Financial Questions to Discuss With Your Partner
Ready to take the “Next Step?” The Top 5 Financial Questions You Need to Discuss Now
Starting a new beginning with that special someone can be one of the most important decisions of your life. Before planning your wedding, enjoying your honeymoon, or furnishing your house, go over these 5 important questions with your partner.
How much money do we have and how much do we owe?
Before getting married it’s important to know what your assets and liabilities are; or in other words, how much money you have versus how much you owe. That includes credit card debt or unpaid student loans. The most important aspect is to communicate and be completely open and honest with your partner about debt.
Should we have joint or separate checking accounts?
There’s no right or wrong answer to this question. If you’re going to put your combined household income into a single checking account, then organization and discipline will help you manage your finances. If you choose separate checking accounts, a detailed budget that lays out your monthly expenses, but also your savings goals, is recommended.
What’s our credit situation?
If your partner has bad credit, it may affect you when making big purchases together, like buying a house or a new car. However,if either of you has good credit, then opening joint accounts may help build a strong credit history for both over time. If neither of you has good credit, then your first step is to work together to build solid credit history before applying for loans.
Should we get a prenup?
If you haven’t discussed it already, now would be a good time to discuss a “prenup.” A prenuptial agreement is a contract between two people that details how assets will be distributed in the event of a divorce. Keep in mind that prenups are not just for the wealthy. If both of you have assets such as a home, stocks or retirement funds, own all or part of a business or have children, then you may want to consider a one.
Do we want kids?
The truth is, kids can be expensive and having kids requires solid financial planning. Whether you’re a dual income family or if one of you is planning to stay at home with the children, you’ll eventually have to consider covering everything from insurance, childcare and public versus private school tuition down the road. In the end, it all begins with a simple conversation with your partner.