Wedding season is here! If you’re thinking about getting engaged or you’re getting married soon, now is the perfect time to talk to your soon-to-be spouse about your finances. Waiting until you’re married to go over the budget and how you’ll handle finances could be one of the largest mistakes you make. Money is one of the top reasons couples fight, so why not establish a plan before getting married so you can continue the honeymoon long after it’s over? Here are a few key areas you and your significant other should cover before tying the knot.

 Talk about your Current Financial Situation

 This isn’t a time to be shy about your financial situation. Sit down and have an honest conversation about where you spend your money, your financial goals, and how you see yourself managing money as a married couple. Write down your priorities and compare them. You may find you have a lot in common or that you have completely different ideas about saving for the future. Talk about everything you can think of about money. A few examples include whether you’ll both continue working, how you’ll handle it when you have kids, when/how you’ll start planning for retirement (even if you’re young), and how you’ll get out of any debt either of you are bringing to the marriage. 

Create a Wedding Budget

The average cost of a wedding is still around $34,000 or even higher if you take into account the current inflationary rates. That’s a hard pill to swallow as a new couple and could be an opportunity cost for many other financial needs in your future. Before you look at any vendors or make any plans, sit down and create a budget together. Discuss your priorities for the wedding – big or small, fancy or casual, local or elope? Consider each other’s feelings and wants, but also keep it realistic so you don’t take money from your future financial priorities either.

 Open a Joint Banking Account and Create a Budget

 If you’re getting married, you’re going to join finances eventually, so why not start now? Open a joint checking account and create a budget to manage the money together. If you decide to have your own accounts in addition to the joint account, that’s okay too. Just make sure you’re on the same page. Your budget should include all necessary expenses (housing, utilities, insurance, transportation, food, etc.) plus money for each of you to maintain your independence for things like buying gifts or even buying yourself items without getting ‘permission.’

 Getting married is a huge and exciting step! Before you exchange vows, make sure you’ve ironed out the details that create a happy marriage, with ample focus on your finances. It can feel awkward at first to have the discussion, but you’ll be glad you got it out of the way. If you’re struggling to figure things out or just want an expert’s opinion on how you should structure your finances, contact me today, I’m happy to help!