Whether it's your first Valentine's Day as a couple or your 50th, you probably have some work to do when it comes to your finances. It may not seem romantic, but financial harmony plays a big part in finding marital bliss. Couples fight about money twice as much as they fight about sex!
Financial professional Kevin Klug from Secure Retirement Solutions joined us on Wisconsin Tonight with some advice for couples.
Q: Why is money such a stressor for married couples?
For better or for worse, when you get married, you're taking on your partner's financial history, which includes their debt.
If they both have student loans when they get married and they pay for their wedding, rings and honeymoon, they can easily start out life together more than $100,000 in debt!
Not to mention, both people come into the marriage with their own ways of doing things, and their own financial habits, which can make things complicated.
Q: What are some ways couples can find financial harmony?
1. Same Page Conversations
It starts with getting on the same page on issues like financial expectations, budgeting, saving and retirement planning.
A good way to start the conversation is with a financial compatibility quiz, and I have one on my website, srsplans.com.
There are no right or wrong answers, it's all about finding common ground and discovering areas you will have to work on.
2. Money To-Do Lists
When creating financial to-do lists, it may seem fair to split things down the middle, but this isn't always the best route.
One person may enjoy filling out the monthly budget, while the other doesn't mind paying the bills. Or maybe neither one likes it and you have to take turns.
However you split it up, it's important to assign financial chores so everyone is contributing and everyone is on the same page when it comes to finances.
3. Spending Limits
Married couples need to keep an eye on their spending. One-third of Baby Boomer couples and nearly half of Millennial couples said their biggest conflict is overspending on frivolous purchases.
When asked how much their partner could spend without checking with their spouse first, the average was the exact same for both generations - $154.
Whether that seems high or low to you, the important thing is to set a limit you can both agree on.
4. Reality Bites (Sometimes)
It's important to have a realistic idea of money and marriage. And I'm here to warn you - it's not always fun.
Your car may break down; you may face unexpected medical bills, and you need to be prepared.
I recommend my clients set up an emergency fund with 3-6 months' worth of income so you don't end up putting these types of bills on a credit card.
It's also important to establish a budget up front that includes some fun splurges, like dinners and movies out, but it may not be as often as you would like.
5. Next Generation Planning
It's important to establish a plan for how you'll handle money issues with your kids.
Will you give them an allowance? How much will it be? Will they have to earn it by doing chores?
You can also save arguments by creating a plan for big expenses, like college. The early you start saving, the better. You can start putting money away even before the baby is born!
