'Til Debt Do Us Part: How To Best Tie The Financial Knot

Many couples discuss money, and don't even know how to best go about doing so. Money is always last on the list when it comes to things couples discuss. Debt-Free America would like to offer tips to married or soon-to-be married couples on how to effectively communicate about this topic.

San Diego, (PRWEB) April 29, 2006 -- “For richer or for poorer” – Many couples say these exact words during their wedding ceremony, but talking about money seems to the last item on the list to check-off when planning a wedding, and the least desirable topic to discuss among married couples. But, with one of the leading causes of divorce being financial difficulties and money arguments, it is important to take the time to discuss your finances in order to avoid a future sticky situation and a possible sore spot in a marriage.

Debt-Free America would like to offer tips on how couples can work together to address money issues and responsibilities:

Communicate

It is important to be open and honest when communicating with your partner. Generally, Americans don’t like to discuss their finances – even with their partner. Many are uncomfortable telling others how much they make and often avoid the subject of finances during conversations. In fact, approximately 30% of individuals do not tell anyone their income, and this statistic includes not telling their spouse. It is important to discuss all of your financial issues, history and debt amounts in order to properly budget each month – and to make sure all of the financial needs are being met.

Determine your spending style

Sit down with your partner and determine your spending style. Are you a spender or a saver? Are you an impulse buyer or coupon clipper? It is important to understand the other person’s spending habits and to compromise in order to accommodate each other’s financial style.

Discuss financial goals & values

Evaluate what is important to you to spend your money on. Would you like to own a home and a yacht? Would you like to travel? Discuss each other’s financial goals and accommodate for each individual’s ideas for the future, in order to accomplish both.

Set a budget

A budget allows for everyone to be on the same page about finances, it shows where the money should be going and also eliminates living beyond your means. A budget should fit both partners’ needs and accommodate both incomes (that means telling your spouse your income). When budgeting, consider everything you spend money on, a budget doesn’t do any good if you leave things out. It’s a good idea to track your spending (write down everything you spend money on) for a few months to get the most accurate.

Have regular monthly financial meetings with your partner

Arrange a regular meeting once a month to discuss finances and your budget. The meeting can be over a romantic dinner or at a coffee shop sipping mochas. You don’t have to spend all night talking about money, but it is important to take time each month to figure out where you are financially.

During this meeting, ask the following types of questions: Where are you in reaching your goals? Do you have extra money this month to put toward retirement or a weekend getaway? Are there extra expenses coming up that you should start planning for?

Discuss joint versus individual checking accounts

Traditionally, when a couple gets married, both incomes go into one account and one partner manages the finances. While it is a good idea for one partner to be in charge of the budget and the bills in order to avoid confusion, the husband and the wife should both be active participants.

While having separate bank accounts have become the new trend in marital finances there are pros and cons of both situations. Having a joint account encourages open and free discussion about finances. But, having your own accounts helps liberate you from the marriage and avoids the “I’m an adult, it’s my money, why should I have to ask?” feeling.

What should you do? All of the money should go into the joint account, but as part of the budget, it is important to allot each person a “slush” fund for them to use toward whatever they would like – shoes, electronics, clothing or dinners out with friends.

The bottom line is to be honest and communicate with your partner. You are not only partners for life in love but also are in a business together. Being open about each other’s financial situation will save for possible heartache later in life and will lead smoothly to your golden anniversary.

For more information about credit counseling, or to get help in managing your finances, please visit www.debtfreeamerica.com or call toll-free at 1-888-268-2626. Financial advisors at Debt-Free America are available to discuss your budget, expenses, and other financial matters with you at no cost. They have had years of training and education in the budgeting and credit card industry and are available to use as a free resource.

WHO:      

Debt-Free America

WHAT:   

Money tips for married couples
            
WHEN:   

Interviews are available immediately and ongoing

WHERE:   

In-studio or phone interviews with local Debt-Free America counselors

Debt-Free America is a 501(c)3 non-profit, community service organization offering confidential and professional credit counseling, debt management programs, and financial education to consumers nationwide. Debt-Free America is dedicated to providing FREE services to help financially distressed families and individuals effectively manage their personal finances. Debt-Free America is also dedicated to giving back to their community by volunteering, sponsoring non-profits and in their seminar messages. The Board members and operations staff have a long-term commitment to helping anyone in debt crisis, and even those not in a debt crisis. Debt-Free America has been in the business since 1997 and is now serving over 16,000 clients nationwide.

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