Congratulations on your impending nuptials! Marriage is a beautiful celebration of love and the joining of families. It's full of fun family traditions that allow you to share your special day with those you love and care about most.
Right now, you're probably on cloud nine (understandably so!) thinking about all of the exciting details like finding the perfect venue or gown or sampling delicious cakes and cupcakes, and don't worry, you'll be able to enjoy those parts soon enough. But first, it's time to talk about one thing that's often overlooked in wedding planning, and it's one that could be the most important of all: talking about your finances with your partner.
Finances are unfortunately one of the top stressors of marriage, but they most certainly don't need to be. Mapping out your financial future together during the wedding planning process will help set you up for a lifetime of happiness and success. Building a new life together is going to take some effort and deep thought, especially when planning and talking through your finances.
Not only will you be walking down the aisle to say “I do” to your soon-to-be spouse, but you'll be saying the same thing to their finances as well. Not sure where to start when it comes to discussing your finances? We've got you covered.
Helpful Financial To-Dos Before You Say I Do
When Two Budgets Become One
Budgeting for yourself can be challenging, so imagine how much more difficult it could be to create a budget with your new spouse. That's why it's important to sit down with your partner and lay everything out in the open before your big day.
Start by talking about your current financial position including your monthly earnings, your current debts, your savings and your monthly expenditures. It's a good idea to disclose your credit scores to each other so there are no surprises down the road when you apply for joint vehicle loans or a mortgage. If one of you has poor credit, come up with a plan together for how you'll work on improving it. Then, discuss what your financial goals are. Are there other outstanding debts like student loans or credit card debt that you'd like to pay off? If so, discuss your plans for paying them off sooner rather than later.
If you have dreams of buying a home or starting a family down the road, be sure to start saving now. You've probably heard the phrase, “The earlier you start saving, the better,” and it's a phrase that absolutely rings true. When you commit yourself to saving money—no matter how little or how much—rest assured that you're off to a great start already. Sit down together and look at your budgets and daily expenses regularly and decide where you can cut costs. Figure out where you can save money or eliminate costs completely. For example, if you're paying for a gym membership but haven't set foot inside it for months, then it's probably the perfect time to cancel your membership and save a few bucks.
When it comes to your budget, keep track of it in whatever way you're most comfortable with. Whether you prefer an electronic method or a good old-fashioned pen and paper, just be sure the two of you are having regular conversations about money—the good, the bad, and the ugly—to make sure you're both on the same page. Don't worry if you find that your budget needs to be tweaked periodically—that's completely normal and it happens more often than you may think. Or, if you find that you're tweaking your budget pretty frequently, then you may need a complete overhaul depending on your budgeting progress and how soon you're hoping to achieve your financial goals.
Not All Policies Are Created Equally
One of the perks to being married, aside from committing yourself to the love of your life, of course, is that you're eligible to be on each other's insurance policies, which can save you a significant amount of money.
Compare health insurance policies to see which one of you gets more bang for your buck. If you're planning on making your folks grandparents anytime soon, consider checking out the costs of family policies, too. Since marriage is considered a life-changing event, adding a spouse to your policy means you won't need to wait for an open enrollment period.
Once you've figured out the health portion of your insurance, shop around for car insurance policies. Most offer multiple car discounts. While you're at it, and depending on whether you're planning on renting or purchasing a home, many insurance companies will bundle the quotes for extra savings.
Since you're very close to officially having someone that depends on you, you may want to consider shopping for credit life and credit disability insurance and/or life insurance if you don't have coverage yet. This will ensure that your spouse is protected in the event the unexpected were to happen. It's not necessarily an enjoyable topic of conversation, but it is one that's very necessary. Plus, it's also a good idea to purchase this type of insurance early on since you can potentially lock in better rates when you're younger.
‘Til Death Do You Part
While we're on a not-so-fun topic of protecting our loved ones when we're no longer here, let's talk wills. Again, no one wants to think or talk about death, but ultimately, it's a fact of life, and having a will is a crucial document that both you and your spouse should have.
You can use a lawyer to draft your will or create one online for much less. Your will should include a list of all your assets and how they will be divvied up. If you have children, it should also designate who will get custody should the unthinkable happen. And don't forget, you'll want to update your will any time you're faced with a life-changing event.
To Have and to Hold… a Joint Bank Account?
Deciding whether or not your bank accounts should also get hitched? Opening a joint account is a huge decision, but it's one that can prove to be very beneficial when it comes to managing your finances. It gives you a glimpse into how your money is being spent, allows you to save up toward mutual goals, such as owning a home or a car or saving for a college education, and helps you keep track of your current bills and expenses like rent or mortgage, utilities and groceries, ensuring that you're both in the loop when it comes to your funds.
Sharing money is a big deal, so if you're planning and willing to go this route, you'll want to discuss the following questions with each other:
- How will you manage the account?
- Whose responsibility will it be to manage the account—one or both of you?
- Do you have any spending rules?
- What percentage of your income do you plan to contribute?
- How do you plan to handle joint expenses? Will you split your bills and expenses 50/50?
Whether you'd like to open a joint account before or after your big day, our friends at GOLD Credit Union can help. They've got checking accounts that would be the perfect fit for combining your finances, complete with earnings on your account balance, no surprise fees and a switch kit to make moving direct deposits and automatic payments a breeze. For more information on GOLD's products and services and how they can help push your dreams forward, give them a call at 484.223.4200 or visit goldcu.org.
Cheers to Your Happily Ever After
Having these conversations before your big day will help start your marriage off on the right foot. The more often you openly communicate and discuss your finances, the easier it'll be to have these conversations down the road. You'll have peace of mind knowing you and your future spouse are on the same page with your finances, making it a good time to start putting your time and energy into building your new life together and focusing on the details you're putting into your special day (hint, hint, the more fun parts of wedding planning that were mentioned earlier!).
GOLD Credit Union | Various area locations | goldcu.org
This post is a sponsored collaboration between GOLD Credit Union and Lehigh Valley Style.
