With wedding season upon us, you may be wondering if marriage is in your future. If you decide it is, and your partner agrees, the next best thing is to ensure both of your finances are in check. Wedding planning aside, one must remember a marriage is a combination of both partner’s financial assets. Creating a secure financial plan before the big day is a good place to begin. Here are a few helpful tips to get you started:
Ask the hard questions about your financial goals as a couple
Prior to the partnership, each person might have had their own personal financial goals. Now you must ask, what do those goals look like as a couple? Do you plan to buy a house, start a family, travel, or pay off debt? Whatever the goals look like, it is crucial to ask these questions which will help lay the foundation for how you want to prioritize your collective finances, and keep your financial plan on track.
Communication is key
According to the National Foundation for Credit Counseling, about 70% of adults had negative thoughts and feelings about discussing money with a fiancé. During these discussions be sure to be open and transparent. For example, the couple must decide if one partner will be in charge of the finances on a day-to-day basis. Or, do they want to open a joint account? Splitting expenses can be a tricky topic especially if one partner makes more than the other; however, you must be comfortable talking about all components of your financial future with your partner.
Start to put together an emergency fund
Life is full of ups and downs and being prepared for the bumps in the road may help protect you in the long run. Putting together a decent emergency savings account before marriage may act as a safety net later, if needed.
Marriage is just the beginning of your financial journey
Your wedding day is simply the start of many exciting new adventures and memories as a partnership. It also marks the beginning of your combined financial journey. Setting a proper foundation for your savings and expenses will help you reach your personal and collective goals in the future. Finances play a big role in everyone’s journey, so don’t be afraid to have a conversation about it. Creating a plan for your financial future helps ease any anxiety and eliminates the unknown, while also setting the stage for a happy and prosperous life together.
The information provided is general in nature and should not be construed as a recommendation or an offer or solicitation to buy or sell any securities and is for informational purposes only, does not represent legal or tax advice, and is subject to change. Oppenheimer & Co. Inc. does not provide legal or tax advice. However, your Oppenheimer Financial Advisor will work with clients, their attorneys and tax professionals to help ensure all of their needs are met and properly executed.