Love and Money: 9 Financial Basics

Wedding season is just around the corner for many! You’ve booked the band, chosen your colors, ordered the flowers, set the menu and reserved the honeymoon suite—but have you had the talk? You know, the talk about money!

Discussions about finances are extremely important when you’re getting married. Yet they seem to be the ones that get put on the back burner most often. Don’t put it off any longer! If you’re seriously considering getting married in the next six months or so, read on for important tips.

By the way, this information is not only for those with impending nuptuals. If you’re living together and sharing expenses, it’s just as important.

1. Start early. Ideally, you should start having discussions about your finances before you get hitched (or co-mingle your money). But, if you’re already there, get started now.
    

2. Know your options. It’s not always a given that you and your significant other are going to share a bank account. Some couples decide to keep their money separate. Some prefer to have separate accounts but then have a joint household account. Determine what works best for you both and go with it!
    

3. Set goals. Having common goals makes the blending of bank accounts much easier. Talk about how (and how much!) to save as well as how to deal with significant purchases. If you both know what to expect, it’s much easier to stay on task. Another great way to make sure your goals are aligned? Meet with a financial advisor for direction on how to match your investments with your goals.
    

4. Track goals. With all of the resources available through financial institutions, it’s easier than ever to achieve your goals. Utilize charts, graphs and spreadsheets to help you and your sweetheart visualize where you stand and if adjustments need to be made.
    

5. Practice good financial maintenance. Maintain your financial strategy by having regular discussions about where your money is going. This will help you to avoid relationship problems down the line. Check in with your plan at least once every year. Adjust your budget, short- and long-term goals, emergency and retirement savings and any debt management plans to assure that everything is up to date and both parties are on the same page.
    

6. Plan ahead for emergencies. What would you do if one of you lost a job, totaled the car or had a major health concern? Trying to make key decisions in a time of crisis can be disastrous. But if you have a contingency plan in place, and an emergency fund to go along with it, the effects of the crisis can be mitigated.
    

7. Save for retirement. Actively saving for your future could be the single most important thing you do together financially. Take advantage of your company’s 401(k) if they offer one. If you can’t afford to contribute the maximum, do what you can and work your way up. When it comes to your retirement fund, time is as important as money—thank you, compound interest!
    

8. Get a will. If you have assets, like a 401(k) or other investments, it’s important to have a will. No matter how large or small your estate, having a will makes it much easier on your loved ones—and ensures your wishes will prevail. If you already have a will, be sure to update it after the wedding.
    

9. Be honest, trust your spouse and learn from each other. Everyone messes up now and then. Don’t cover up your mistakes—be honest and own up to them. It might be tough at first, but lying about money can have serious ramifications. Trusting your partner can sometimes be difficult, especially if they have had a hard time handling money in the past. Letting go of the need to control everything can reduce your stress level and open doors to new opportunities. You will likely even find out that you can learn a few things from each other if you work together!

Money discussions aren’t always easy—maybe even less so in a new marriage. Take on these important topics with an open mind—as a team—to help strengthen your foundation and make future financial bumps easier.

Mountain America Credit Union loves weddings! And we’re here to help you navigate marriage and every other major financial milestone in life. Our advisors and other experts can help you develop a strategy to reach your goals. Just give us a call, visit us online or stop by a local branch—we want to be part of your foundation!