Ten financial tips

This time of year, most engaged couples are thinking about seating
arrangements and tuxedo fittings, wedding showers and honeymoon plans.
Financial issues are probably the last thing on their minds. But money is the one
thing that people say they argue about most before and after the wedding. Before
anyone says "I do," the American Bankers Association Education Foundation
recommends couples discuss the following:

1. Discuss finances beforehand. The first date is too soon and the honeymoon is
too late. A good time to discuss finances is when both of you have realized that
you're serious about a long-term relationship.

2. What is your credit history? How much debt are you bringing into the
relationship? Do you pay your credit card bills on time? Ask questions so there
are no surprises when the two of you make big purchases like an automobile or
a home.

3. What is your financial personality? Are you a saver or a spender? Do you live
from paycheck to paycheck? Are you a penny pincher who cuts coupons? Have
an honest discussion with each other about your habits because it will affect your
relationship in the long run.

4. Create a savings plan. Discuss short- and long-term saving options,
investments, retirement, IRAs and 401(k) plans.

5. Communicate and negotiate everyday money matters. Should you open a joint
checking account? Who will buy groceries? Who will keep track of monthly
statements and bills?

6. Focus on goals, dreams and objectives. Once you've made the decision to
build a financial future together, sit down and map it out. Are you saving for a
home? What savings plan will you have for your children?

7. Update insurance and estate plans. Make sure you're sufficiently insured and
the beneficiary for each policy is updated. You may also need to update other
estate documents.

8. Examine your tax situation. Tax laws penalize dual-income families; determine
what will benefit you and your partner in advance.

9. Consider a prenuptial agreement. A prenuptial agreement isn't just for the rich;
it can cover a variety of things like property, a home, inheritance and other
investments.

10. Talk with a certified financial advisor. Financial planners can help you
establish a plan that will help you reach your objectives.

Couples who talk about their finances before they get caught up in the wedding
whirlwind will be better prepared to begin their future together. For more
information, visit www.aba.com.