Springtime is often considered “wedding season” and whether a wedding happens in the spring, the fall or whenever, one conversation that couples may not consider having before tying the knot is a comprehensive financial conversation. Finances will come up in the course of planning a wedding but that’s just a small part of a larger financial conversation that is wise to have before meeting at the altar.
Talking about money can often be a source of anxiety and frustration in committed relationships as, “navigating money issues when you’re single is completely different than when you’re married,” says Amy Maliga, financial educator with Take Charge America, a nonprofit credit counseling and debt management agency. “That’s why it’s important to talk money before your big day to better understand each other and how you can find marital money success.” Maliga suggests five types of money talks to have to better blend love and money.
What are our attitudes about money?
You each bring a unique perspective about money formed by your own experiences. Discuss your similarities and differences with honesty and respect. Understanding each other’s unique attitudes about money will allow you to create financial goals that meet both of your needs.
What financial assets and obligations do we have?
Share with each other what types of and how much debt and/or assets you are bringing into the marriage. Successful relationships are built on trust and honesty. When you have a full financial picture, you can work together to set realistic goals and determine what financial success looks like for you as a couple.
Should we combine our finances?
Whether you combine your money, keep separate accounts or decide on some combination of the two, there’s no right or wrong answer. But it’s important to talk about as it can help you establish ground rules for money such as who is responsible for certain bills, savings or other obligations.
What will our budget look like?
A budget is not about limitations, but rather creating a plan for your money. Budgeting is more than just a list of your expenses; it’s where you execute on your shared financial goals like saving for a house, retirement or vacation. Discuss what a realistic budget looks like, factoring in your respective incomes and attitudes about money.
Are our finances protected if something happens?
It may not be an easy conversation, but it is important to discuss how to protect yourselves and your finances if something happens to either one of you. Review beneficiary details for your retirement accounts. Create or update your wills. Explore life and disability insurance policies to protect your income.
For additional resources, explore Take Charge America’s Budget Tools at takechargeamerica.org/budget-tools.
Photo by Jack Harner
