Navigating Finances as a Couple: Pre-Marital Money Management
- Marcy Blandeburgo
- Mar 1
- 2 min read
Updated: Mar 15
Navigating Finances as a Couple: Pre-Marital Money Management
Money matters can be a sensitive topic in any relationship, especially when it comes to merging finances with your significant other. Money issues are one of the leading causes of divorce in the US. Before tying the knot, it's crucial to have open and honest conversations about money to ensure a solid financial foundation for your future together. To help you navigate pre-marital money management, here are some tips and insights to consider:
Don't Merge Finances Until You Say "I Do": Until you are legally married, your money is "his" and "hers", after it should be "ours".
Set Financial Goals Together: Before combining finances, sit down with your partner to discuss your individual financial goals and aspirations. Whether it's buying a house, saving for retirement, or starting a family, having a clear understanding of each other's priorities will help you align your goals and work towards them as a team.
Be Completely Open and Honest: Debt is a reality for many couples, and it's essential to be transparent about any outstanding loans or financial obligations you may have. Take the time to discuss your spending and saving habits, bills, and debts openly, including student loans, credit card debt, or car payments, and create a plan to address and pay off any outstanding balances together.
Establish a Budget: Creating a budget is a fundamental step in managing your finances as a couple. Sit down together to outline your monthly income, expenses, and savings goals. Be sure to allocate funds for shared expenses, individual discretionary spending, and savings accounts to ensure that you are both on the same page when it comes to money management. Don't forget to include fun!
Consider Financial Coaching: Sitting down with a coach, as a couple can be highly beneficial in building a strong financial future together. Consider working with a financial coach who can provide guidance on budgeting, saving, investing, and planning for major life events such as buying a home or starting a family.
Plan for the Unexpected: Life is full of unexpected twists and turns, so it's essential to prepare for unforeseen circumstances. Consider purchasing life insurance, disability insurance, and creating an emergency fund to protect your financial well-being in the event of illness, injury, or job loss.
Regularly Review and Adjust Your Finances: As your financial situation evolves, it's essential to review and adjust your budget and financial goals regularly. Schedule monthly budget meetings to discuss your progress, make any necessary changes, and celebrate your achievements together. By taking a proactive approach to pre-marital money management, you can build a solid financial foundation for your future together as a couple. With open communication, transparency, and a shared commitment to your financial goals, you can navigate the complexities of merging finances and build a secure financial future together.