Using a CD to Teach Your Children about Finances
Money management is a complicated subject even adults can experience trouble mastering. So, it’s understandable if the prospect of teaching your kids...
2 min read
Getting married is a significant milestone in life, and it comes with many changes, including financial ones. Here is a financial checklist to help you prepare for your married life together:
Discuss your finances: Before you get married, sit down and have an open and honest conversation about your finances. Discuss your debts, income, savings, and financial goals. Check your credit reports for your current score, and to ensure there are no errors or discrepancies. This will help you both understand each other's financial situation and set expectations for the future.
Review your financial goals and values: You and your partner should have an open and honest conversation about your financial goals and values. This will help you understand each other's expectations and make a plan to achieve your joint financial goals. Determine who will be responsible for paying bills, managing investments, and handling day-to-day finances. Decide on your joint financial goals, such as saving for a down payment on a house, or paying off debt.
Create a budget: Once you have discussed your financial goals, create a budget that will help you achieve them. Make a list of all your income sources and expenses. Develop a budget together that includes all of your shared expenses, including rent or mortgage payments, utilities, food, and entertainment. Agree on how much money you want to save each month, and where it will be deposited.
Merge your finances: Decide whether you want to merge your finances completely, keep them separate, or a combination of the two approaches. If you decide to merge your finances, open a joint bank account and consider getting a joint credit card.
Determine your tax filing status: Determine whether you want to file your taxes jointly or separately. Discuss any tax deductions or credits you may be eligible for. This will depend on your individual financial situation and could impact your tax liability. You may wish to consult a financial advisor.
Update insurance and legal documents: Make sure you both have adequate insurance coverage, such as health, life, and disability insurance. Review your policies and update them as needed. Check your retirement accounts, life insurance policies, and other assets to ensure your beneficiaries are up to date. As a married person, your spouse should be listed as your primary beneficiary. Update your wills, powers of attorney, and other legal documents to reflect your new status as a married couple.
Plan for emergencies: Create an emergency fund that totals three to six months of living expenses. This will help you both feel more secure in the event of unexpected expenses or job loss.
Consider estate planning: Create or update your estate plan, including a will, power of attorney, and healthcare directive. This will ensure your assets are distributed according to your wishes and your healthcare decisions are respected.
By following this financial checklist, you and your partner can start your marriage on solid financial footing and work together towards a secure financial future.
The content on this site is intended for informational purposes only and should not be considered accounting, legal, tax, or financial advice. First Federal Bank recommends that customers conduct their own research and consult with professional legal and financial advisors before making any financial decisions. Links to third-party websites may be provided for your convenience; however, First Federal Bank does not guarantee the reliability, accuracy, or safety of the information, products, or services offered on these external sites. We are not liable for any damages resulting from the use of these links, and we do not investigate, verify, or endorse the content or opinions expressed on any third-party sites. First Federal Bank | Equal Housing Lender | NMLS # 408902
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