Managing Finances in Marriage: Guide for New Couples

Wedding planning has a lot of moving parts, but one important aspect often overlooked is what comes after the big day: your finances. It’s important to consider how you will discuss money openly before marriage, how you’ll combine your finances after marriage and how you will manage money as a couple.

Building your marriage on a strong foundation means having those conversations early — whether it’s discussing how you plan to combine bank accounts after marriage, looking at what kinds of insurance you need, thinking about merging credit cards or sharing financial goals for the future. 

Though money can be a fraught topic, it doesn’t have to be stressful. Everyone comes from different families with different money situations and expectations. But with a little bit of foresight and humor, the finance conversations can be calm, informative and even fun! 

Here are our tips to help new couples start meaningful conversations about finances, consider what money will mean in their new marriage and tips on how to find a budgeting app that works best for them. Oh — and congratulations! 

Step 1: Discuss Your Financial Goals

Schedule some time, pour a fun beverage and sit down with your future spouse to discuss the financial goals you both want to attain. Get ready to be honest: It’s important to talk openly and honestly about your current finances and your future financial goals.

What does saving money look like to you? What does your personal finance history look like? What are financial goals in your family, and do you see things the same or differently? Discuss in detail what you would like to accomplish financially with your partner. Doing so will better prepare you both for what comes next.

Step 2: Prepare a Budget

Working together to create a budget is one of the most important things to do as you combine finances into one household as a couple. After setting your financial goals, you will need to set a household budget for those goals.

The household budget should be created with you and your partner. Do you plan on buying a house? Do either of you have student loans that need to be paid off? What does your vacation budget look like now that you have merged your finances? 

Preparing a budget for your future is crucial to better strategize for expected financial responsibilities as well as unexpected responsibilities (like car expenses, home expenses, student loans and so on). When you have a budget in place, you are less likely to stress about your finances. A budget will allow you to work towards your goals and stay on track.

Looking for a tool that can help you organize your finances? Budgeting apps can help simplify your budget by putting everything in one place, giving you visibility into your money. Many apps provide dashboards for more than one person, such as Monarch or Honeydue, which lets you customize what you share with your partner based on how you’ve structured your household finances. 

Step 3: Decide Bank Accounts — Joint or Separate?

What will your joint finances in marriage look like? Should you create separate or joint accounts? There isn’t any right answer. It just depends on your goals and personal preferences. 

However, it is important to have both a savings and a checking account. Use a savings account to do just that — save money for the future. You should aim to have an emergency fund set aside, and most financial professionals suggest saving about six months of expenses.

The checking account should be used for anything that you need to pay monthly. Talk about other accounts you may want, such as a sinking fund to save for a joint trip or an account to save for future children’s education.

Step 4: Consider Your Credit Cards

Merging credit cards after marriage can help reduce debt and help you stay within the budget you and your partner have set. There are a few credit risks to keep an eye out for after you get married. Getting married has no effect on your credit score or report — your credit history, and your spouse’s, will remain unchanged. But getting married can change what role credit plays in the relationship between you and your partner. 

Remember, your credit score is also important when making large purchases such as a house or a car. If you or your partner has bad credit scores, it’s likely that you won’t be offered a lower interest rate. 

Step 5: Consider How to Combine Insurance 

After a life event like getting married, insurance coverage often shifts. Newly married couples should talk about selecting the best health, life and auto insurance that is available.

Health Benefits

Look at your employee benefits and go over the different types of insurance you currently have. It’s often best to look at what your employer offers for married couples and families. Look to see if marriage counts as a qualifying event. This will allow you to upgrade your plan without having to wait for the next enrollment period for these benefits.

Newly married couples should review their current health plan options and see which partner’s employer offers the best plan for you.

Life Insurance

Life insurance can help alleviate stress and worry for newly married couples. Life insurance has many benefits that couples should discuss and look into. Younger people don’t tend to invest in life insurance as much, but it’s most beneficial when you are young. The younger you are, the easier it is to get a great life insurance plan with an affordable premium.

Auto Insurance

You have probably already heard about how safe driving can help lower your auto insurance. But what about when merging with your partner? There are a few ways to lower your auto insurance, and bundling your cars into one account can also help.

Have Peace of Mind Knowing You’re Covered

We understand that this may be a lot to take in, but we can help you get started! Reach out to a Farm Bureau financial advisor today to figure out what the best plan is for you and your spouse.