Starting out your new life as newlyweds mean blending your worlds together, and that includes your finances. Talking about your finances may not be the most romantic topic of conversation, but it is an important one to have. That's why it's crucial to find the best advice for newlyweds that will help you manage your money the best way possible.
Even if you already lived together before getting married, managing your money will change after you become legal partners. These money matters may be awkward to talk about at first, but doing so will improve your communication skills and prevent any money misunderstandings in the future.
Also, working together as a team with your finances will strengthen your relationship and help you achieve your money goals together!
10 Pieces of financial advice for newlyweds
Don't let your money matters put a damper on your relationship. Here are 10 pieces of advice to newlyweds to keep your finances in order!
1. Talk about your family financial history
Discussing your family financial history is one of the most critical newly married couple tips you can do. Talking about your family's history with money is a great way to open up the conversation about your marriage finances.
Revealing how your parents handled money, what you learned from their financial resume, and how they taught you to save or spend can be helpful information for couples.
This can also help you figure out if you've inherited financial insecurities or have any money blocks you need to work past. This way, you can tackle them as a team and work towards financial success!
2. Joint bank account advice for newlyweds
Some marriage advice to consider regarding your financial management is whether or not you will have shared or separate bank accounts. There are pros and cons to both.
If you choose to keep your bank accounts separate, you will have to pay special attention to budgeting and separating bills between the two of you. Otherwise, your financial management will continue as normal.
Choosing to have a shared bank account means both of you will have access to and contribute to one bank account. This makes life easier when it comes to becoming homeowners and paying bills. It's also simpler to keep track of spending when you're working with one account.
Disadvantages of a shared account occur when one spouse is less careful than the other about making purchases or frequently overspends.
3. Create a couple's budget
Once you are married and living together, you will need to create a monthly household budget as a couple. First, determine your shared monthly income.
Next, make a list of your expenses such as monthly bills, entertainment, mortgage, insurance, as well as loans, and other debts. Once you have studied this list, cut out non-essential expenses.
Having a budget will give you both a better understanding of how much you need to bring in monthly and will help you tackle debts and avoid overspending. This is one of the most important newly married couple tips to apply to your finances.
4. Discuss your finances with your spouse regularly (Key advice for newlyweds!)
Your marriage finances should not be swept under the rug. Circumstances are bound to change at various points in your married life. So make it a habit to review your finances on a monthly or bi-monthly basis to ensure you are staying true to your household budget.
Our advice to newlyweds is to make this an enjoyable discussion. Yes, money is a serious subject however it's best to communicate nicely with each other. Maybe plan a dessert finance discussion and enjoy some yummy cake while you talk money. Good communication is key to a successful marriage.
5. Be honest about your debt
One piece of marriage advice that works for all aspects of your relationship is this: be honest with your spouse. This is especially true when it comes to talking about money. You wouldn't want to exaggerate your income, nor would you want to lie about the amount of debt you have.
Many find debt embarrassing, but the truth is that most people have debt at some point in their lives. This might be student loans, credit card debt, a mortgage, or a car loan. Whatever the case, let your partner know about any money you owe before you tie the knot.
Once you have openly discussed any debts you may have, make it your goal to settle them as a couple. You may not feel like it is your responsibility to pay off the debt that your spouse accumulated before you were a couple.
However, their debt may make it harder for you to get a loan or buy a home together. Furthermore, once they are connected to your bank account, you officially become liable for any debt they incur in the marriage. Therefore, you can reduce debt faster if you do it together.
6. Start an emergency fund
You will never regret starting an emergency fund after marriage. This locked savings account is a great way to put cash aside for emergencies or unexpected occasions. For example: if you lose your job, if you are suddenly expecting a baby, if the roof leaks, the car breaks down, and the list goes on.
Set up a savings account in both of your names and either set up an automatic transfer through your online bank app or take turns putting money into the account on a monthly basis. An emergency fund will slowly grow over time and give you peace of mind should any unexpected problem arise.
7. Don't hide your spending habits
A common issue that causes conflicts in marriage is problems with overspending. Since the average American overspends roughly $7,400 a year, this isn't surprising. Overspending can rack up debt, cause mistrust between partners, and shows a lack of respect within the marriage.
Avoid these relationship issues by consulting your partner before making big purchases and being open and honest about your spending habits.
8. Plan for retirement and create an estate plan together
Some of our most important advice to newlyweds is to plan for their retirement together. Retirement is going to be a big part of your marriage.
This is the time when you relax, kick up your feet, and start spending some real quality time together. You can plan for retirement by setting up retirement savings accounts such as IRAs.
You can also talk to a financial advisor about investing and creating an estate plan as part of your retirement plan.
It's important to diversify your portfolios to build up your retirement accounts effectively. Limiting unnecessary spending and budgeting accordingly throughout your working life are also great suggestions for retirement planning.
9. Create financial goals as newlyweds
Some of the best advice for newlyweds is to create financial goals together. Having goals set can help you achieve your big visions in life! When you set goals, remember to make them specific and measurable. It's also good to set short-term, mid-term, and long-term goals.
For example, short-term goals would be things like saving for vacations or saving for Christmas. These goals are typically between 12-24 months. Mid-term goals require a little more planning and more funds than short-term goals. For instance, saving for a car or a down payment on a home.
Long-term goals are going to take more planning and determination to achieve. These goals include things like saving for retirement or paying off your mortgage. So, creating financial goals is one of the most important tips for newlyweds that can help you establish a vision for your life together.
10. Have budget-friendly date nights
One of the most important newly married couple tips is to find romantic and fun things to do that don't bust your budget. It's easy to get caught up in going out and having fun, eating expensive dinners out, and hitting the movies regularly, but this can get costly fast. However, it's important to set aside time and have date nights you can enjoy.
There are tons of great at-home date night ideas for couples on a budget! You can have a fondue party, a spa date, or cook a meal together. Having fun together without overspending is the best advice for newlyweds that will help save money.
Use this advice for newlyweds for financial success
Some of the best advice for newlyweds you can follow is always being honest about your debts, income, and budgeting history. Marriage finances are a tricky topic, but it’s important that you discuss them regularly with your partner. Communication is key when it comes to marriage.
These newly married couple tips can help you budget better, create goals, and most importantly find enjoyable things to do together too. Why not get started by taking our free financial courses together to work towards financial success!