5 Money Mistakes Newlyweds Should Avoid

Summer wedding season is in full swing and newlyweds will soon be managing their finances as a couple. As an element “Developing a financial plan can often take a backseat to the excitement of a wedding and honeymoon,” of the Fox Chase Bank Save! America educational program to help people achieve financial freedom, the bank encourages spouses to prioritize establishing a couple’s money management plan.
“Developing a financial plan can often take a backseat to the excitement of a wedding and honeymoon,” states Tom Petro, President & CEO of Fox Chase Bank. “But it’s important to remember that a marriage is about traveling life’s journey together. And, planning how to manage money as a couple will make the journey more comfortable.”
To help couples begin their marriage with a strong financial plan, Fox Chase Bank advises newlyweds to avoid these 5 post-wedding financial mistakes:
1. Not talking about money. Discussing your finances can be a bit uncomfortable for many couples, but those who tackle it head on will be better for it. Understand your partner’s financial goals, spending habits and saving behaviors. Stay positive, be honest and don’t get emotional. This conversation will help you develop an approach to money management that works for both of you.
2. Not setting a budget. Some couples don’t want to set a budget because they think that they’ll have to give up a lot. But, that’s not the case. Having a budget to plan your expenses will make you feel good because being in control of your finances feels good. You’ll need a budget template to create your budget. Here’s a budget template that Tom and his co-author, Kris Messner, recommend in their book, Save! America.
3. Not having a plan for your accounts. There is no “right” way to manage your accounts. Couples can choose to have exclusively joint accounts, a joint account as well as separate accounts for saving or personal spending, or keep things entirely divided. Discuss your preferences together and decide what makes you both the most comfortable.
4. Failing to set up cash reserve funds. Life is full of surprises and some can be expensive. Every couple’s situation is different. But, everyone feels rewarded and accomplished when getting control of finances. You might want to create cash reserve accounts for car maintenance; home repairs or appliances. You decide how many cash reserve accounts to set up and name them according to their objective. Every paycheck, put money in each of the accounts you establish. The key is to be consistent.
5. Not establishing a minimum cost for discussing big expenses. While not all purchases demand a conversation, more expensive ones that impact the family budget should. The most important part of the conversation should be discussing “wants” versus “needs.” Do you really need something? If not, it may be something you “want.” In that case, set up a cash reserve account and save for it. To avoid building up debt, resist the temptation to buy it using credit.
“Establishing a budget early in a marriage is essential to having healthy money behaviors,” states Tom. “When couples establish a budget and stick to it, they’re less likely to have unpleasant conversations about money.”
Additional money tips for married couples are available at the Fox Chase Bank blog “3 Tips To Healthy Finances In Your Relationship”.
About Fox Chase Bank
Fox Chase Bank is a community-oriented bank consistently delivering on the promise of doing what’s right for people. The Bank, established in 1867, is headquartered in Hatboro, Pennsylvania. It provides a comprehensive array of financial products and services through nine branch offices in Bucks, Montgomery, Chester and Philadelphia Counties in Pennsylvania and Atlantic and Cape May Counties in New Jersey. Fox Chase Bank distributes free copies of Save! America at their branch locations.