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Managing money as a married couple can greatly differ from managing your own money as a single person. Where you previously only had to budget and save for one, and think about your own needs and wants, there is another person to think about, including their life goals and financial habits.
For National Marriage Week, Olly Cheng, Financial Planning Director at Rathbones, shared his top tips on how to manage finances as a married couple.
Think about what's yours, mine, ours
Every married couple manages their finances differently, whether that's splitting everything 50:50 or having one salary used to pay for everything day-to-day and the other to save for the future - it's whatever works best as a couple. For those who feel comfortable, setting up a joint bank account can help keep track of your joint expenses.
However, before signing up to this be aware that if one person has a bad credit rating, as soon as you have an account together you will be 'co-scored' and your credit ratings will become linked. Whether you're married or not, it's wise to maintain your own financial independence too by keeping your own bank account and savings.
Consider your financial compatibility
'Financial Compatibility' is very important to the long-term success of a marriage. It's not only about pounds and pence, but also attitudes, aims, and beliefs. If you are to share a lifetime with someone, it helps if you are both on the same wavelength when it comes to your life goals. Do you both have the same aspirations? All life goals will require saving for so it's good to know you are on the same path early on in your relationship. As part of this, take some time to figure out your money style. For example, is one person more of a saver than a spender or vice versa? It's best to be open and realistic about this so it's clearly understood in the partnership.
Don't be financially imbalanced
It's very easy in a relationship to have one person take the lead in managing all the finances and bills. But this can leave the other person quite vulnerable without even realising. For example, if the main bill payer or 'finance controller' became seriously ill or passed away, would the surviving partner know how to access their finances or how to pay the bills? Make sure you have regular open conversations about your finances as a couple, and that you're both aware of who your suppliers are, how you access your account, and that both your names are listed/registered. If the worst were to happen and you're not named as an account holder, you could be locked out of your finances for some time. It's worth considering how your emergency fund is kept and where the day to day money for expenditure comes from.
Make a will
A will is an important legal document that expresses your wishes, such as how to split your estate, bank accounts, and any personal items, therefore writing a will is one of the most important things you can do for any loved one. It's common for many people to only write a will when children arrive or a health scare occurs, but really, they should be relooked at and updated at every important life stage, including when you get married. Many people don't realise that whilst marriage will invalidate your current will, divorce does not and so unless you update your will you may still be benefitting an ex-partner. There are several different types of wills you can have, so it's best to speak to each other and an adviser on what would suit best.
