Discuss Your Finances Before Saying "I Do"

When you're in love, you want to know everything about your partner. And that can extend to learning about each other's financial situation as well. It may not sound very romantic, but you may be able to avoid future problems by discussing this sometimes touchy subject. Many couples don't want to think about money when they are deeply in love, but in reality it is a useful discussion to have before the wedding vows.

When to Talk about Money

As soon as you begin to realize that you are getting serious about your relationship, you may want to broach the subject. As you share your dreams about your future life together, you can discuss your current financial situations and your long-term hopes.

What To Discuss

There are many possible questions you can consider-including whether you both have the same viewpoint about saving money. Other considerations may include your financial goals. Do you want to save for a down payment on a house? Do you want to have children? Do you want to be a full-time stay-at-home parent? Such questions can help you avoid unhappy surprises in the future.

Dealing with Credit and Savings

Your credit rating will likely come up in the discussion. You may have shining credit, but your future spouse may have a different history. So it can be a good idea to order your credit reports and go through them. Doing so can give you a perspective on how much debt you both have and help you decide how to deal with it. Perhaps your future spouse has a 401(k) and other savings and stocks. You might have other resources as well, such as property or a trust fund. You will probably want to decide whether you will combine your resources. You may even want to check into a prenuptial agreement, particularly if there are children from a previous marriage.

Your Savings IQ

You can have a philosophical discussion about your individual attitudes toward spending, but try to have some fun with it. Does one of you enjoy eating out five times a week or buying new clothes often? Do either of you like to spend money on gadgets that you may or may not need? From this discussion, you might realize that one of you is a natural spender and the other a natural saver. To avoid problems in the future, consider making a plan of action. Decide how much is too much to spend in a month and how to pay for big-ticket items.

Bank on It

Other financial decisions are whether to have a joint checking account or separate accounts, and whether to keep your credit cards separate or to put your partner's name on them as well. Discuss who will pay the bills and keep track of daily expenses, or whether you will share this role. Try creating a budget for yourselves; this will likely be a major part of your life together. Learning to communicate about money and to compromise from time to time is what marriage and love are all about. It's never too early to begin thinking ahead to your financial future together.