Discover what you must discuss with your other half; from your financial duties to kids. Money management is the most important conversation every married couple must have. The only way to secure your financial future is to plan it out. Ask these money questions to your hubby now and start planning a better financial future!
What’s your credit history?
Ideally, you’d want to swap credit histories before getting engaged. But many people find this awkward especially in an arranged marriage set-up. Ask your husband about finances by showing him any article (including this one) and ask your better half about his credit history. Don’t start fighting; tell him that you’re more concerned about your joint future than his past.
Should you go for separate bank and credit card accounts or a joint one?
Many experts recommend having some of your own personal accounts and a low-limit credit card, in addition to joint ones. But why do you need your own account if you are a home-maker now? As you may find it difficult to re-establish credit once you re-enter the workforce, start a business or are divorced or widowed. Choose how much you each will contribute to your shared account and put that in every month. “We have a joint account that pays for our mobile bills, petrol and grocery. We put about 20% each of our salaries in it,” says Seema Rai. “It took us two years to find this perfect balance but not this is a hassle-free arrangement,” she adds.
Who’s responsible for what financial duties?
It’s easier for one partner to be in charge preferably the one good at accounts. But if a divide-and-spend strategy works best for your family, that’s fine, too. “My hubby prioritised saving from day one of our wedding, even though I earn, he spends on everything and my entire salary is saved for any financial crisis,” says Akansha Makhija, 25, married for three years. Just make sure accounts are balanced monthly and the balances of each are communicated regularly to prevent a fight.
What types of purchases do we need to consult each other about?
You might not always agree with your partner’s spending habits, but you can agree that any purchase over a certain amount (say above 10k) will be discussed in advance. Figure out a limit that will accommodate week-to-week expenses, including a big grocery trip.
Deciding the future: kids, their education, and your parents?
Figure out your kid-care plan ahead of time. You might find that a nanny or maid (plus a night shift one) will cost almost as much as one of your salaries. We at Aaw researched and found nurses come at an approximate of 18-25k per month!
It’s best to discuss early education even before your children are born. Determine how much you can contribute to higher education savings. See if taking an education policy will help.
Plan your parent’s future carefully. Open up a dialogue with each set of parents but make it clear that you’re not trying to pry into their finances. Just offer help but tell them you need the facts on their situation. Find out if they already have long-term care insurance.
The retirement plans.
Most couples never discuss retirement plans. Initially discuss how much each of you has in retirement savings and how much you’re setting aside per year. A general rule is to put at least 10% of your income toward retirement savings.
One golden advice: do not end up fighting. Money is a touchy topic, be calm when you discuss finances. If one of you starts loosing temper it’s better to stop the discussion and wait till the temper fizzles down.
