Personal Finance
Newly Engaged? Here’s Your Financial Checklist
Newly engaged? Congratulations!
From wedding planning to registry shopping, engagement season involves a lot of preparation…including financial considerations. Whether you’re budgeting for venues or preparing to open a joint account, it’s important to lay the foundation for your future together. The experts at Origin are here with a list of important items to check off the list before you say “I do.”
Your engagement financial checklist
Financial planning not only boosts financial security, it can also prevent future conflicts and help couples align their goals, both of which are essential for a long and happy partnership.
Wondering where to start? Get ahead with this easy financial checklist for newlyweds and soon-to-be-weds.
- Start budgeting for the wedding. Step one? Budget for the wedding. This task can feel daunting, but the best place to start is by discussing how you want your wedding to look and feel. Next, work together to determine how much you can afford to spend without jeopardizing your other financial goals. Figure out where you can trim costs while still achieving the desired experience. At this stage, it’s a good idea to open a wedding-specific savings account with a good interest rate and agree on a monthly savings goal.
- Create an emergency fund. Whether it’s for last-minute wedding expenses or future necessities, set aside an emergency fund to cover unexpected costs. If you have a financial emergency, this safety net can keep you from falling into debt. Setting aside funds helps you build a strong financial foundation for your marriage while alleviating stress and worry should something pop up down the road.
- Deal with debt. Before you tie the knot, make sure to discuss debt. Once you’re married, your partner’s debt is your debt in the eyes of creditors. From student or personal loans to credit card debt, be honest about what you owe so you can make a plan to tackle it together. By creating a plan to manage your debt now, you keep it from transforming into a major stress later in your marriage. Don’t know where to start? Get a crash course with our Beginner's Guide to Debt.
- Set shared financial goals. After you’ve discussed debt, it’s time to open up about your current financial situation. From income and savings to credit scores, lead with transparency when it comes to finances. This helps you work together as a team to manage your money and set shared goals. Whether you decide to save for a house, invest in a mutual fund, plan for retirement, budget for a big trip, or all of the above, creating a shared vision for your future is crucial.
- Discuss major milestones. What do you want from your life together? Whether you’re planning to buy a home, have a family, become an entrepreneur, or retire early, your life goals can have major implications for your finances. Make sure you discuss these things with your partner ahead of time and create a plan that works for the two of you.
- Decide whether to merge finances. While some couples combine their finances, not everyone chooses to merge. Ultimately, it depends on your unique circumstances. It’s convenient to use a shared checking account for bill payments and tracking general expenses, with both spouses making deposits to cover rent, utilities, groceries, and childcare. Merging finances can encourage transparency and communication about spending habits and financial goals. However, keeping separate accounts may work better if you and your spouse earn drastically different incomes or prefer to maintain autonomy over a portion of your spending. Additionally, keeping accounts separate may help if one spouse is in debt or you are a blended family. Need help deciding which is best for you? Discuss your options with the experts at Origin Bank!
- Consider signing a prenup. Prenuptial agreements aren’t just for celebrities! In reality, more and more people are signing prenups. Prenups detail what will happen to property, debt, income, and assets in the case of a separation or divorce. This gives you a chance to determine what asset splitting means to you and your future spouse. Instead of seeing it as an exit strategy, think of it as insurance or a financial safety net.
Ready to start preparing for your happily-ever-after? Set up a dedicated savings account like Origin's Simple Savings account for your engagement season. Whether you use it to pool wedding budget resources or kickstart your emergency fund, it’s never too early to get started. For more financial tips from Origin’s team of trusted advisors, please visit our online blogs for more valuable information.