August 4, 2022
Considering how to manage expenses with a partner is an important decision to make as your relationship moves forward. Having discussions surrounding the following topics will help you plan for financial changes after tying the knot!
While combining bank accounts is a traditional aspect of marriage, not all couples decide this is the best option for them. Sharing bank accounts and credit cards may simplify tracking your finances as a couple, as well as offering an increased sense of unity to your relationship. However, it does have some downsides to consider. For one, if you and your partner have different spending habits, a joint bank account may create resentment or tension around finances. It also decreases your financial independence and autonomy. One option is to hold both joint and separate accounts; organizing the joint account to be used for mutual expenses and the separate accounts for discretionary spending.
If you decide to not combine all finances, splitting financial responsibilities is typically the alternative. This can be done by totaling all fixed monthly expenses together such as rent or mortgage payments, emergency savings account contributions, groceries, and other bills. Determining who will pay what bills is a personal decision, both monthly incomes should be taken into consideration when delegating expenses.
Discussing financial goals with your partner is a great starting point for planning expenses. Some goals may include buying a home, a savings goal, or recreational expenses such as vacations or a boat! After determining your goals, prioritize which are most important to you and your future. If you find yourself struggling with this step, a financial planner can help.
Citizens First Bank is here to help navigate you through these important life decisions. No matter which path you choose, we offer flexible options to fit anyone and everyone’s needs. Feel free to stop in, give us a call, or visit our website to schedule a meeting with one of our financial planners today.