79% of new brides do not plan how they will manage their personal finance when they start their new life. They solely depend on their significant other. However, this can lead to financial dependence in later phases of life. Therefore, it is necessary to mention some of the leading money mistakes newly married women make and how to avoid those mistakes. Below are some of these financial blunders along with solutions on how to deal with them:
“We Both Share Same Ideas”
Just because they are in love, newly married couples feel that they share same ideas. Along with that, new brides think that their spouse will handle all financial matters properly. However, things cannot be the same forever. Financial experts recommend opening a joint account. In addition, new brides can take equal financial responsibility as that of their spouse. For instance, if you want to invest money, you can participate in the decision equally.
“He Is the Bread Earner So He Is Responsible For the Finances”
The above statement applies to stay-at-home moms who let their spouse manage all finances. Although it shows how much, they trust each other, it may be risky in the future. If they divorce after several years, financial matters may not get resolved that easily.
Therefore, make sure that you know how to be financially responsible right from the beginning.
“Let Us Live In the Present”
Some new brides do not plan for future investments. They are of the opinion that one should not care about personal finance from the beginning of their married life. In addition, if their spouse also has careless spending habits, then it can result in financial issues in the future.
In order to avoid this situation, financial experts suggest that one should check the FICO score of her spouse. This score helps you determine how well your spouse has been managing his finances. These finances include credit cards, student loans, and car payments. If there is a need for improvement, both partners should discuss it in detail.
“We Are Together So We Should Have a Joint Account”
Although joint account statements let new brides well informed about the financial situation, it surely has a drawback. If you open a joint account, it will affect your own FICO scores. This is because your spouse’s spending will also be added in your FICO score. Therefore, it is crucial that both of you should have separate accounts in your own names.
In case, if death or divorce occurs, your FICO score will be separate from your spouses. Eventually, it will help you avoid any financial insecurity in the future.
“We Will Retire On Pension and Savings”
Although we all hope for the best in future, financially savvy people should always follow the trends. It is not necessary that a couple has a lot of savings and pensions when they retire. Therefore, they should manage their personal finance well to secure the future.