Make Sure You Have These Essential Money Conversations Before Marriage
- Author: Mary Singleton
- Posted: 2024-10-04
February might be one of the most romantic months of the year, but don't let it distract you from the more practical side of your relationship. You need to remember that marriage is also about combining finances with someone else. Though financial discussions might not seem incredibly romantic, it is still essential to communicate about money before you get married. If you want to strengthen your relationship, make sure you discuss these five things before you combine your finances with someone else.
Investment and Saving Strategies
This is one of those topics rarely brought up during the early days of dating, but it can be a source of many arguments later on. You need to talk with your partner about how you both feel about investing. Discuss all your strategies, plans and goals.
Do you prefer to invest in a stable 401K or experiment with trading stocks yourself? How much of your money do you want tied up in investing? Would you rather invest jointly or individually? Talking about these sorts of things early on can help you and your partner get an idea of each other's financial goals.
Division of Bills
This might be something you have already talked about briefly when deciding who pays for dinner. However, it is a good idea to have a defined plan in place for big purchases in the future. There are all sorts of ways to divide shared bills. Some couples like to do a rigid 50/50 split down to the last cent, while others are fine with a more casual division.
If you and your partner have drastically different income measures, you might even want to divide bills up based on percentage. For example, if one partner makes 25 percent of what the other does, they could just pay 25 percent of all bills. There's no single right way to do it. You just need to find a plan that works for you and your partner.
Future Financial Goals
Don't get so caught up in dividing current bills that you forget to discuss the future. Talk with your partner about what sorts of financial goals they have for the future. Ask about when they want to retire and what sort of savings they want to gain.
You should also try to learn how much money they need to feel comfortable and what sort of standard of living they prefer. It can also be a good idea to discuss potential larger purchases, like a home, business, or a child's college tuition. This helps couples avoid fights about what they will buy later on, and having concrete goals will give you something to work towards.
Disclose Any Financial Obligations
If you never talk about money, you might run into some big surprises after marriage. Take the time to share your current financial status with your partner. Let them know about any debt or regular expenses you have. If you know your money will be going towards something like a medical procedure, be sure to mention this too.
Talking about debts and obligations might seem like an awkward subject, but it is important to share. Being open with your partner prior to marriage will help the both of you make plans for handling these expenses. You can also use this opportunity to talk about whether you want to help your partner with any debts.
How to Handle Challenges
Planning for trouble can keep little things from turning into big issues later on. Try to discuss what you would do if you run into financial issues later on. Would you sell assets or use a credit card to pay off an unexpected expense? How strict of a budget are you willing to go onto? This helps you and your partner handle future problems with ease instead of getting confused about saving strategies.
Ultimately, you will find that talking about finances early on helps to strengthen your relationship. It ensures you and your partner are on the same page, so you can both focus on working towards common goals. Many people avoid these talks because they seem so serious, but you do not have to have a long, formal discussion. Instead, talking about finances can be an ongoing conversation. By learning to discuss finances comfortably, you and your partner can prepare for your financial future.
