Most couples think they communicate well, but research indicates otherwise when it comes to finances. Communication on financial issues between couples is especially poor, as we have discovered in previous essays.
Couples were asked what advice they would give to newlyweds and young couples about finances. Newlyweds usually do not put frank talk about finances at the top of their “to-do” list. That may be a big mistake.
The most common suggestions for young couples starting out in life together were:
- Save as early as possible for retirement (57%).
- Make all financial decisions together (41%).
- Make a budget and stick to it (39%).
- Make sure you have an emergency fund (38%).
- Don’t hide expenditures (28%).
- Disclose income, debts and assets early (24%).
One of the easiest ways of accomplishing all of these objectives is for young couples to consult a financial advisor as soon as possible. By doing so they will reveal their finances to each other, develop a budget that matches their income, agree on an investment strategy, and be given a roadmap to long-term financial peace.
Our final essay on this subject will summarize what we have learned.
Korving & Company, the 2015 Suffolk Small Business of the Year is a family owned investment management and financial planning firm. We deliver a very personal level of service to guide, empower and assure our clients that their money is carefully managed to meet their long-term life goals.