Getting married is an exciting time, but if one or both of you already has kids, it can be challenging to deal with money as a new family. If you don’t take the right steps to deal with money now, you may face conflicts in your marriage. That’s because money can impact nearly every area of your lives together. Luckily, there are a few things to do to make sure you are starting life together on the same page.
Dealing with Debt
If you have debt, it’s important to make sure you try to get it paid off, especially if the debt is only one partners. Debt can be a huge source of financial strain in a relationship, particularly when you have kids to think about. There are a few ways of getting your finances in order to pay off your debt. One option is to consider taking out a personal loan to consolidate debt, have a payoff plan, with an end in sight in order to get your finances in order. That frees up funds to put toward your debt.
Consider Your Financial Goals
Finding shared purposes and new ways to deal with the finances can actually be fun. Spend some time with your spouse writing down both long and short-term goals. Maybe you want to purchase a larger home in the future. Or you might make shared plans for caring for your combined families, especially when young kids are involved.
Dig a little deeper as you are planning out your finances. If you had lots of money, how would you like to budget for fun expenses each moth or year? Think about where you might go and what you might do. Know that doing money together does not have to be a chore and there are ways of making it fun. Outlining your joint goals can help you and your new spouse work together as a team, helping you lay the groundwork for both saving and spending. Since you might have different opinions about what the future looks like, make sure you are on the same page.
There are ways money affects psychological health and in the case of combining finances, this is something to consider. It’s a good idea to decide whether or not you want to combine your finances as a family and talk transparently about how that will look and everyone’s expectations. In many cases, it can be a good idea to do so, especially if there are kids involved. Depending on the situation, you might not have a choice at all. If you are not ready to completely link your financial lives together, you might decide to share some accounts but not others.
Consider Getting Insurance
When kids are involved, it is a great idea to think about getting life insurance coverage. That way, if one partner passes away unexpectedly, the other parent can still pay for living expenses. However, life insurance is not the only coverage to think about. When you combine families, you might want to consider whose health care plan is cheaper and put everyone on the same plan. and you might be able to put all cars on the same insurance plan since bundling it can often save you some money.