SavvySugar

Back to Basics: When Two Become One

SavvySugar — Mon, 23 Mar 2009 11:30:30 -0700

It's something a lot of couples argue about. Often it's more important to one of you than the other. But when one of you slips, both of you suffer. What am I talking about? Money, of course. Because money can be such a sharp point of contention in relationships, it's important that you come up with a financial plan that works for both of you.

Whether or not the last names on a joint account are identical, the money in that account belongs to both of you. But you're each responsible for keeping track of spending. You may have been a master of tracking when you had an account to yourself, but this becomes more difficult when two people have access to one account. But difficult doesn't mean impossible - it just means the two of you really have to communicate.

Coming up with a joint-spending plan is one of the first conversations you should have about your shared money. There are plenty of computer programs, like Mint and Quicken that keep track of all expenditures so you can see exactly where your money is going. And if all of your bills aren't set up for automatic payments each month, make sure you know who is responsible for making timely payments to avoid any late fees.

What are your tips for managing a joint account?

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10 Tips For Balancing Love and Money

SavvySugar — Thu, 19 Mar 2009 07:15:35 -0700

It's a sad, but common tune: Debt threatens to divide or break up an otherwise strong couple that hadn't set up any financial ground rules. Love and money don't always go hand in hand, which means it's crucial to consider the long term repercussions of sharing your life and bank account with another person. There's no magical credit card or anti-debt potion, but here are some tips for keeping the communication lines open, piggy bank full and both of you crazy in love.

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What Happens If My Husband Has Bad Credit, or No Credit at All?

SavvySugar — Thu, 24 Jul 2008 12:30:35 -0700

You know it's important to maintain your own credit identity when you're married, but here's what ehadams is curious about: "What happens to credit when you get married? For example, if he has bad (or no credit) and you have excellent credit, what happens?" The answer to this is less complicated than going through the process of changing your last name! Find out what it is when you read more.

In a nutshell, nothing happens to your credit when you get married. Your credit history is yours to keep, but it's important that you continue using the cards you already have in your name so that your credit history stays active. Your names will never appear on a credit report together - reports are generated for individuals only. However, if you and your husband open any joint accounts together those will appear on both of your credit reports.

While there is no such thing as "our credit score," your husband's credit could affect you (but not your credit score) because both of your scores are considered when you apply for joint accounts or a mortgage loan. You might be faced with higher interest rates on these joint finances than if you applied for them on your own. It would be beneficial for him to work on improving his score (or building some of his own history) before applying for a mortgage together or financing another major purchase.

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Do You Spend Without Checking in With Your Husband?

SavvySugar — Wed, 16 Jul 2008 11:01:50 -0700

If you wanted to buy, say a new pair of Loubs to fulfill your everlasting desire for red-soled shoes, would you have to consult your husband? And if he wanted to go on a Best Buy binge, would he need to check in with you to negotiate a limit?

Discussing spending priorities is a must when you're pooling your money, and some couples make a rule that they cannot spend over a certain amount without first checking with each other. Is there a rule in your household that calls for checking in, or do you have total freedom when making a purchase?

Financial Considerations For Newlyweds

SavvySugar — Tue, 15 Jul 2008 12:27:31 -0700

Ideally you hashed out the His and Hers money issues before you said I do, and beginning your marriage with openness about finances will set the tone for constant and comfortable communication. A good place to start is the three-bucket approach: One shared and two individual accounts helps to maintain a sense of independence while combining funds for shared expenses eases you into the idea of combining funds, though this approach isn't for everyone.

You can always rethink your married money situation later if you feel another approach better suits you, as there's not a single formula that works for all couples. There are additional money issues to consider aside from spending habits and who is responsible for paying off which debts. Find out what they are when you read more.

Decide how much of your salaries will be deposited into savings each month. It's important that you strive to align your goals from the very beginning - are you saving for a down payment on a house, is there a vacation you're both dreaming of and should set up a savings plan for it, or are you more concerned with simply contributing a percentage of your salaries to retirement and saving what you can beyond that? Design a savings plan that follows your needs and wants and revisit these goals occasionally.

Although you may have received everything you asked for on your registry and then some, your newlywed abode may need some additional love. Prioritize any purchases on the horizon so you're on the same page. If both of you were working from separate budgets before you were married, consider tracking your expenses together and coming up with a new budget for two.

Check out all of our wedding season coverage at IDoSugar.

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Would You Get a Joint Checking Account With Your Boyfriend?

SavvySugar — Fri, 20 Jun 2008 15:22:37 -0700

We've shared opinions about combining money (or not) as a married couple, but how many of you have ever explored the idea of opening a joint account with your boyfriend? I can see how it could be convenient if you're living together and splitting bills, but it doesn't seem like it's a common thing to do before a couple is engaged or married. What's your take?

