Financial To-Dos for Newlyweds
Podcast Transcription
Money Talk is a podcast brought to you by PFCU where we will share tips and tricks and talk to the experts on all things finance related. Join us as we cover everything from credit and loans to cyber security and careers. No matter where you are in life, PFCU is here for you.
Hi everyone, welcome to another episode of PFCU’s Money Talk Podcast. It’s wedding season and if you’re a newlywed or will soon be a newlywed, there’s a lot of things to consider financially. Things like managing your finances and creating a budget as a couple and even possibly changing your name.
Now before you even get to the big day, it’s important to sit down with your partner and talk about finances. Some of these to-dos have a time limit so you’re going to want to lay out the timelines to know when they must be completed.
Let’s start with insurance policies. They do often have limits as to when you can make changes—typically 30 days, but sometimes as little as two weeks. Make sure you go over your options beforehand, so you know what changes to make. Some great questions to ask include:
- Is it less expensive for one partner to move onto the other’s health insurance?
- Are there any children that now need health coverage?
- Which insurance plan has better coverage, or which saves money for other goals?
- And does one insurance plan have better parental leave coverage, in the event you wish to add children to your family?
While you will probably be combining things like homeowner’s or renter’s insurance naturally, another issue to consider is auto insurance. Will it save you money to combine policies? And remember that many places offer multi-car discounts.
And lastly for insurance, if you and your spouse do not currently have life insurance policies, now is a great time to get them—especially if you have children! If you do have life insurance, make sure to update your beneficiaries.
Next you want to think about making a will. No one wants to think about it, but in case of death of one or both partners, it is important to have a will set up. And again, having children makes this even more important. Putting a will in place will make things much easier if the worst were to happen. Take a listen to the previous podcast episode about estate planning where I cover some basic questions about the process. You can also visit PFCU’s website to check out our new estate planning offerings. It’s PFCU4me.com.
You also want to calculate your net worth as a couple. Now is the time to lay your entire financial story out on the table, if you haven’t already. The clearer you are about where you stand financially, the better off you will be long-term. List outstanding debts, any payments owed to previous spouses (such as child support), all income, investments, and all other accounts including retirement accounts. You can use this as a springboard to put together your financial goals and your day-to-day budget.
Next is to outline your financial goals. Money means different things to different people. It could mean security, power, or perhaps the ability to travel, start a company, or buy fun things. Talking about and agreeing on your financial goals as a couple is extremely beneficial, as it can help reduce arguing and can get you and your partner on the same page.
A crucial piece to finances as a couple is to decide how to manage your accounts. It’s no longer assumed that all couples will have joint accounts. However, there are some benefits to having at least one joint account. Managing household expenses can be much easier with an account that both partners can access and contribute to. And don’t forget about credit. If one spouse is repairing their credit score, decide how you’re going to manage that as a couple.
Create a budget together. Even if you do have separate accounts, a joint household budget is essential to reaching your financial goals and maintaining the peace. Talk with your partner and be sure to prioritize your joint financial goals in setting up your annual and monthly budgets.
And lastly if one or both partners choose to change their name, it will be important to take steps to ensure your creditors, financial institutions, and other entities are aware of the name change. This process can definitely take some time, so it’s best not to wait. It may be helpful to make a list of all the places and documents that may require official name change information. Here’s a list to get you started:
- Social Security card
- Driver's license
- Passport
- Vehicle registration, lease agreements, and other documents
- Schools
- Workplaces
- Creditors (including any outstanding student loans)
- Financial institutions
- And voter registration
It probably feels overwhelming when you’re going to change your name but again, making a list is super helpful. I hope this gives you some things to think about and get started with before and after your big day. Thanks for listening!
Money Talk is a podcast brought to you by PFCU. PFCU offers many products and services to fit your needs. From our various loan and account options to our team of financial coaches to help you reach your goals. Make sure to take advantage of the many conveniences PFCU offers, such as the mobile app, mobile wallets, bill pay, and more. Visit our website at pfcu4me.com to learn more. PFCU is an equal housing lender and is federally insured by the NCUA.