When it comes to money and marriage,聽, and different money personalities and levels of income require unique strategies. Whether you鈥檙e newly engaged or recently married, it鈥檚 important to sit down and figure out how you will handle your financials together.
First, start by defining what your goals are as a couple. Too many couples don't have a clear idea of where they want their money to go. 鈥淒o you both want to buy a house, plan a trip or think of kids in the future?鈥� asks Angela Hansen, Financial Advisor for Prospera Credit Union. 鈥淲hen coming together as a combined household, you鈥檒l need to merge these ideas and create a list of joint priorities that you both support and believe in. These priorities will help influence your most crucial financial decisions.鈥�
Next, decide what works best for the both of you when it comes to combining accounts or keeping your money separate. Everyone thinks and feels differently about finances, no matter how much you earn.
鈥淛oint finances mean something different for every couple,鈥� says Mark LaHaie, Financial Advisor for Prospera Credit Union. 鈥淪ome couples keep their money mostly separate and only share one or two bank accounts, while others combine everything鈥攂ank accounts, credit cards, investments accounts, and more. When it comes to combining finances there isn鈥檛 a right or wrong answer, it鈥檚 about finding the best solution for you and your spouse.鈥�
Having one bank account offers a number of benefits. For example, sharing an account聽allows each spouse access to money when they need it. A few legal affairs are also streamlined with joint bank accounts. 鈥淚n the event that one spouse passes away, the other spouse will retain access to the funds in the account, as long as it is a joint with rights of survivorship account,鈥漵ays Hansen.
Finally, one of the main advantages of a joint bank account is that 鈥渢here's a smaller chance of encountering financial 鈥渟urprises鈥� when all money goes into and comes out of one account that both of you can see,鈥� adds LaHaie.
If you don鈥檛 want to merge finances, you can choose to maintain separate accounts, which allows couples to divvy up joint expenses and enjoy total freedom over their own finances. Although having similar incomes makes this much simpler, couples with different levels of income can separate finances by assigning more expensive items like a mortgage to the higher earner and utilities to the lower earner.
The most important thing when deciding to combine finances is to be honest about your feelings from the start and always keep an open line of communication. Money is frequently the biggest strain on relationships, but working together to find solutions that work for everyone can reduce some of the stress.
For advice on the best way to handle your finances while becoming one household, talk to your . Professionals such as Angela Hansen and Mark LaHaie are there to set you both up for financial success.
