For better or worse, if you don’t communicate openly about money matters, your marriage can end up in hot water.
by Mary Schwager, Consumer Watchdog
When you say “yes” to tying the knot, you’re doing more than joining hearts and lives, you’re also joining finances. Gulp. For better or worse, if you don’t communicate openly about money matters, your marriage can end up in hot water.
Estate planning attorney Ann Margaret Carrozza suggests that the key to avoiding these issues is to work as a team. “When you’re in a partnership it’s so important to set goals together, and gain knowledge to create financial security going forward. This way you have common goals and there’s never any confusion about how to invest financially.”
Whether you’re married or about to walk down the aisle, Carrozza says these are five money conversations you should have with your spouse:
1. Create your personal financial blueprint: Few newlyweds are fortunate enough to have significant assets to invest and plan for. But with a relatively blank financial slate, two people can chart their vision; make concrete goals, and together gain knowledge to create financial security going forward.
Initiate the discussion by throwing an acquaintance or neighbor under the proverbial bus: “Mark and Pam sure have beautiful cars/clothes/jewelry etc. Kind of makes me think that they will be forced to work forever to keep up with the interest payments alone!” Newlyweds should seek to educate themselves on financial matters by attending area adult education courses (preferably free ones) and reading financial books (borrowed from the library). Saving and investing that first $10,000 will provide a calm far greater than any 10-day cruise ever could.continue reading »