Summer is a very popular time for weddings. For the bride-to-be and groom-to-be, months leading up to the wedding are spent choosing flowers, dresses, tuxes, caters, cakes, rings, and everything else that goes into wedding planning but one important topic that isn’t discussed by most engaged couples is future finances. Here are 10 questions a couple should ask each other before saying I do.
1. Where would you like to be in five or ten years?
This question relates to a physical location as well as life goals.
2. What are our assets and liabilities?
This relates to debts and other financial matters.
3. Should we keep our finances separate or combine them?
Decide whether or not you want to have separate accounts and have a
joint-account for paying bills, or if you want to have a joint-account for
everything plus a savings account. There are advantages and disadvantages
to both ways but you need to decide what will work best for the marriage.
4. What about our investments?
Having the power of combined accounts works in the favor of the couple as a
whole in terms of growth. Fewer separate accounts and higher balances
means fewer fees.
5. How will we handle daily spending decisions?
This question will help you formulate a daily or even weekly spending budget
that will help to keep the finances on track.
6. Who will be responsible for paying the bills and preparing the
Selecting one person to handle bills will help prevent bills being paid
7. What is your tolerance for financial risk?
Visit Kliplinger.com for the risk tolerance questionnaire that will give
some insight as to where the two of you fall on their risk tolerance
8. What are our insurance options?
For a marriage in which both spouses work, chances are one has health
benefits costing less or offering better options than the other. So it is
worth it to compare plans and decide whether one should be added to
the other’s plan or to continue on separate plans. This is also a good
time to change beneficiary options.
9. How does your credit report look?
Prior to walking down the aisle, discuss your credit history. Get your
free annual credit report from annualcreditreport.com to make sure there
are aren’t any errors on the report. Discussing your credit history is
vitally important before buying a house as a couple.
10. How will we tackle existing debt?
Decide as a couple how you want to handle paying off existing debt
that was acquired before marriage. This is where deciding on joint-
accounts and separate accounts comes into play.