Planning Your Perfect Wedding

How newlyweds can successfully blend finances

Planning a wedding is a collaborative effort for couples. But the decisions do not end when the wedding reception wraps up for the night.

Establishing a financial plan will shed light on how much you can afford to spend on your wedding. Newlyweds should make a list of financial matters that concern them, and these concerns can spark discussions about finances. Unfortunately, many couples are hesitant to discuss their personal finances because of embarrassing financial indiscretions or fear of being chastised by their spouses. To avoid conflict, consider these ways to merge newlywed finances.

• Be forthcoming with information. It may be embarrassing to have a low credit score or substantial amount of debt. Openness with regard to finances allows couples to work collectively to improve their financial standing.

• Begin slowly. After so many years of self-sufficiency, some newlyweds find it difficult to blend finances. For example, open a joint account shortly after tying the knot, using the account to pay for home and living expenses.

• Create a savings plan. Budgets that worked before you got married likely won’t be realistic now. Expenses and/ or income may have increased, so examine your finances to get an honest assessment of your finances. Once a clear of how much money is coming in and going out picture is presented, you and your spouse can begin to map out your short- and longterm financial plans.

• Establish a family CFO. Many couples opt to split responsibilities equally, while others realize one person is better suited to managing money. Whatever your decision, it should be mutual. Financial conflicts are one of the biggest contributors to marital dissatisfaction. If one person is the primary account manager, the other spouse should have open access to bank accounts, credit cards and passwords.

• Kids change everything. Plans may need to be revised as children enter the equation. Separate accounts may have worked in the past, but usually it makes more financial sense, especially come tax time, to merge accounts when children are in the picture. It may also be time to think about life insurance and disability insurance. Couples also must update investment paperwork and retirement accounts to include new beneficiaries. Both husband and wife should each write a will once children are born.