Should the Bride & Groom Combine Bank Accounts after the Wedding?
Should You Combine Bank Accounts?
Money is by far one of the biggest stressors—and causes of fights—for engaged and married couples. Brides and grooms love to skirt around the ultra-uncomfortable topic of finances. But, many future fights can be saved if couples discuss these three things early on:
1. Should we combine bank accounts?
According to a recent Bankrate.com survey, 77% of married couples share at least one bank account. Sharing a bank account may be necessary if one partner makes less than the other, or when one partner will be responsible for paying larger, shared bills (such as a mortgage or utility payment). If the idea of providing full access to your bank account makes you squirm, a compromise may be a separate account in which a certain amount of funds are pooled.
A smaller percentage of couples choose to keep separate bank accounts. This choice can work well if both partners have steady income and can agree on who pays what bills. It’s still important to have some visibility into your partner’s finances so you can agree to a family budget (see below).
2. What will our budget be?
Your best bet is to lay it all on the table up-front: How much money do you make per year? How much money do you spend per month? What do you spend your money on? How much do you save?
Together, you’ll need to decide what your new budget will be based on your income and financial responsibilities. You may find your spending habits need to change due to your new lifestyle change and your partner’s wishes. Many partners choose to take on or inherit larger financial commitments, such as the purchase of a home, soon after marriage.
3. What will our funds look like in the future?
As a newly married couple, you’ll need to agree on what you want your finances to look like in the years to come. Do you plan to rise in career rank in the future? Do you want to make room for kids in the next five years?
Make a five, 10, and 15-year plan together, and then determine how much you’ll need to save to achieve those goals. Savings should be included in both partner’s monthly budget. Don’t forget to include some padding for unexpected expenses and changes in circumstance (such as one partner losing his or her income).
with love & style from: Sandy D. (bridal blogger extraordinaire)
(photos from Pixabay, Pexels)