Money Mistakes Newlywed Couples Make

After you recently got married or are close to tying the knot, take certain steps to avoid these money mistakes newlyweds make. Doing so may bring you closer to achieving your financial goals.

1. Avoiding Honest Conversations about Money

Money can be an intense topic but avoiding honest conversations about how you are going to handle financial decisions in your marriage is not a solution.  It might be difficult to tackle but sit down with your spouse and discuss your finances. Make sure you have honest but productive conversations (several if needed). The purpose is to help each other set goals and then encourage each other to reach them.

2. No Budget?

Budgeting is crucial if you are newly married and working to achieve financial targets/goals together. Creating your household budget typically consists of reviewing your monthly income, monthly expenses, debt, and spending patterns. Once you know what you have coming in and what is going out of your budget, it is easier to find areas where you can adjust things.

3. Not Tackling Pre-existing Debt

Becoming debt-free is important for anyone but learning how to manage your money as a married couple can help strengthen your relationship and financial situation. If either spouse enters a marriage with pre-existing debt, it may be up to the both of you to work on eliminating that debt together. This could involve dealing with student loans, credit card debt, or other types of debt. On the other hand, letting your spouse deal with their pre-existing debt without offering your support most likely will not promote a feeling of mutual understanding and unity.

4. Not Saving for a House

The price of a home will vary depending on where you live, your budget, and the necessities of what you need in a home. If you are saving up for the down payment, it will be easier when you are ready to take the plunge into home ownership. In addition, it could help if you improve your credit score so you can qualify for loans.

5. Avoiding Planning for Costs of Children

If you are planning on having a family down the road, you need to consider your finances. Knowing how to save money before you have a family is key. If you can put aside money now into savings, you could potentially have a lot more financial stability when you add to your family. Think about the many costs associated with having kids, such as diapers/wipes, clothes, toys, food, activities for kids, daycare, extracurricular activities, and the list goes on.

6. Not Considering Retirement Savings

When you are a newlywed and worried about buying a house, starting a family, or paying for your honeymoon, you probably are not thinking about retirement. However, retirement and planning for retirement is important to think about sooner rather than later. It can get more difficult to save up the retirement funds you want the longer you wait.

In a Nutshell

Learning how to manage your money as a newly married couple is important. While everyone makes mistakes, especially when adjusting to new circumstances, that does not mean you cannot prepare yourself ahead of time to make as few mistakes as possible. In your new marriage, setting and working toward financial goals together, can help take money tension out of your relationship. Additionally, you are likely to have increased financial stability years down the road if you work to avoid money mistakes now.