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Getting married is a major rite of passage for most people. One of the major things that couples have to discuss before and during their marriage is their finances. Here are some financial considerations to consider before marriage.
1. Debt Couples should have an honest discussion about any existing debt. If you attended college, you may have some student loans like most American students do. Be honest about how much you may owe for student loans, car loans, and credit cards. When you unify as a couple, not only will your income be bound together, but your debt can affect you as well.
2. Taxes As a married couple, your tax situation will now change. When you go from filing as a single person to a married person, there are some benefits and exemptions you’ll get. You also must think about your overall estate planning and how that can affect your future taxes. Any estates over $10,860,000 for married couples and $5,430,000 for single individuals, any amount in excess will be subject to estate taxes.
3. Wedding Costs Let’s not forget about the big day itself, the wedding day. While you want your wedding day to be special, remember that you’ll still need money long after the wedding is over. According to IBIS World, the majority of American couples spend as much as 30% of their savings on their wedding day. As you plan your wedding, see if there are certain things that you can save on. Think about the time of year you’ll be getting married. For example, summer is the most expensive time to get married, since that’s when most other couples are also taking that step. Also, consider how many bridesmaids and groomsmen you’ll have. When it comes to your guest list, you don’t have to invite every single person you know. Try to keep the number down within an affordable amount that you can comfortably feed and seat without breaking the bank.
4. Accommodations Maybe you and your spouse are already living together before the wedding or still planning to buy your first home together. According to the National Association of Realtors, almost 50% of recent buyers started the home purchasing process by looking online at properties for sale, while 18% of buyers first contacted a real estate agent. Think about the type of home you want to live in, the location, and chances of future upgrades. After all, there’s a difference between living in a big city like New York versus a more rural area. Plus, the amount of money you’ll spend upfront and later save can change based on whether you decide to rent an apartment or pay for a single-family home. If you don’t want to manage a single-family home, you may prefer to have a condo, especially if you decide to remain child-free.
5. Family Planning Do you and your spouse plan to have children? Children make up a huge chunk of any married couple’s finances. From the time they’re babies until out of the house for college, you must pay for their healthcare, food, clothing, and educational costs. Do you plan on only having one child or a sibling for them or a big family? Sit down and discuss these things, as the amount of children you have, when you have them, and how far apart you have them can play a big role in your overall expenses.
You and your future spouse should enjoy planning your wedding and looking forward to a future together. However, make sure you’re honest about things such as your financial state. Managing and discussing your current expenses, your mentality regarding money, and future planning can play a big role in reducing stress and disappointment in your marriage. Sit down and talk about your finances before you walk down the aisle.
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