4 Financial tips for newlyweds
2022 looks like it’s going to be the year of nuptials. According to Wedding Report, 2.5 million weddings are expected to happen this year, with an average cost of $24k. That’s a lot of cake! But tying the knot is just the first step. Your perfect union should have both partners being honest about your goals… if you even have goals.
If you’re a newlywed couple, or planning on getting married soon, this post is for you. We’re going to cover smart financial tips for newlyweds and how to prepare for long-term goals. If you haven’t had these conversations with your spouse before, that’s okay. We’ll also touch on how to bring this up in a way that’s comfortable and productive.
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- Should newlyweds discuss financial goals?
- How do I start talking to my spouse about finances?
- Financial areas for newlyweds to focus on
Should newlyweds discuss financial goals?
Discussing finances can be awkward, even for newlywed couples. Recent studies show that in 34% of cohabiting couples, one or both partners couldn’t identify the other’s salary. There are a number of reasons for this, depending on the situation. However, we believe that honesty is the best policy. You can’t make an informed decision if you don’t have all the info.
Now we’ve written about how to spot financial red flags before. But being legally tied to someone without knowing their financial situation can be a risky gamble. So it’s important to have talks with your beau about their financial situation and goals.
How do I start talking to my spouse about finances?
If you’re newlyweds, but you haven’t had financial talks yet, that’s okay. You can still talk about them to save yourself a major headache later. These should be regular conversations, not just one talk. And you can start small. A question like, “what kind of career goals do you have?” is a great way to center on goals.
Financial areas newlyweds should focus on
Now that we know how to start these conversations, let’s look at four main financial areas.
As noted above, it’s expected that 2022 will have to have 2.5 million weddings, with the average cost being $24.3k. That’s a lot of money for just the ceremony. And in the US, 28% of couples reported going into debt just to pay for their wedding. So an immediate financial concern for many newlyweds is taking care of that debt.
But that’s not all. Student loan debt is still high, and medical debts are also an everyday concern. Newlyweds should discuss what debt they have and how they can tackle it. If there’s trouble paying off debts, see if budgeting helps.
For the millennial newlywed couples out there, we get it. You've gotten a bad rap when it comes to budgeting (remember avocado toast?). Even with all *gestures wildly at the world* stuff going on, having a budget is still a smart play. There are a lot of streaming services out there, but do you use all of them? You can limit the amount of takeout that’s delivered to your door. Discuss what you and your spouse can cut back on to see if it helps. A budget won’t fix all your problems. However, it can help you have a sense of control over your finances. And budgeting correctly can give you a clearer pathway to your future.
3. Long-term financial goals
Setting realistic long-term financial wants is a sign of a strong marriage. These goals could include things like housing, retirement, and childcare. As a newlywed, you may not have the financial resources to focus on these things now. However, it’s never too early to start planning.
For housing, do you want to live in a city, the suburbs, or rural areas? Housing prices are increasing, with real estate costs rising 15% in 2021. Renting can allow for more flexibility but if you want to start a family, rental sizes may be limited. Then there are daycare costs and future education to think about. Over half of families surveyed (57%) reported spending over $10,000 in childcare costs in 2020. Not to mention the average tuition of a 4-year college sits at approx. $35,000.
And let’s not forget about retirement and homeownership. We do have blog posts talking about these, so head on over to learn about those in more detail. But setting strong goals can give you a handy map to follow through unknowns.
4. Life insurance
Unfortunately, the last couple of years have shown us that things can change quickly. So, as a newlywed, you should also think about life insurance as a part of your long-term financial objectives. A flexible life insurance policy can protect your family and grow with your goals. It’s also a great way to start having talks about finances. Chat with your spouse about being their beneficiary. How much coverage would you all need to maintain your current standard of living? What should be done in an emergency? Wyshbox offers flexible term life insurance that works with you and your loved ones. Click here to see how easy it is to sign up.
A marriage is a partnership and both partners should be honest. Not just about what they have but what they want to see from the union. So start having these conversations. And we know talking about life insurance for newlyweds can be awkward but it’s necessary. Before you realize it, your goals will be met. But only if you communicate your needs (because no one won anything through ignorance alone).