By Joan Honeycutt, Vice President Onarga Facility
June has traditionally been and continues to be the most popular month for weddings in America. If you are in the midst of planning for one, you know just how many things there are to take care of. Book the venue – Check. Buy the dress – Check. Send the invitations – Check. Plan the honeymoon – Check. But have you considered the important task of merging finances? Every couple planning a walk down the aisle should look ahead to the days after the ceremony and how they will handle money once they have joined their lives together. Just like your wedding day, your joint finances require thought, planning, and wise decision-making. Start your conversation by considering these questions.
Will you combine all finances or keep separate accounts? Some couples choose to merge all income and expenses into joint accounts while others keep their own accounts. In the latter case, each partner manages his/her own income and expenses are divided between the two partners.
Who will manage the finances? The answer to the first question will influence how this one is answered. If all the finances are combined, then either one person can be in charge of the finances or the responsibilities can be split between the two of you. On the other hand, if you are keeping separate accounts, it will be important to know who is responsible for individual tasks, such as paying each bill, tracking expenses, or saving for anticipated purchases.
What are your goals? It is important not only to address daily financial tasks, but also to contemplate what financial goals you have for the future. Couples should discuss the goals that they have for earning, saving, investing, and spending their money. Having a unified perspective on finances will enable a couple to make wise decisions about goals and encourage each other in working toward those goals. The result is a better chance of actually achieving the financial goals you’ve set for yourselves.
If you are looking forward to a wedding in the near future, take some time to talk through these issues with your future spouse. And then stop by any of our convenient branches during regular banking hours and let us help you get started. The friendly staff at Federated Bank are always available to help you merge your accounts and make financially sound decisions.