9 Tips for Newlyweds: Marriage & Finances

Getting married and looking for money advice? Ready or ‘knot,’ guest blogger, Nichole Coyle, joins us today to discuss marriage and finances.

Transitioning from handling finances individually to merging two different financial systems, spending patterns, savings approaches, and financial goals can be challenging. Talking about these topics prior to your wedding day or in the early years is wise.

In my experience, it is immensely beneficial for newlyweds and those recently engaged to openly discuss their financial goals, create a budget together, and communicate about spending habits to ensure a shared understanding of financial responsibilities. Establishing an emergency fund and discussing long-term financial plans are also crucial. With some planning, you can feel confident about your shared finances and anticipate problems that could arise down the road.

Ahead are 9 money tips to consider for newlyweds

1. Open Communication: Encourage open and honest communication about your financial goals, values, and expectations. Discuss individual spending habits, debts, and any existing financial commitments to ensure transparency. This means sitting down to look at student loan and credit card debt, auto loans, mortgages, or rental agreements, as well as current spending. Any discussion of marriage and finances includes your current individual goals as well as new, joint goals.
2. Create a Joint Budget: Sit down and work on creating a budget together. Your budget should include your combined income, expenses, and savings goals. This collaborative effort helps to allocate resources effectively and avoid spending surprises. This isn’t a one-time exercise, though. Having a scheduled “budget or finance meeting” with your newlywed spouse can help you communicate and work through changes early on. Set these meetings monthly or quarterly to help keep you on track to help you reach your goals.
3. Emergency Fund: If you haven’t already, establish an emergency fund to cover unexpected expenses. Aim for a minimum of three months’ worth of living expenses, providing a financial safety net during challenging times. Depending on circumstances, many people “max out” their emergency fund savings with 6 months’ worth of income. At that time, begin looking for other avenues to invest your money, like a workplace retirement account (such as a 401K), Roth IRA, share certificate, or brokerage account. Navigating marriage and finances means adjusting your scale – so remember that your emergency fund now needs to cover expenses for two people (and eventually more if you are considering children).
4. Debt Management: Address existing debts by discussing repayment strategies. Whether it’s student loans, credit cards, or other obligations, formulate a plan together to tackle debts and avoid accumulating more. Debt can have a significant impact on marriage and finances, and developing a plan early will give you the confidence to push through any stress those lingering debts might cause.
5. Financial Goals: Have a date night to talk about your financial goals. You can do this over dinner at the kitchen table or at a nice restaurant. Regardless, it’s important to talk as newlyweds about how you envision your future together. Discuss short-term and long-term financial goals as a couple. Whether it’s buying a home, saving for a vacation, or planning for retirement, having shared objectives helps guide your financial decisions.
6. Individual and Joint Accounts: Decide on the structure of your bank accounts. Some couples prefer a combination of joint and individual accounts, allowing for both shared expenses and personal financial autonomy. Others prefer to combine everything into joint accounts with the sentiment “What’s mine is yours, and what’s yours is mine.” Either approach can be healthy for both marriage and finances so long as you and your spouse are in agreement.
7. Insurance Coverage: Review and update your insurance policies. This includes health, life, disability, and potentially even property insurance. Ensure that both partners are adequately covered for unforeseen circumstances, and also review your current beneficiary elections.
8. Retirement Planning: It’s wise to figure out where you both stand on retirement planning and to start as early as possible. Discuss your retirement goals, contribute to retirement accounts, and explore investment options that align with your risk tolerance and long-term objectives. Look to workplace plans as well as individual retirement savings options. Also, make sure that you update the beneficiaries on any existing accounts once you get married.
9. Regular Financial Check-Ins: As previously mentioned, it is wise to schedule regular check-ins to review your budget, financial goals, and progress with your spouse. This provides an opportunity to address any concerns, celebrate achievements, and adjust your financial plan as needed. In addition to checking in with your spouse, keeping up in marriage with finances is easier when you check-in with your financial planner at least once per year. Inform them of any changes like a new job, new baby, or new goal. By communicating regularly with each other and your financial professionals, you can learn about and take advantage of tax law changes, retirement contribution limits, and more.

Navigating marriage and finances as newlyweds is a shared journey that requires communication, collaboration, and a strategic approach. By addressing these monetary considerations early on, you’ll not only build a strong financial foundation but also strengthen the bond that comes with working together toward common goals.

As always, if you have questions or would like to discuss your unique situation, please don’t hesitate to contact me.

Nichole M. Coyle

CERTIFIED FINANCIAL PLANNER™

20333 Emerald Pkwy

Cleveland, OH 44135

216.621.4644 x1607

Coylen@ceteranetworks.com

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Posted In: Tips For Managing Finances