What’s a bigger commitment than saying “I do” to that one special person in your life? Merging finances with them! While talking about money can be a major relationship hurdle for many couples, there are great benefits to combining your personal finances after marriage. Don’t let finances become a taboo topic in your relationship; our team at Legacy Bank is providing tips for successfully merging your post-marriage finances!

Take Inventory of Your Current Situation

Like with any aspect of a relationship, the foundation of a successful financial partnership hinges on open communication. Complete transparency can prevent future misunderstandings and help both parties feel more confident about joint financial decisions. Before you combine any bank accounts or start paying bills together, sit down and have a frank conversation about your financial situation, making sure to discuss:

• Your current income, debts, and assets.
• Each person’s spending habits and savings goals.
• Your long-term and short-term financial priorities, such as buying a home, traveling, or starting a family.

Explore Joint and Separate Account Options

After you’ve had the so-called “money talk,” it’s time to do the actionable work of combining your finances. And, when it comes to merging finances, there’s no one-size-fits-all solution. While some couples may choose to keep all of their funds in joint accounts, other couples may find that keeping a mix of individual and joint accounts works best for them. Here’s how the different account options can be useful for your household!

Joint Accounts: Some couples prefer to combine all their finances into joint accounts. This can simplify budgeting, bill paying, and saving for shared goals, creating a sense of partnership. However, it also requires a high level of trust and communication.

Separate Accounts: For those who prefer to maintain financial independence, keeping separate accounts while contributing to shared expenses can work well. This approach allows each person to retain control over their money while working together on household finances.

Hybrid Approach: A popular middle ground is to have a joint account for shared expenses (like rent, groceries, and utilities) while maintaining separate accounts for personal spending. This method offers flexibility while still promoting financial unity.

At Legacy Bank, we offer a variety of account options to suit your individual needs. Explore our personal checking and savings account options online!

Outline Your Financial Plan

Merging finances isn’t a one-time task. Once you’ve discussed your preferred options for bank accounts and taken inventory of your financial situation, it’s time to outline your future financial plan. This plan should include short-term and long-term goals as a couple and how you plan to achieve them. Here are some key areas to consider when outlining your financial plan:

Budgeting: Start by setting a budget that reflects your combined income and expenses. Be sure to account for both fixed costs (such as mortgage or rent, utilities, and insurance) and discretionary spending (like dining out, entertainment, and hobbies). Setting a realistic budget can help track spending and ensure you and your partner are consistently on the same page financially.

Debt Repayment: If either partner has existing debts, create a plan to tackle them together. Focus on paying down high-interest debts first to avoid unnecessary financial strain.
Saving and Investing: Identify your savings goals, whether building an emergency fund, saving for a down payment on a house, or planning for retirement. Automating your monthly contributions to savings or investment accounts can remove some of the stress regarding your finances—allowing you to focus on other aspects of your new marriage!