Budgeting Tips for Newlyweds: How to Manage Money as a Couple

Money is one of the first big things newlyweds learn to navigate together. Whether you're combining incomes, figuring out how to split bills, or saving for your first home, it's normal to have questions about managing money as a couple. These budgeting tips for newlyweds will help you talk openly about your finances, understand each other's spending habits, set shared goals, and create a budget that works for both of you.

You don't have to have everything figured out right away. By taking small steps together and checking in regularly, you can build healthy money habits and feel more confident about your financial future.

How Should Newlyweds Handle Finances?

Communicating your thoughts about spending is best to do before you get married. However, it’s never too late to talk about your finances with your spouse. In the event that you failed to discuss the topic before your marriage, you should discuss the matter as soon as possible with your significant other. You will have to go through the accounts you have open and the debts you owe. You should also be clear on how you would like future money to be handled, and then listen to your spouse for their suggestions. Together, you will be better equipped to make any changes that you both agree on.

Set Shared Financial Goals

Once you come up with your baseline financial status, discuss the long-term financial goals that you might have, such as retiring at a certain age or paying off your debts completely. Make sure that you write down your goals and review them regularly. By doing so, you will have a better chance of success.

Should Newlyweds Get a Joint Bank Account?

There are ups and downs of having a joint bank account as well as maintaining individual accounts after marriage. Some may even opt for both types of accounts. By combining your accounts, you can simplify your finances and develop trust in your marriage. It can also benefit you and your spouse if either one of you chooses to take on the extra household or child rearing duties. Having some independence may be preferred by the both of you.

Watch the Video: Should You Get a Joint Bank Account?

Build an Emergency Fund Together

Make saving for an emergency fund one of your top priorities. Aim for saving at least six months of your household expenses for emergencies. It should be a priority because an emergency fund can bring security and help protect your relationship if some disaster or mishap arises, such as a serious injury or job loss.

How to Create a Budget for Newlyweds

Make sure that you stay within a budget each month. Limit how much you can spend on a certain budget category in a month. You should do so by reviewing your joint expenses for a few months to understand how much you and your spouse have been spending, and whether you need to reduce the amount. Once you have done that, you can establish a limit on every category that you decide on. Don’t forget to allocate some funds for surprise events.

Tips for Budgeting as a Couple

• Try the envelope system. Give each spending category a set amount of cash or a separate digital “envelope,” and stop spending in that category when it’s empty.
• Use a shared spreadsheet or budgeting app. Track your spending and review your totals together at the end of each month.
• Pay your credit card balance in full each month. This keeps interest charges from eating into your budget.
• Schedule regular money check-ins. A quick monthly talk helps you both stay on the same page. Never assume the other person took care of a bill or stayed within the budget. It’s better to ask.

Make a Plan to Pay Off Debt Together

Being in debt can be damaging even for a single person, but it becomes a double threat when two people have to pay it off.  Work out a plan with your spouse for getting rid of your debt and making sure you do not get back into it. If one or both of you have extensive debt it maybe helpful for you to speak to a representative of your credit union to help you create a workable plan. 

Update Your Paperwork After the Wedding

Getting married changes more than your budget. A few updates now can save you headaches at tax time:

• Report a name change to Social Security. If either of you changes your name, file Form SS-5 with the Social Security Administration so your name matches your tax return.
• Update your Form W-4. Give your employers a new W-4 so the right amount of tax is withheld from your paychecks. The IRS Withholding Estimator can help if you both work.
• Update your address. If you move, file IRS Form 8822 and let the post office know.
• Choose your filing status. If you’re married as of December 31, you’re considered married for the whole tax year. Compare filing jointly and filing separately to see which works better for you.

Manage Your Money as a Team with Help from First Alliance Credit Union

Many marriages are affected by money problems. Unfortunately, those problems can stay with them for a long time if proper measures are not taken. Newlyweds need to communicate their financial issues and expectations with each other and plan a financial strategy together in order to avoid any conflict. 

If you need help setting up a financial strategy, contact a First Alliance Advisor today. They'll help you figure out you and your spouse's financial situation and give you some valuable insight about the next steps you can take to achieve your financial goals. 

Questions about how to handle your finances as a couple? Ask us!