FOX Business’ Lauren Simonetti takes to the streets of New York City to talk about the recent Bankrate report that found that 40% of Americans who are married or living with a partner have committed “financial infidelity.” We asked people for their opinions on the survey.
Once the blissful moments of the wedding and honeymoon are over, it’s time to return to reality.
Money is a topic that should be discussed between you and your partner, preferably before the wedding takes place. Money can be a big point of contention between couples, so it’s important to plan early on how you’ll deal with it as a couple.
Money is often an uncomfortable topic between partners, but it’s important to be honest with each other throughout financial conversations. After all, 44% of couples argue about money at least once in a while, according to Bankrate.
Below are some tips that newlyweds should follow to survive difficult financial situations.
Talking about money with your spouse can be a difficult but important conversation. (/ensemble)
When should you start saving for your wedding?
- Please stop discussing money
- Determine long-term and short-term financial goals
- Think about how to save money as a couple
- create a budget
- Adjust finances as needed
1. Take money discussions outside.
When you sit down with your partner to talk about money, open everything up. Be 100% honest with each other to avoid surprises in the future.
One important topic is debt. This includes everything from personal loans, credit card debt, and student loans. Figure out how much money each of you has and plan how to pay it back.
Also, talk about your spending and saving habits. What do you spend a lot of money on? Do you consider yourself a spender or a saver? How much money have you already saved? Do you have a retirement plan?
2. Determine long-term and short-term financial goals
Set short-term and long-term goals together.
If you have outstanding debt, one goal is likely to be to pay it off as quickly as possible. Maybe you want to save up for a down payment on a house. Do you have an emergency fund ready? If not, one of your first goals is probably to raise money.
You can also talk about short-term money goals. This includes things like saving for a vacation or buying a new car.
What is financial infidelity in marriage?
When talking about money with your spouse, be open and transparent about things like debt and your personal spending habits. (/ensemble)
3. Think about how to save as a couple
There are three different ways to handle your finances together. The first is to do everything collaboratively. The second is complete separation of finances, and the third is a combination of both.
Currently, 43% of U.S. couples who are married, in a civil partnership, or living together only have joint accounts, according to Bankrate.
According to sources, 34% of couples have a mix of joint and separate accounts, and 23% have completely separate accounts.
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Statistics show that keeping money separate for couples is an idea brought up by the younger generation, with 69% of Millennials having separate accounts, according to Bankrate.
How you and your spouse plan to handle your finances is a personal decision. Some people, like Dave Ramsey, for example, believe that once a couple gets married, their money should also get married and all their income should go into the same pot.
Also, some people prefer to keep things separate, which can be problematic when bills and children are involved.
Some couples find value in combining both ideas.
Most couples don’t have the same debts or incomes, which can quickly create financial imbalances and animosity towards each other.
That’s why it’s so important to discuss all these options with your partner and decide what’s best for you at the stage you’re in in life. Remember, you are not stuck one way forever. . If the method you choose doesn’t work, you can always change it.
That said, lumping everything together is still the most common option.
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4. Create a budget
Creating a budget is a great way to stay on track with your goals and get a clear picture of your spending habits.
Whether you’ve created a budget before or not, creating one with your partner for the first time is a new experience. Even if you’ve been making it single for years, it’s going to look different now that you’re married.
The important thing to consider when creating a budget is a combination of your income, expenses, and savings plan.
Review your budget monthly to ensure it’s on track with your goals and make any necessary adjustments. (/ensemble)
Once you know your total income, list all your expenses, including bills and debts you have to pay.
Next, don’t forget to write down how much you want to save each month. A popular budgeting method for couples and individuals is the 50/30/20 rule. This means that 50% of his money goes towards things he needs, 30% towards things he wants, and 20% towards savings.
5. Adjust finances as needed
It’s great to have the conversation about money first, but it shouldn’t be the only conversation. Check in with each other monthly or bi-monthly to ensure changes are made and input is heard.
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Make the necessary adjustments to maintain healthy relationships with loved ones and your finances.
