How to Handle Finances When Married: Making a Joint Budget, Opening a Joint Bank Account, and More

Introduction

When two people get married, it can be an exciting time of life. But when it comes to finances, the topic may not always be so thrilling. It’s important to learn how to manage money together as a couple in order to ensure that both parties are taken care of financially. This article will discuss strategies on how to handle finances when married, such as creating a joint budget, opening a joint bank account, making financial goals together, tracking spending habits, seeking professional advice, and communicating regularly.

Create a Joint Budget

Creating a joint budget is one of the most important steps couples should take to manage their finances. A joint budget helps couples keep track of their income, expenses, and savings. According to a study from NerdWallet, “44% of couples who have combined their finances have a joint budget.”

There are many benefits to creating a joint budget. Not only does it help you stay organized, but it also allows you to see where your money is going and how much you have left over after bills and expenses. Plus, having a joint budget makes it easier to plan for future expenses, like vacations or home improvements.

Here are some steps to creating a joint budget:

• Set financial goals. Decide what you want to save for, such as a house down payment or retirement.
• Gather all of your financial information. Include all sources of income, debts, bills, and other expenses.
• Make a list of your expenses. This should include fixed expenses (such as rent or mortgage payments) and variable expenses (such as groceries).
• Determine how much money you have left after paying your bills and expenses. This is your “extra” money that can be used for savings, investments, and other purchases.
• Create a budget that works for both of you. Make sure to include room for flexibility, since life doesn’t always go as planned.

Open a Joint Bank Account

Opening a joint bank account is another way to manage finances when married. Having a joint bank account makes it easier to pay bills and manage expenses, as well as provide a level of security for both parties. In fact, according to a survey conducted by TD Bank, “nearly 40% of couples say they opened a joint checking account within the first year of marriage.”

There are several reasons why couples should open a joint bank account. For one, it simplifies the process of paying bills and managing expenses. You won’t have to worry about transferring money back and forth between accounts or trying to remember who owes what. It also provides a sense of security, since both parties have access to the same account. Finally, it can help build trust between partners, since both parties are able to see how their money is being managed.

Here are some steps to opening a joint bank account:

• Decide which bank you want to use. Consider factors such as fees, services offered, location, etc.
• Gather the necessary documents. These may include IDs, Social Security numbers, proof of address, etc.
• Visit the bank in person or fill out the required forms online.
• Choose the type of account you want to open (e.g. checking, savings, etc.).
• Decide who will be listed as primary and secondary owners of the account.
• Fund the account with an initial deposit. This may be done via check, cash, or electronic transfer.

Make Financial Goals Together

Making financial goals together is another important step when it comes to managing finances in marriage. Setting financial goals can help couples stay motivated and focused on their long-term objectives. According to a study from U.S. News & World Report, “68% of couples report having at least one financial goal.”

There are several reasons why couples should make financial goals together. For one, it helps both parties stay on the same page when it comes to saving and spending. It also keeps couples accountable and encourages them to work together towards a common goal. Finally, it can help create a sense of unity, since both parties are working together to achieve something.

Here are some steps to making financial goals together:

• Discuss your current financial situation. Talk about your incomes, debts, savings, investments, etc.
• Identify your short-term and long-term goals. What do you want to accomplish in the next few months? The next few years?
• Set realistic goals. Don’t set yourself up for failure by setting goals that are too ambitious.
• Break down each goal into smaller tasks. This will make them seem more achievable.
• Set deadlines for each task. This will help keep you on track and motivated.
• Review your progress regularly. Check in with each other to make sure you’re staying on track.

Track Spending Habits

Tracking spending habits is another important step when it comes to managing finances in marriage. Knowing where your money is going can help you make better decisions and stay within your budget. According to a survey from Credit Karma, “47% of couples track their spending on a regular basis.”

There are several reasons why couples should track their spending habits. For one, it helps you identify areas where you may be overspending. It also allows you to adjust your budget accordingly. Finally, it can help you understand each other’s spending habits, which can help avoid arguments in the future.

Here are some steps to tracking spending habits:

• Set up a system for tracking your spending. Consider using a spreadsheet, budgeting app, or even pen and paper.
• Record all of your expenses. This includes fixed expenses (such as rent or mortgage payments) and variable expenses (such as groceries).
• Categorize your expenses. This will make it easier to see where your money is going.
• Analyze your spending habits. Are there any areas where you could be saving more money?
• Adjust your budget accordingly. Make changes where necessary to ensure that you’re staying within your budget.

Seek Professional Advice

Seeking professional advice is another important step when it comes to managing finances in marriage. Working with a financial advisor can help couples make better decisions and gain a better understanding of their financial situation. According to a survey from the National Endowment for Financial Education, “43% of couples say they seek financial advice from a professional.”

There are several reasons why couples should seek professional advice. For one, it can help you get a better grasp on your financial situation. It also allows you to ask questions and receive guidance from someone with more experience. Finally, it can help you create a plan for achieving your financial goals.

Here are some tips for finding professional advice:

• Do some research. Look for advisors who specialize in helping couples manage their finances.
• Check references. Ask friends and family for recommendations or look for online reviews.
• Interview potential advisors. Ask questions about their qualifications, experience, fees, etc.
• Schedule an appointment. Meet with the advisor to discuss your financial goals and concerns.
• Be honest and open. Share all of the relevant information so the advisor can give you the best advice possible.

Communicate Regularly

Finally, it’s important to communicate regularly when it comes to managing finances in marriage. Talking openly and honestly about money can help couples stay on the same page and avoid potential conflicts. According to a survey from Fidelity Investments, “70% of couples who communicate regularly about money say they are satisfied with their relationship.”

There are several reasons why couples should communicate regularly about money. For one, it helps both parties feel heard and understood. It also allows couples to express their concerns and come up with solutions together. Finally, it can help create a stronger bond between partners, since both parties are working together to achieve a common goal.

Here are some tips for communicating regularly about money:

• Set aside time for money talks. Schedule a regular time to discuss money, such as once a month.
• Be honest and open. Share your thoughts, feelings, and opinions without judgment or criticism.
• Listen to each other. Try to understand where your partner is coming from and be willing to compromise.
• Focus on solutions. Instead of pointing fingers, focus on finding solutions to any issues or problems.
• Be patient. Money conversations can be difficult, so be patient and try to stay calm.

Conclusion

Managing finances in marriage can be difficult, but it’s an important part of maintaining a healthy relationship. Couples should create a joint budget, open a joint bank account, make financial goals together, track spending habits, seek professional advice, and communicate regularly in order to ensure that both parties are taken care of financially.

By following these tips, couples can gain a better understanding of their finances and build a strong foundation for their relationship. With patience and commitment, managing finances in marriage can be a rewarding experience.