You’re engaged and it’s time to celebrate! It’s an exciting moment in your life and there’s a lot to look forward to in your future. However, you must avoid letting love blind you from having serious conversations about money.
It’s important to think through what happens after the wedding when all the excitement settles down and reality sets in. It’s also in your best interest to learn more about money conversations for newly engaged couples that you must have.
Find out tips and advice for how to talk finances before marriage to help you come together and succeed as a couple financially.
Beliefs About Money
You each come from a different background and walk of life. You’re going to have and hold different beliefs about money. It’s important not to judge these beliefs and instead focus on openly sharing them and finding common ground.
A wise first step is to dive in and discover more about each other’s beliefs and mindset when it comes to finances. What you like to spend your money on and what motivates you, for example.
Talking about money before marriage isn’t an easy conversation but it’s necessary. Be willing to discuss your success and struggles and find out more about what perspective each of you is coming from.
This is also a good opportunity to learn expectations about how you’ll handle accounts—will you combine all accounts, each have separate accounts and contribute a certain percentage of your income into a shared account, or something else entirely? While you don’t need to make any decisions just yet, take some time to talk through your individual and shared expectations.
Financial Histories and Backgrounds
Another topic to touch on now that you’re engaged has to do with your financial histories and backgrounds. It would be best if you covered some of the following ideas and questions:
- How did money impact your life growing up and your parents’ relationship?
- How are your financial backgrounds the same or different?
- Have your money beliefs been altered by your family’s class or economic status?
- What was it like growing up? Did you feel financially secure?
You must take the time to learn about your partner’s background and family life when it comes to money to better understand where they’re coming from in their own beliefs. Many scripts about life and finances develop in childhood and are carried over into the adult years.
Your goal is to not only gain clarity about your future spouse’s opinions and values but to come to a mutual understanding about laying a foundation for your future together.
Touch on Life and Financial Goals
Goal setting is common for individuals and couples. It should be no different when you’re approaching the topic of finances and understanding more about how to talk about money with your fiancé.
Consider your life and financial goals that you and your significant other have. Share your goals and then think through how these will impact your family life and finances.
Reflect on how you can take proper action to support one another’s objectives. Dream and dream big but then figure out a game plan together to turn these dreams into reality.
The Importance of Debts and Credit History
As you decide how to talk finances before marriage and the best way to approach the situation, you should also touch on debts and credit history. It’s a vital topic that must be discussed if you want to have a happy and secure financial future as a couple.
It’s important to not only discover more about what types of debts each other has and are out there but also to plan for paying them down and off. Talk about your credit scores and history and any explanations you need to give for the information you’re sharing. It’s wise to bring it up because your credit can impact large purchases and decisions such as buying a house or car or getting a loan.
Commit to fully disclosing your financial history and current debts and you’ll be at a much better place as you enter into married life.
Dive Into Your Money Habits
Your spending and saving habits are another essential aspect of your money talk. Be sure to cover how much each of you is earning and how important saving is to you.
Now is also a wise time to talk through if you want to follow a household budget. Get on the same page about what money you already have to work with and what you want to have in your accounts for the future.
These conversations are vital to you getting on the same page financially and working toward the same goals.
Did you find it helpful to better understand how to talk finances before marriage? Do you want to learn more about budgeting tips for newlyweds? Check out our blog to gain helpful insights and best practices.