Before the Wedding Day

Have the money talk

Sit down and set financial goals–do you want to save for a new house? Have five kids? Decide if you're going to pool your assets or maintain separate share draft/checking or savings accounts. The success or failure of a marriage can depend on how well a couple handles money. A couple's first experience handling money may be the decision to open a joint share draft/checking account, maintain separate accounts, – or a combination of the two – a joint and individual accounts.

Don't make the decision lightly and, according to financial planners, don't make it quickly, either. It's better to ìeaseî into financial blending. A lot of people get married and the next day put everything into a joint account. Slow down, experts advise, and maintain separate accounts for a while or try a joint account while keeping separate accounts as well.

Joint accounts provide a sense of teamwork, but they can allow one person to be in charge while the other remains "in the dark." This can create tension and lack of communication in a marriage.

Separate accounts help maintain each partner's identity and provide the financial knowledge necessary in case of a divorce or the death of a spouse. As your needs and goals change, or if there's constant tension over money, consider combining or separating your accounts. Our Member Service Representatives would be happy to provide guidance to you in this process.

Corral Credit

During the money talk, exchange credit reports and take a financial inventory. Who owes what? How many credit cards are there between you? Are there problems or red flags on either credit report? If your goals include buying a home, car, or having children, focus on cleaning up any credit problem and curtailing future debt. "You don't want to have a situation whereby you've both been renting and you want to buy a house or car and then you get surprised," says Janet Fox, president of ACH Investment Group in Raleigh, N.C. It may be advantageous for the partner with better credit to list his or her name first on the application to help secure the loan or a better rate, adds Fox. To maintain your individual credit history, keep at least one credit card or loan in your own name.

© 2008 Progressions Credit Union

Phone 535.0191 • Toll-free 1.800.828.8691

Terms of Use • Privacy Policy • Volunteer Login