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.