4 Money Mistakes Newly Married Women Make!
Did you know statistically that 80% of new brides do not plan how they will manage their personal finance when they start their new life?
They exclusively depend on their new partner. However, this can and does lead to financial dependence in later phases of life.
I am going to give you solutions to these money mistakes so you can avoid them and have a great relationship with money and your partner.
Women have to be their own ‘White Knight’ when it comes to money.
Mistake #1: Assume that you both share the same ideas about money.
When you are in love and newly married you feel like you share the same ideas. Along with that, new brides think that their spouse will handle all the financial matters appropriately. However, things cannot be the same forever.
I highly recommend opening a joint account, and the new bride taking equal financial responsibility as that of their spouse. For instance, if you want to invest money, you can share in the decision equally.
Mistake #2: Delegate the ‘Bread Winner’ to be responsible for the finances.
This mistake applies to stay at home moms (although I have seen working partners do this too) who let their spouse manage all of the finances. It does show how much, you trust each other, but you could be setting yourself up for risky business in the future. If you divorce after several years, financial matters may not get resolved that easily. In fact you are responsible for half of everything, whether you knew about it or not. I have seen the horror stories!
It is imperative that you know how to be financially responsible and talk about your finances right from the beginning.
Mistake #3: Live only in the present.
When you are young, the last thing most are thinking about is retirement and future planning, it’s all about the here and now, new house, car and ‘stuff’. Most new brides do not plan for future investments. They are of the opinion that one should not care too much about their personal finance from the beginning of their married life. If their spouse also has careless spending habits, then it can result in financial problems in the future.
I suggest that you do your homework, check the credit score of your new spouse, it will help 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.
Mistake #4: All we need is joint account because we are a couple now.
As I said earlier joint account statements let new brides keep well informed about their financial situation with your partner, but it does have a drawback. If you open a joint account, it will affect your own credit rating. This is because your spouse’s spending will also be added in your FICO score.
I believe 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.