How Does Money Affect Marriage?

Ah Spring, a popular time for those who have found true love to tie the knot. Money and marriage can be tricky if couples neglect to talk about financial goals upfront. 

Healthy Financial Goals for Couples

While making plans for engagement parties, showers, the wedding venue, cake, flowers, dresses, music, the honeymoon, and so on, it’s all too easy to get caught up in the romance and overlook your finances. However, it is vital to take the time to make realistic goals and organize your finances together as a couple to support your marital bliss.

Marriage and Financial Stability

Some data shows that financial stability is increased by marriage. Defining financial goals together is essential whether you are engaging marriage or have recently been married. Open discussion about financial goals such as savings, spending habits, debt, and even charity need to be part of contributing to financial plans that meet both partners’ desires.

Healthy Financial Habits for Couples

Full disclosure before strolling down the aisle. 

Ensure you and your partner know all liabilities like credit card balances, car loans, or other personal debts. This information will be the foundation for building your financial plan together.

Kiss your debt goodbye.

Make reducing and paying off debt a priority. At the same time, build a savings account for emergency funds. Save up the cash for large purchases for a new couch or appliances.

Build a budget together.

Take an honest look at your ongoing expenses, from trips to the spa to car payments. One person needs to be the keeper of the checkbook to help avoid confusion. If you plan on buying a home together, contact a mortgage loan officer for a consultation on how much you should budget and how to prepare for an application before starting the home-buying process. A good rule of thumb is to make sure payments are at most 25% of your total take-home income.

Financial planning for the future.

Make sure to talk about your retirement goals and agree upon the vehicles such as IRAs, 401Ks, and other investment strategies to help get you there.

Review your financial plan regularly.

Annually, if less often, review your plan to see what is working and what is not. Address goals and whether these need to change, be modified, or be deleted. Continued monitoring of your plan will help you stay on track and maintain financial bliss in your new life together.

While it may not be the most exciting part of your wedding plan, it is essential to ensure that financial bliss isn’t just a fairy tale.

(Updated February 21, 2024)