1. Speak openly and honestly about finances

Once engaged, it is important to have open conversations about personal finances, including sensitive subjects like annual salaries and debts. Discuss similarities and differences regarding money attitudes and habits. Talk through financial expectations and decide if it is more appropriate to combine money or maintain separate accounts as a married couple. Thoughtfully consider various situations and viewpoints, weigh pros and cons, and make the best, most comfortable decisions for both parties.

 While conversations may initially feel uncomfortable, speak transparently and truthfully. Remember - marriage is an emotional and legal commitment. A household’s combined financial standing will influence future decisions and impact opportunities. Do not hold back any information or shy away from difficult topics.

Additionally, this is the appropriate time to consider a prenuptial agreement. While it may not be regarded as the most romantic topic, there are a variety of circumstances in which a prenup may be fitting, so explore the option and determine its suitability.

2. Open a joint bank account

There are many celebrations and events leading up to the wedding day, during which an engaged couple often receives gifts from family and friends. Gifts are typically intended for both individuals – including money. Therefore, regardless of how bank accounts will be maintained following the wedding, open a joint bank account. A joint bank account acts as the most equitably way to deposit and manage joint money because each person maintains ownership and access to the funds. This type of account also provides absolute transparency and simplifies accounting.

3. Create common financial goals, while still making progress with personal goals

An engagement is the start of a life-long commitment, filled with promise and excitement. Discuss ambitions and goals for the future regarding careers, family, and (of course) finances. Define and plan for combined short-term goals, such as costs for wedding celebrations and honeymoon. Share your dreams and talk about mid-term and long-term goals, like buying a home, growing your family, and retirement.

 While looking toward the future, simultaneously maintain focus on previously defined personal goals. After marriage, individual goals may adjust as they transform into joint goals but continue current tracks to avoid delays and unforeseen setbacks.  

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