Discuss money before you head down the aisle.
Being newly engaged is very exciting. However, far too often couples don’t take the time to discuss money matters before heading down the aisle. Talking about finances is essential to building a healthy marriage and doesn’t have to be a sore subject. Getting engaged is the perfect time for you and your future spouse to become clear on your financial strategy and shared goals. You’d be surprised by what you might learn regarding one another’s philosophy on money management.
Beyond partnering to discuss wedding plans and details, you should devote just as much time and effort to outlining exactly how you plan to manage household finances once you are married; especially if you haven’t shared expenses in the past. You should determine things like, will you have a joint account; how you feel about investing and retirement savings; as well as who pays what. It’s also imperative to examine incomes and determine how best to allocate money based on your budget (and make sure you establish one!). If your budget allows, strongly consider living off of one income and banking and/or investing the other.
Last but certainly not least, be transparent about your credit scores and create a plan for tackling debt.
It’s not always easy to be completely open and honest about your finances, but having a strong grasp on where you both stand financially will go a long way in preparing for a happy and successful marriage. It might be a little uncomfortable at first, but sets the right precedent going forward. Consider working with a financial counselor who can provide guidance on merging you finances.
For more financial tips and information, visit www.wellsfargo.com
This article has been prepared for informational purposes only. The accuracy and completeness of this information is not guaranteed and is subject to change. Since each individual’s financial situation is unique, you need to review your financial objectives to determine which approaches might work best for you.
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