It pays to talk about money and your individual approach to finances with your partner before it can become an issue.
If your wedding is on the horizon, there’s likely a lot on your mind—preparing a guest list, choosing a venue, selecting a caterer and more. These decisions can preoccupy or even consume, but essentially they will only affect a single day. In contrast, the financial choices you and your future spouse make will have a lasting impact on your entire married lives.
Below are some strategies for productive discussions about savings and finances—and here’s to a long and happy marriage.
Discuss your values
Do you and your partner share a vision and goal for your shared life? Are you on the same page with your financial goals and priorities? It’s common for one partner to want to spend money very conservatively (and save a lot), while the other prefers to spend more liberally—whether on luxuries or potentially risky investments in businesses or securities.
Start by writing your priorities down separately. Then compare your lists and discuss where your goals overlap and where there’s room to compromise.
Assess your individual financial situations
Not all married couples combine their finances. Whether you choose to combine or not, it’s important to share any relevant info with each other. This includes:
- The amount you each have in savings and checking accounts, including 529 plans
- Any retirement accounts—401(k)s, IRAs (Roth or traditional), etc.
- Credit card debt and/or student loans
Communicate regularly
Consider monthly or semimonthly “money dates,” in which the two of you discuss your finances. By staying informed, and avoiding secrets and surprises, you can proceed harmoniously toward your collective financial goals.
Be prepared for anything
Planning for the unexpected is an important step in your financial journey together. Protect loved ones by having adequate insurance coverage and creating appropriate legal documents, such as wills, living trusts or prenuptial agreements. If this is not your first marriage, it is important to revise any existing documents or arrangements before tying the knot again.
Your wedding day is a happy event for you and your spouse. By taking time to address your financial future now, you can make sure your new life together is on a solid foundation—and help ensure long-term happiness.
To learn more about financial strategies for couples, please reach out to us.