After walking down the aisle – or even before saying their vows – newlyweds need to take control of their money or risk a rocky financial future, advises the Better Business Bureau.
Why? Research by Utah State University shows that married couples who frequently fight over money are more likely to split up.
In order to start your new life together on the right financial foot, the BBB offers the following advice:
- Let Financial Skeletons out of the Closet. Sit down early on and discuss what outstanding obligations exist on both sides including car loans, school loans and credit card debt. Review your credit reports to get a better idea of what you are both bringing to the marriage.
- Build a Budget. After you’ve gotten a grasp on your debt, it’s time to build a monthly budget. Look at monthly bills to create a realistic picture of how you spend. Discuss long-term goals — such as buying a house or car and having kids — and figure out how much money to set aside every month to reach those goals.
- Designate a Driver but Travel Together. Designate one person to pay monthly bills, but hold regular discussions to map your path and nip bad spending habits in the bud.
- Plan for Emergencies. Many young couples fail to save money to get through hard times such as health problems and unexpected unemployment. Experts recommend three to six months of salary in a rainy-day fund — ideally an interest-bearing account that can be easily accessed.
- Save for the Future. Retirement may seem like a long way off to newlyweds, but setting aside money now means reaping big rewards later on. Take advantage of both employers’ retirement matching programs — if available — or set up individual retirement accounts.
- Make a Vow to Be Savvy Consumers. Many families have had their life savings decimated after becoming a victim to fraud or identity theft. Check out your BBB’s Web site to find trustworthy businesses, get educated on the red flags of fraud and learn how to protect your identity.
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About the BBB
The Better Business Bureau, founded in 1912, is a champion for ethics and trust in the marketplace. Only businesses that meet the high BBB standards are invited to become BBB Accredited Businesses. Today, 128 BBBs across the United States and Canada rate more than 3 million local and national businesses and charities with scores ranging from A to F. Only a BBB Accredited Business may elect to participate in BBBOnLine, one of the most trusted and recognized Internet seal programs in the world.
The BBB serving northern Colorado and Wyoming topped 1.1 million instances of service to consumers and businesses in 2009. These services include reliability reports on local companies and charities, access to companies that can be trusted by industry, help with dispute resolution, and trustworthy information on consumer and business topics.
Luanne Kadlub, BBB Media Specialist, 970-686-9307, lkadlub@wynco.bbb.org