Financial Planning for Newly Married Couples
Summer wedding season is in full swing, and newly married couples will soon be managing their finances as pairs. At Central Bank, we encourage couples to waste no time addressing how they will handle money issues as spouses and financial partners.
We want to see all couples start their journeys on strong financial footing. To help, Central Bank offers consumers these post-wedding money tips:
1. Married couples handle finances TOGETHER
So, how should newly married couples begin to deal with finances? Where does the plan start? Well, first, you should talk about it as a team. While discussing finances may be a bit uncomfortable for many couples, those who tackle it head on will be better for it. Understanding your partner’s financial goals and spending habits is important for both of you – and getting on the same page is likely easier than you think. You need to talk in an open and honest manner about what you want and expect. While you may have different answers, having a heartfelt but practical conversation can help you develop an approach to money management that works for both of you. And keep in mind, your Central Banker is available to answer banking questions that may arise as you and your partner discuss your finances.
2. Set a newlywed budget
A mistake many couples make is not establishing a budget early on. After assessing your finances as a pair, determine how you’ll spend your money each month. Are there certain expenses you should be cutting back on and others you should be saving up for? Financial planning for newly married couples is much easier – and much more successful – when you can come to agreement on these matters, and setting a budget will be beneficial for the health of your bank accounts and your relationship.
3. Have a plan for your accounts
When it comes to handling finances as newlyweds, there is no “right” way to manage your accounts. Couples can choose to have exclusively joint accounts or a joint account as well as separate accounts for saving or personal spending – or they can keep things entirely divided. At Central Bank, we offer a variety of checking and savings account options, and we encourage you to discuss your preferences together to decide what makes you both the most comfortable. Decide what works best for you as a team.
4. Set up an emergency fund
Life is full of surprises and, unfortunately, some of these surprises can be expensive – particularly when it comes to newlywed budgets. Having an emergency fund will help you avoid precarious financial situations should something come up. It’s important to decide together how you’ll set aside the money. And remember, your Central Banker will gladly discuss your account options with you.
5. Establish a minimum cost for discussing big expenses
While not all purchases demand a conversation, more expensive ones that impact the budget for newly married couples should. Determine what that threshold is as a couple. For any expenses above that cost, you both should be in agreement on whether it’s a necessary purchase. Consider your finances in deciding need versus want. It can make a big difference down the road.
6. Update your beneficiaries
Now that you’ve officially tied the knot, you should likely identify your spouse as the person who will receive the benefits of your will, life insurance policy and financial accounts like your 401(k), checking and savings. Handling finances as a married couple means planning as a married couple. Don’t make the mistake of waiting for an emergency to arise to handle this.
Never stop learning
At Central Bank, we want to help every newly married couple prepare for a more successful financial future. We invite you to explore our related blog posts:
And learn more about your financial planning options by visiting Central Bank Personal Wealth Management.