First Comes Love, Then Comes ... Financial Planning

The initial swirl of excitement following an engagement is inevitable. As the wedding colors and venue selection begin, don’t overlook the all too important topic of how you and your future spouse will work together financially.

Now is the time to ask important questions about each other’s spending and saving habits, overall debt history, credit score and long-term financial goals. No question is too trivial. Don’t assume that because you (or your parents) did things a certain way, that your partner will have the same commitment or expectation.

These questions can get the conversation started:

1. What are our common values and differences when it comes to money? If you’re unsure how to answer this question, review your bank accounts together to assess your individual spending. Do you both have savings or an emergency fund? What are your credit card balances? How often do you each give to charitable causes? What do you typically buy when you have extra money? These answers will help you determine how much you have in common.




2. What do our income and assets look like? Your total annual income and overall net worth are important numbers to know. This information will provide a baseline that will inform your financial decisions, especially as you consider paying off debt and saving for larger expenses.




3. What are our short- and long-term financial goals? Being able to strategize around your personal and collective goals ahead of time is essential. Some factors to consider in this discussion are: career and educational goals, when to buy a home, when to start a family and savings/retirement planning. Don’t trick yourself into thinking this will be easier to figure out later. These discussions before marriage will give you a foundation to resolve larger, more complicated decisions in the future.




4. Are you a spender or a saver? What about your partner? While it’s quite common for one of you to value saving more than spending, this dynamic can provide a good balance. Remember to keep communication lines open as you navigate financial decisions. Plan a time monthly to check in and review your budget, talk about upcoming expenses and prioritize your goals for the future.




5. What will day-to-day financial management look like? While it certainly makes sense to have a joint bank account for household expenses, plan to have a specific discussion about how expenses will be divided. It is also wise to maintain individual options for personal spending—anything from a designated amount of cash to individual accounts, if your budget allows. Doing so will help alleviate smaller financial disagreements and leave you both with a sense of autonomy.

There are many ways to manage money. That’s why it’s critical to see your partner’s perspective and work together to navigate the similarities and differences. If you need additional strategies, consider taking a financial education class. Mountain America Credit Union offers free, quarterly events that are open to the public. Or, create a solid foundation by scheduling an appointment with a financial advisor. Get a wealth of resources to help you prepare together for financial success.