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Tax Tip For Married Couples

SavvySugar — Wed, 12 Mar 2008 10:55:40 -0700

Just because you've promised to be there for your guy through good times and bad, it doesn't mean that filing jointly is the best option for you. You want to pay the least amount of taxes overall, so make sure you run the numbers for filing jointly and separately before opting for one or the other. When would you consider filing separately? To be eligible for certain deductions, couples may benefit from this type of filing if one of you has large medical expenses or business expenses, or if one of you had significant theft losses.

It may be a good idea to ask for professional help the first time you file taxes after marriage to ensure that you're filing in such a way that will get you the lowest overall tax bill. Remember to check out our tax prep giveaway! When you're filling out your tax returns for 2007, keep in mind that your tax status is determined by your marital status on Dec. 31, 2007.

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Should Marriage Mean Combining Finances?

SavvySugar — Mon, 04 Feb 2008 10:01:12 -0800

There are two questions I hear most when people find out I’m engaged: Am I going to take his last name, and how are we going to handle our finances? The second question is an important one for couples to consider when getting married, though don’t you think it’s funny that this is one of the only times other people don’t consider money talk to be taboo?

There’s no right answer in terms of whether or not a couple should combine their finances; the real answer is to do what’s right for you and your unique situation. Some people feel like there’s no need to combine any money and think it’s easier to leave things be, others struggle with letting go of the independence of controlling their individual money, and some have zero gripes about creating one big love and money pot. Then, of course, there’s everyone in between. To see my solution just read more.

I think a good solution is to pool most of your money while maintaining small, separate checking accounts for personal expenses. That way, you can pay all joint expenses out of the joint account and use your personal account for things like girls’ nights and pedicures. The important thing is finding what works for your relationship and being open in discussing finances with your new husband. Also, it's okay if you need to let the whole “husband” thing sink in before diving right into the serious stuff.

Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

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Ask Savvy: My Husband Spends More Money Than He Should

SavvySugar — Thu, 17 Sep 2009 10:30:10 -0700

Dear Savvy,

My husband and I share a bank account. We both work (he makes more money than I do) and it was his idea to combine bank accounts when we got married a year ago. The combined money situation was going smoothly until recently, when he started spending like he did when he was single.

He used to be a pretty bad impulse shopper but improved so much over the course of our six-year relationship - now, it seems like he's falling into old habits, but this time it affects me. I'm not someone you'd call super frugal, but I'm also acutely aware of how I spend our money. How can I talk to him about this without making him feel like I'm trying to parent him?

Savvy says: Your man's defenses might spike when you start a conversation about his spending, so instead of placing blame on him and starting a fight, find a way to pin-point the problem without a lot of finger-pointing. See my advice when you read more.

Begin the conversation by saying that you've noticed the bank account has been lighter than usual, and you think it would be a good idea to look at your transaction history together to see where your money is going. If you use an online money management system (like Mint), this will be an even easier process. If not just take the time to itemize transactions from the last month or two. Categorize your expenses as an online system would, looking for grocery, gas, household bills, and of course, retail purchases.

When it becomes obvious that your man has been spending more than he should, ask him if he thinks it would be a good idea for you both to have your own smaller accounts for discretionary purchases while using the joint account for shared expenses. Say that because there are two of you using one account, it makes it difficult to really pay attention to where your money is going and it would make it easier for you to track your own expenses. You could automatically transfer a certain amount of money into your individual accounts on paydays.

Because you and your husband have different spending profiles, I really think the best idea is for you to get separate accounts to use as you wish. If your husband blows through his personal account and starts using the joint account for his shopping habit, then you can have to have another, more serious, conversation about your shared financial goals.

Have a question for me? Ask away by posting your questions in my Ask Savvy group.

Back to Basics: Balancing Love and Money

SavvySugar — Tue, 29 Sep 2009 09:00:54 -0700

Love and marriage may go together, but love and money don't always. Thirty percent of Americans, 23 percent of Canadians, 24 percent of the French, and 12 percent of Germans say the recession has added stress to or ruined their relationship or marriage. These are startling stats, especially when you consider only 11 percent of SavvySugar readers say they have never fought with their spouse over money. Check out some tips for balancing career, finances, and love, and share your thoughts on the topic!

Become a More Financially Compatible Couple	10 Tips For Balancing Love and Money	Is It Harder to Make Ends Meet When You're Single?
The Marriage Penalty, Explained	Couples' Financial Conversation Starters	How to Manage Money as a Couple

For additional polls on all things love and money, read more.

Do You Spend Without Checking in With Your Husband?	Have You Dated a Guy Because of His Money?	Is Bad Credit a Dealbreaker in Serious Relationships?
Could You Work With Your Husband?	Would You Get a Joint Checking Account With Your Boyfriend?	How Do You Feel About Prenups?