Money Management for Newlyweds

Share This

Relationships aren’t like they used to be a generation or two ago. The path to a ceremony is a more gradual one, with couples typically living together beforehand and sharing expenses. Women, through both necessity and choice, continue to earn an income after marriage and are confident in managing their own money. The result is that young couples are increasingly managing their financial affairs separately. Making a life-long commitment should be a trigger to review how money is managed within a relationship. Over a lifetime, a degree of financial interdependency can arise, especially if there are children. The ideal outcome is that each partner’s needs and wants are both respected and protected and money is managed effectively within the relationship to achieve common goals.

It is very common for partners to feel differently about how much money should be spent now rather than saved to spend later and how much money should be kept on hand as a slush fund in case of unexpected expenses. Some people are uncomfortable using credit cards, while others feel nervous about having debt. To avoid ongoing arguments about money, there needs to be agreement on these money basics. It is very important that each partner continues to have access to money of their own. There are two ways to achieve this. Incomes can be paid into a single account for joint expenses and goals with a transfer to each partner for personal spending. Alternatively, incomes can be paid to separate accounts with a transfer to a joint account for expenses and goals. It’s really a matter of deciding how much of each respective income should be used for joint purposes. In a healthy, committed relationship, allocating a high percentage of income to joint expenses and goals enables money to be used more effectively.

Related Articles

Liz Koh

Responsible Investing

There is a worldwide trend for investors to want to make a positive contribution to the world by investing in companies that are socially and environmentally responsible. If you are passionate about the effects of climate change, the scarcity of food and water, and social or environmental policies in general, then you will no doubt wish to ensure that the companies in which you invest are going about their business in a manner that is consistent with your views.

Read More »

Stay in the loop

Keep up to date with the latest developments from Enrich Retirement