As couples begin the process of preparing for marriage, there are several things that they must do. The must decided where they are going to live, how many kids they want to have, the rules of their marriage and so much more. One item that is extremely important is finances. Couples getting married need to discuss these key financial points: 1. financial debts, 2. financial goals, 3. opening accounts, 4. making budgets, 5. deciding who is going to be the accountant for the family.
The first thing that any newlywed couple or couple about to get married needs to do is to understand what they will be bringing to the table financially. So they need to value what they have together in total assets which includes investments, bank accounts, cars, electronics, properties, and anything else that will fetch a price. This will give the couple a good idea of where they are starting out financially together.
The purchase of automobiles is an important discussion that couples need to have. How long does each partner plan on keeping their current vehicle? When an upgrade occurs how much money will be allotted to that purchase? These are questions that need to be answered early on in the relationship.
Income is the next item that should be discussed so that they couple knows how much money is coming into the household. This is the basis from which the couple will build their financial wealth.
Next, one needs to look at debt. This covers everything that the couple owes on. Mortgages, rents, credit card payments, student loans, anything that requires a steady payment, even car insurance, home insurance, life and disability insurance and the like needs to be carefully assessed by the couple. For some reason many newly married couples forget credit card payments that need to be made. This is usually because they carry such a high balance that they’ve put it out of their minds so as not to “worry” about it.
The home’s equity, if they own a home, is of tremendous significance as well. First, they need a place to live, but secondly having equity in a home is one of the easiest ways to eventually accumulate wealth. Have the couple find out what their home’s actual fair market value is. With the advancements in what is located on the Web, they can look over what similar homes were sold for, themselves. Equity is the difference between fair market value and what remains to be paid in mortgages and such. They must be sure to look at equity loans too when arriving at the home’s equity.
Anyone helping a newly married couple with the financial side of their new status needs to be sure that they have opened a joint banking account. The account should be an “or” account but never an “and” account, so that either one can withdraw and use the account.
Any outstanding retirement accounts that the couple has should be changed to reflect the new spouse as the beneficiary. If life insurance is going to be purchased, the couple needs to discuss how much the policy should be for and again should list each other as beneficiaries.
If neither of the partners has a retirement plan then they should definitely look into getting one together because there will be no social security benefits for young newlyweds getting married these days.
Dorthy Weatherbush didn’t have TheKnot.com to help her plan for and get ready for marriage. With the help of TheKnot.com couples now have lots of resources to not only help them plan for a wedding, but for marriage, kids, and the couple’s first house.
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