The Five Financial Musts for Any Newly Married Couple
As couples begin the process of preparing for marriage, there are several things that they must do. The must decided where they are going to live, how many kids they want to have, the rules of their marriage and so much more. One item that is extremely important is finances. Couples getting married need to discuss these key financial points: 1. financial debts, 2. financial goals, 3. opening accounts, 4. making budgets, 5. deciding who is going to be the accountant for the family.
First and foremost, couples need to look at their total assets and determine the value of those assets. They can be investments, furniture, electronics, cars, and more. This will give the couple a good idea of the total dollar value of what they have in assets which is the first step in understanding where they stand financially.
The purchase of automobiles is an important discussion that couples need to have. How long does each partner plan on keeping their current vehicle? When an upgrade occurs how much money will be allotted to that purchase? These are questions that need to be answered early on in the relationship.
Income is the next item that should be discussed so that they couple knows how much money is coming into the household. This is the basis from which the couple will build their financial wealth.
Debt is a big ticket item on most people’s books. Couple should share with each other how much is owed on any mortgages, credit cards, student loan payments, and other loans. They should be open and honest with one another so that they couple gets a clear understanding of how much debt they are in together; in turn they will be able to build a plan to get themselves out of debt.
If a couple owns a home already or is going to buy one, then they need to understand and discuss the financial aspect of the home. If they already own one, they need to know how much they owe versus how much they own. If they are going to buy a home then they need to figure out how much they can afford to spend on one.
Anyone helping a newly married couple with the financial side of their new status needs to be sure that they have opened a joint banking account. The account should be an “or” account but never an “and” account, so that either one can withdraw and use the account.
Retirement accounts need to be changed too, so that the newly acquired spouse is now the beneficiary. If the couple does not have life insurance or disability insurance, they should be counseled as to the importance of acquiring some at this juncture.
If neither of the partners has a retirement plan then they should definitely look into getting one together because there will be no social security benefits for young newlyweds getting married these days.
Dorthy Weatherbush didn’t have TheKnot.com to help her plan for and get ready for marriage. With the help of TheKnot.com couples now have lots of resources to not only help them plan for a wedding, but for marriage, kids, and the couple’s first home.
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