Navigating Newlywed Life Through A Financial Lens
Marriage is about having an open line of communication, even the overwhelming parts like finances. Here are some helpful tips so you can spend less time stressing over finances and more time celebrating life together.
The Do’s and Don’ts of a Joint Account
Marriage isn’t just about sharing a last name, bathroom, or your last bite of dessert. For some, it means sharing an account. Opening a joint bank account is a big step for many couples. Of course, the choice to get a joint bank account is dependent on every couple. A CreditCards.com survey found 34% of couples have a mix of joint and separate accounts1. Whatever the case may be, there are pros and cons for newlyweds having a joint bank account.
The Good:
- Sharing is caring. Having a joint bank account allows money to be equal between a couple.
- It’s all in one place. Having access to all your money at once is convenient.
- Transparency. When money is all in one place there’s no room for financial surprises.
- Saving dollars. Joining bank accounts means having fewer fees in separate accounts.
The Bad:
- Fights over finances. Sharing money can be a cause for arguments among couples. There might be different perspectives when it comes to spending habits.
- Lack of independence. Not everyone spends money the same way, some couples might feel a lack of autonomy combining finances.
- Nothing is hidden. If a spouse is trying to get a surprise gift for the other, it will make it hard to cover their tracks.
Tackling Debt Together
One goal for many couples is to pay down debt. There are many ways to do this but it’s always important to work as a team. One option to consider is consolidation. If you can find a loan with a lower interest rate than the interest rates on your current debts, it can be beneficial to combine various debts into one to simplify how you track and pay for them.
How to tackle debt together:
- Open up. Have an honest conversation about it.
- Share your goals. Figure out how aggressively you want to pay off your debts.
- Make a plan. Start making monthly budgets and stick to them. Consider implementing the 50-30-20 budget (50% of income on necessities, no more than 30% on wants, and 20% towards debt repayment)2.
- Assign tasks. Divvying up responsibilities can help you work together. One person can pay the mortgage and the other can pay utilities.
Love, Life, Savings
Another step in the process of marital financial planning is preparing for the future. In the midst of opening up a joint account and paying off debt, it’s possible to save money too. A bucket list trip, purchasing a house, and growing your family, are all part of endless possibilities. To achieve all these exciting dreams, financial priorities must be set. First, figure out “why” you want to save money. Then consider opening up a checking and savings account. Budgeting correctly can help make these goals become a reality. It’s important to keep in mind to make more and spend less. Saving money can be difficult but always remember to remind each other why you are doing it in the first place.
Bank of Colorado Makes It Easier For Married Couples To Save
Starting a life together can be exciting and overwhelming, which is why it helps to streamline your finances by creating a game plan as a couple. Bank of Colorado can help you every step of the way, whether it’s opening a joint checking and savings account or finding the right mortgage on your very first home. Bank of Colorado offers convenience to take care of it all with online banking and through the mobile app.
Sources:
1 https://www.bankrate.com/banking/reasons-for-married-couples-to-consider-separate-bank-accounts/
2 https://www.nerdwallet.com/blog/finance/how-to-build-a-budget/