Discussing
Finances An Important First Step for Newlyweds
(MS)
— With wedding costs getting higher each year, much
of a bride and groom’s pre-wedding focus is on finances.
But as any newlywed knows, the focus on finances isn’t
lifted once the walk down the aisle is complete and the
honeymoon is over.
In fact, newlyweds face a number of financial to-do’s
once they’ve arrived home. Though some might seem
obvious, due to the hectic nature of weddings it’s
important to review just what you have and havent done.Changed
policies? Chances are, both spouses have separate insurance
policies, investment accounts, 401(k) plans, etc. Once married,
it’s prudent for couples to change the beneficiaries
on such accounts should something happen to either person.
Regardless of what each individual’s assets are, it’s
important to make these changes as soon as possible after
the wedding, when doing so is still fresh on your mind.
Examined your coverages? Couples should compare each other’s
insurance policies. Oftentimes, couples save money when
combining policies such as automobile insurance. Check for
duplicate coverage as well, so you can avoid essentially
paying for the same thing twice. If you both have renter’s
insurance, one person can now drop it, since it’s
likely you’ll be living together.
It’s also important to reconsider health insurance
plans offered by both your places of employment. Most companies
offer a choice of coverages, some which are better for singles
and others that benefit married couples. Also, sometimes
it makes more sense for each spouse to keep their own coverage.
Either way, examine both the existing policies and other
options and determine what’s best.
• Updated your will? Most singles don’t even
have a will, but it’s important for married couples
to have one in case of an accident. Many couples prefer
their spouse have the power of attorney should they get
in an accident, but unless there’s a will stating
that preference, that position can be challenged by family
members. A will ensures your assets will go where you want
them to go in case of an accident, and will make sure the
person you want to handle such matters is the one who will
end up handling them.
Discussed
debt? While most couples have discussed longterm financial
goals before walking down the aisle, even the closest of
couples might be too embarrassed or ashamed to discuss their
personal debt with their spouse. However, each person’s
financial background will impact the couple’s financial
future, so if you haven’t discussed each other’s
debt already, do it soon and develop a plan for eliminating
debt.
This
is also a good time to bring up a budget. Due to the escalating
cost of real estate, many newly married couples cannot afford
to purchase a home right after they’ve gotten married.
Since home ownership is a goal of most married couples,
when discussing debt it’s best to establish a mutual
budget as well. Lots of couples feature one spender and
one saver, but the way for both to be happy and ultimately
realize financial goals is to agree upon and adjust to an
established budget.
CAPTION: To avoid breaking the bank, newlyweds would be
wise to sit down and discuss finances as soon as possible.
