aside now is the time to cut expenses and tighten our belts. Review all your expenses and see what can be eliminated because no one knows how long this pandemic will last.

Pay your bills but negotiate with your creditors.  

Almost every financial institution is offering some form of relief for customers during this time. Take advantage of it. Most are offering a moratorium on loans for at least 3 months. Others are waiving credit card fees and interest. Talk to your spouse and together reach out to your bank to find out what relief they are providing and how can you benefit. If you have taken a pay cut or have lost your job, not having to pay those bills can come in real handy right now.

Negotiate with your landlord.

Don't bother trying if you are always late with your rent as your landlord will not take you seriously.  But, if you have been diligently paying your rent on time, only a cold-hearted landlord would not cut you some slack right now. You cannot reasonably expect to live for free but do discuss whether your landlord is amenable to offering a discount for the period, a payment plan or part payment until things are back to normal. If you can get this commitment in writing, awesome!

Talk to service providers.

Aside from food, our utilities such as light, water and internet are now critical so try to pay those if you can. Some service providers have implemented their own relief/leniency programme. For example, NWC has promised no disconnection during this time. JPS established a COVID-19 relief fund which promised no disconnection for April and May and a one time credit of $5000.00 for qualified individuals.  

The point is, don’t just sit at home in despair. Be sure to communicate. Call all your service providers and ask if there are any COVID-19 relief measures which you can access.

COVID-19 Student Relief.

If you are paying back student loan to the Student Loan Bureau, there is an automatic deferral of your student loan principal and interest payments for 3 months (until July 2020).

Find a side hustle or repurpose a skill you already have.  

Does it look like everyone has suddenly transformed into online gurus? It is that way because everyone is trying to figure out how to reconfigure their business operations to make money. If you can start an online course, create or work on your YouTube channel, offer virtual services, then do so.

My recent article about Jamaican fashion designers who are now making masks is a perfect example of this. People may not be shopping for trendy outfits, but they are buying masks. So, if you can sew masks, make and sell them. If you can make hand sanitizers, then make and sell your own. The point is to get creative and try to get some income from doing so.

Check your insurance policies.  

You may think I am overreacting, but you may want to review the status of your health and life insurance policies. I could get a bit more morbid and ask whether you have written a Will, but I will not let the lawyer in me freak you out. Truth is most of us who contract the virus won’t die, but you never know what could happen with this very unpredictable disease. So, why not get our ducks in a row. I really should take my own advice.

 Once I understood the impact of the Coronavirus, one of the first questions I asked was, will my health insurance cover costs relating to this illness? Thankfully, Sagicor sent out email and texts reassuring us that we are covered. We all know that good healthcare in Jamaica is neither cheap nor free and no one wants to get stuck with astronomical medical bills when you are trying to stay afloat.

Be sensitive to your partner’s feelings.

My immediate reaction to this pandemic is to cut spending on everything that I deem unnecessary. Through conversation, I have realized that being able to continue some of his routine but dare I say expensive rituals actually helps my husband to effectively maintain control over this chaotic situation. In the same light, he understands that suddenly being confined to working from home and trying to homeschool is wearing my nerves thin. Handing me a glass of wine and disappearing with Jordan for an hour or two goes a far way. Be kind to your partner.

Remember, we are all in this together. Literally.

How are you talking money with your spouse during Coronavirus?

Disclaimer: I am not a financial expert. This post is to encourage discussions between spouses and provide support for the JustHitched community