Money is a complex topic for couples. It will help if they try to figure out which strategies are best to manage money in marriage. Some people hit the roadblock when it comes to managing finances as a couple. Here are some tips that will guide you through managing finances in marriage.
You will want to disclose the debts you already have, such as student, auto, home loans, and credit-card debt.
If this is not your first marriage, share with your partner any alimony and child support obligations you have. Please talk about your bank accounts and what’s in them: checking, savings, investment, etc.
Decide on how to manage finances after marriage, separate accounts, or both?
2. Examine your relationship with money
Do you and your partner have differing views on money?
If you aren’t aligned with how you think your money should be spent (or saved), you need to work on finding a finance-managing system that satisfies both of you.
Maybe decide on a spending limit, say $100.00, and anything above that amount needs mutual pre-approval before the item is purchased.
If you prefer not to build consensus for large purchases, you might want to keep separate, self-funded “fun money” accounts, to be used for when you want something for yourself, such as clothing or a video game.
This can help cut down on arguments since you aren’t using money from the common pot.
3. Use debit cards instead of credit cards for expenditures
Have you ever, in the past, hidden any purchases or gotten into too much credit card debt due to overspending? If this is the case, perhaps cutting up your credit cards and using only debit cards makes good financial sense for you.
4. Define short-term and long-term goals for your money
You should both agree on saving for retirement and establishing an emergency fund in case of loss of a job. How much would you like to put into a savings account each month?
Discuss how you might save your first home purchase, buy a new car, or vacation, or investment property.
Do you agree that establishing a college fund for your children is important?
Revisit your short and long-term financial goals at least once a year so that you can take stock and review if these goals have evolved (or, better yet, been met!).
5. Discuss contribution towards supporting parents
Please talk about your contribution towards supporting your parents, now and in the future, when their healthcare needs will increase.
Be transparent when “gifting” a member of your family with cash, primarily if that family member relies on your generosity rather than getting a job himself
Make sure your spouse is aware of and in agreement with this arrangement.
Discuss aging parents’ needs and if you would be open to moving them closer to you or even into your home. How will this affect your financial situation?
6. Decide financial arrangements for children
What are your thoughts about allowances? Should children be paid for tasks that contribute to the smooth running of the household? When they are old enough to drive, should they be given a car, or should they work for it?
Should teenagers work part-time while still in school? And college? Should they help contribute to tuition? Take out student loans? What about once they have graduated from university?
Would you continue to allow them to live rent-free at home? Would you help with the rent of their first apartment?
7. Discuss expenses if only one spouse earns for the household
Having one stay-at-home-spouse and one wage-earner can sometimes lead to money conflicts, as the wage-earner may feel like they should have more voice in how to manage finances after marriage in the family.
This is why it is essential for the person staying at home to have some job where they feel control over money.
There are many possibilities for stay-at-home-spouses to bring in a little cash: eBay selling, freelance writing, private tutoring, in-home childcare or pet sitting, selling their crafts on Etsy, or participating in online surveys.
The goal is to feel like they are also participating in the family’s financial health and have some of their own money to do with as they like.
The wage-earner needs to recognize the contribution of the non-wage earner. They keep the house and family running, and without this person, the wage earner would have to pay someone to do this.
8. Have a financial night every month
Managing finances as a couple may look like a simple thing that needs to be taken care of, but it’s an ongoing conversation. Financial management in marriage should be healthy.
So you set some time aside every month to keep track of your savings and expenses. You can discuss an additional expense in the near future, or you need to save for something in the future.
Discuss everything and make sure that you both talk about it openly. This will help you in managing finances in marriage.
9. If needed, ask for financial advice
This is probably one of the most important financial tips for married couples. It would be helpful if you understand that your marriage always comes first, and if there is a problem with the couple’s finances, you should look for professional advice.
Suppose you are looking for tips on money management or are confused about how to manage finances after marriage. In that case, many financial counselors provide financial advice for married couples.
You can find one and look for financial advice for married couples.
10. Don’t keep financial secrets
Financial changes after marriage can be challenging, but you need to know that keeping financial secrets can drive your marriage into a black hole.
So many people hide their savings accounts, credit card expenses, checking accounts, etc. They spend money without telling their partners, and when their significant other finds out, the marriage turns into a war.
It’s better to be transparent about finances after marriage. It will keep your marriage intact and help you to build a better future together. Secrets are taboo when it comes to managing finances in marriage.
Hiding finances raises trust issues in a marriage and can be toxic to a relationship.
It’s best to know if your partner is a saver or a spender. One of the most common financial advice for married couples is to know who among them is a penny save and who is a spendthrift. It helps you manage your finances effectively.
You can easily manage money in marriage by coming up with an agreement that keeps you both happy.
You can have an expense limit that doesn’t feel like a restriction to the other partner.
If you are having trouble coming up with an agreement that suffices the financial needs of you and your partner, you should look for professional help.
Maybe your spouse has made a financial blunder in the past, but you need to understand that sometimes people make wrong decisions. You both can review your financial investments and share tips on money management.
Most people question the financial decisions of their partner without looking into it on their own. It would be helpful if you understand if there is a problem or not, and if there is, handle the issue delicately.
13. Don’t overextend your budget
Managing finances in marriage can be overwhelming, especially when both partners have a stable income source. Sometimes couples don’t plan a smart future because they feel financially powerful at the moment and decide to go overboard.
When you are managing finances in marriage, you don’t make spending decisions that will strain your relationship.
Forex: People often stretch to buy their dream home, and a large chunk of their earnings goes towards affording it.
If you feel disconnected or frustrated about the state of your marriage but want to avoid separation and/or divorce, the marriage.com course meant for married couples is an excellent resource to help you overcome the most challenging aspects of being married.
Sylvia Smith loves to share insights on how couples can revitalize their love lives in and out of the bedroom. As a writer at Marriage.com, she is a big believer in living consciously and encourages couples to adopt this principle in their lives too. Sylvia believes that every couple can transform their relationship into a happier, healthier one by taking purposeful and wholehearted action.