Marriage is an exciting milestone in life. Before the wedding, it’s common to learn as much as you can about your partner’s finances and goals. After tying the knot, you start to put these plans into practice while living together and managing money as a team. If you’re still basking in newlywed bliss, here are five financial topics you might want to discuss with your partner after the honeymoon.
1. Who’s Handling the Bills:
The important thing is that bills get paid on time, not necessarily who pays them. By now, you should have a sense of whether you’re combining finances, which will help decide who handles the monthly bills. If one of you is better at managing money, they might take the lead. Or, if one of you has more free time after work, they could take on this responsibility. My spouse and I share this duty, each taking certain bills to keep things balanced. No matter your method, keep the communication open to avoid late fees or mix-ups.
2. Updating Insurance Policies:
Getting married often means reviewing or even canceling existing insurance policies to combine healthcare plans. Make sure you have the right coverage for your home, cars, and other essentials. Consider updating your life insurance to list your spouse as the beneficiary. Don’t forget to set up a living will and a healthcare power of attorney. While not the most fun tasks, they’re essential for new couples.
3. Planning Savings:
With marriage comes a bigger household, so you might need to beef up your emergency fund or other savings. Discuss a comfortable savings goal considering your debts and how much you’d need if one of you lost your job. Set a deadline to grow your savings. If you’re saving for something big, decide together how much to save each month and where to keep it.
4. Handling Unexpected Expenses:
You probably have a monthly budget, but what happens if you overspend or face unexpected costs? Besides building up savings, think about what situations would warrant dipping into them. Prepare for financial hiccups and understand how poor handling could affect your relationship. Also, make sure you both agree on what counts as an emergency.
5. Long-term Goals:
You’ve likely talked about your five-year plan, but also think about your long-term goals. Your shared future will involve finances. Discuss your career goals, income expectations, retirement plans, plans for children’s education, vacations, and other priorities. Address these early to set realistic expectations and avoid future disagreements.
Keep an open mind and be ready to compromise when talking about money. With patience and understanding, you’ll navigate this initially overwhelming phase and see the value in each other’s perspectives.
So, have you talked about these financial topics with your spouse? Are there any other subjects you want to discuss?