The keys to having successful financial conversations when you’re engaged

While money is a leading cause of marital conflict, a recent Ameriprise study found that nearly seven in ten couples say they communicate well financially. Before wedding planning gets under way, make discussions about your finances a priority. Taking the time today to talk about money matters can create a strong foundation for your collective future. Use the following six principles to guide your conversations about money:

1. Open minded. Take turns sharing your views on money management as a married couple. Listen carefully to what your future spouse says that is important to him or her. Acknowledge your differences and build on your strengths. If your expectations don’t match, try to find a compromise. Some couples avoid conversations about money to avoid feelings of hurt, fear, anger, or remorse. Creating a habit of regular communication can help you avoid heated arguments and can help ensure you’re on the same page financially before you walk down the aisle.

two. Honesty. Financial secrets can destroy trust. Share the details of your financial history and current situation if you haven’t already. Your future spouse deserves to know if he’s paying off college debt or if he’s made financial mistakes in the past (and how he’s corrected them). Spread the good news, too. Disclose details about savings you’ve saved or a family trust that helps supplement your income so you both know where you stand.

3. With future vision. Once you’ve shared your current situation and history, discuss your goals for the future. Be open about what your dreams are, but be ready to compromise. While you don’t have to agree on everything, having shared goals (buying a house, saving for college if you decide to have kids, retiring, etc.) allows you to combine forces on saving and gives you a roadmap for spending .

Four. Cooperation. To avoid misunderstandings as newlyweds, discuss and assign responsibility for financial roles. Are any of you better at monitoring accounts online and paying bills? Are they enrolled in a retirement account and taking full advantage of employer contributions? Who will be the primary contact for your financial advisor, tax professional, or estate planner? Two is better than one when you can divide and conquer financial tasks, but make sure you’re both on top of key decisions and money matters.

5. Diligence. Once you’re married, make it a priority to update your financial documents. It takes discipline, but taking care of these chores right away protects you in case something unexpected happens. Several steps to consider:

• Update financial accounts, insurance policies, and credit cards with any name changes and, if necessary, add your spouse as the owner and beneficiary of those accounts.

• Consider combining your bank accounts if it makes sense for your situation.

• Update or draft your will and estate plan to reflect your collective wishes.

• Modify your tax withholdings to ensure the correct amount is withheld from your paycheck now that you are married. Consult your tax professional before making any changes.

• Choose your health insurance. If both employers offer health insurance, carefully evaluate your coverage options and premiums to find the best fit.

Like most things worth accomplishing, preparing for a lifetime of financial compatibility takes work. If you and your future spouse can commit to the same monetary values, it can help you create a solid financial foundation.

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