Lorraine J. Green, ContributorWELL, THE season is upon us: the season of chiming bells, solemn vows, diamond rings and three-tiered cakes. Yes, we are on the cusp of the wedding season. And while we grapple with the seating arrangements and who should not be a part of the bridal party, there is another matter for consideration: the finance factor.
According to the text Financial Tips for Newlyweds, research has shown that the number one reason that marriages fail is because of money.
For the purposes of this article we will discuss four things that you should ask each other which will impact your being able to meet your wealth objectives as a couple.
PERSONAL MONEY HABITS
The first topic that you both should discuss is 'personal money habits'. Ask questions like, how much cash do you carry? What types of cards do you use credit cards or debit cards? How many credit cards do you have? What do you use your credit cards to purchase?
Knowing the personal money habits and, by extension, the personal spending habits of your partner is a clear marker as to the steps that need to be taken for both of you to comfortably meet your wealth objectives, such as establishing a joint chequing account for household expenses which is deducted from your salary using a standing order instruction.
LOGISTICS OF MONEY HANDLING
This area will require you to ask questions like, do you balance your chequebook each month? Do you have a budget? Do you save receipts? Do you pay your bills on time?
The answers will allow you to identify who should be responsible for handling the financial affairs - the one with the greater money management and administrative skills. It is important that in this financial face-to-face you are honest, specific and frank about your financial strengths and weaknesses. Remember the financial person you are before the wedding will continue to exist after the ceremony.
INVESTMENT HISTORY
Another area for discussion is your future spouse's investment history. Find out what types of stocks, mutual funds, pension plans or monies outside of regular chequing and savings accounts your partner has. As a couple, you need to identify what your objectives are, whether it is buying a house in three years, having two or three children and educating them, buying a sport utility vehicle, and choosing the investment products that will allow you to meet these objectives.
CREDIT HISTORY
Ask questions like, what have you borrowed money for, and from which institution? Any issues with repayment or debt?
It is important for both of you to realise that a marriage is like the merger of two businesses where you will take on the revenues as well as the debts of the other entity. Your partner being heavily indebted is now a concern for both of you. It is in your best interest that you are very open about the debts that you have so that they can be controlled and addressed as quickly as possible.
Lorraine J. Green is a wealth manager at NCB Capital Markets. Contact her at 1-888-4WEALTH or info@ncbcapitalmarkets.com
NCB Capital Markets Limited (NCBCML) through its representative(s) has provided information to you on various financial products and services and investment opportunities for information and educational purposes only. While NCBCML has made every effort to ensure that the information provided to you is accurate and based on research and analysis that we have carried out or derived from sources that we believe to be accurate and reliable, NCBCML makes no representations or warranties about the accuracy, completeness or suitability for any purpose of the information published and will not be liable for any loss which you or anyone else may suffer in reliance on the information we have provided to you
