Budgeting Tools for Newlyweds

Money management for newlyweds involves consensus on financial planning rules.

Finance arrangements for newlyweds vary with the couple, but basic financial security rests with some key components of budgeting and planning for all couples. Financial problems can cause a lot of trouble in a marriage, hence the importance of getting your financial house in order. Closely monitor major purchases by both you and your spouse.

Open Shared Accounts

Sharing checking accounts and charge cards mean transparency in all financial transactions. Both partners need to understand the financial details involved in the marriage, including the established monthly expenses and discretionary spending choices. Should an accident incapacitate one partner, the other person has the information necessary to continue paying bills and managing family finances. Secret personal checking accounts or charge accounts undermine sound financial planning and allow one partner to avoid the restraints set for the other partner.

Write Formal Budget

Sound budget planning for newlyweds includes developing a formal budget and putting the information in written form. A simple paper budgeting book or a computer program offer a method for recording income, expenses and savings. Setting both long- and short-term budget goals presents the couple an overview of the income projected for each month. Totaling salaries, bonuses and any outside income also allows a clear view of regular fixed income for the year compared with occasional or sporadic funds. Calculating regular expenses for the month and year allows a comparison with incoming funds and expenses.

Hold Monthly Budget Meetings

Even with a set monthly budget, spending fluctuates from month to month. Regular monthly budget meetings held at the beginning and end of the month help set the budget goal for the month and also check progress by tallying accounts after bills and expenses at month's end. Rather than a painful experience, budget meetings incorporating a meal or a home activity, such as a film date, make the meeting a pleasant experience while taking care of important personal financial planning.

Establish Emergency Fund

Newlyweds establishing an emergency fund as part of a budget during the first year of marriage have greater chance for economic success than couples living month-to-month without any emergency cash. Illnesses, employment layoffs, work-schedule reductions and payments for personal necessities, including emergency home and auto repairs, create panic conditions for couples without an emergency cash fund. Keep a minimum of three months of daily expenses in an emergency fund. Conservative budget planners recommend a year of emergency reserves.

References

• "Kiplinger"; Six Money Mistakes of Newlyweds; Erin Burt; April 2009
• "Forbes"; Eight Financial Tips for Newlyweds; Lea Goldman; June 2004
• University of Arkansas Cooperative Extension Service; Financial Smart Start for Newlyweds - Introduction; James P. Marshall, et al.; 2006
• University of Arkansas Cooperative Extension Service; Understanding and Sharing Your Financial History; James P. Marshall, et al.; 2006
• University of Arkansas Cooperative Extension Service; Creating and Sticking to a Budget; James P. Marshall, et al.; 2006
• University of Arkansas Cooperative Extension Service; Credit and Overspending; James P. Marshall, et al.; 2006