Getting married is a huge life decision, especially for women.
The responsibilities of childbirth, raising kids, and taking care of the family come with social norm expectations obliging women to sacrifice career and financial momentum.
But did you know that these problems can be solved through financial literacy and planning?
You guys should definitely have “the talk” before jumping into something serious.
As the saying goes, marriage is not something you swallow and throw up later on when you realize it’s hot.
Here are some female financial planning tips you can consider before walking down the aisle with your husband-to-be.
Women’s Financial Planning Over The Years
Believe it or not, only a mere 9% of women believe that they can make better monetary investments than men.
You may be thinking, how could that be when mothers are often in charge of managing the daily expenses at home?
The answer is simple—financial planning resources for women are still limited even up to this day. The low confidence of ladies over the subject of financial independence is derived from the following gender-based earning facts:
- Women only earn $0.80 for every dollar an average man makes
- Womenfolk has fewer chances to ask for a pay raise than men
- There are not enough females in high-earning career fields
- The poverty rates among women are higher than men
- Women take on more family/household responsibilities
Despite women’s glaring disadvantage regarding financial opportunities and planning, ladies tend to have higher saving rates than their opposite gender. In fact, some studies suggest that the female population earns better investment returns than men.
But with all these monetary hurdles we mentioned, how can you ensure financial security before and after the wedding bells ring?
Pre-marriage Financial Planning For Women
Personal Debts & Credit Standing
Like it or not, marriage is a legally binding procedure.
And now that you’ve chosen to walk down the flowery aisle with your most beloved, being honest with your debts and credits is a crucial foundation of your union.
If both of you have outstanding debts via student loans, credit cards, or any type of bill, the best way to tackle this is to consolidate everything.
One of the biggest dilemmas of female financial planning is figuring out how to settle these debts. Should the two of you pay for them individually or jointly?
Personal loans can become handy for couples who intend to settle debts before marrying. However, its terms and rates depend on your current credit standing.
Consider weighing your overall debts and income if you decide to pay dues together. Compute the monthly payment and divide it with you and your spouse’s gross income per month.
Individual & Separate Bank Accounts
Sharing last names and bedsheets is common in marriage—but did you know that you and your partner can have separate bank accounts?
Younger couples have shown higher interest in keeping financial accounts separate from their spouses over the past years. This preference often emerges from the fact that joint bank accounts insinuate a lack of financial independence for both parties.
When deciding this matter, don’t forget to consider current debts.
If you or your husband owes money to a creditor, keep in mind that they may collect dues via your joint account should you decide to open one.
The best you can do is discuss how financial loads will be settled to avoid conflicts. Better yet, you can try to open a joint bank account for necessary expenses and have separate ones for personal finance.
Long-term Financial Goals
Women’s financial planning doesn’t end upon actual marriage. In fact, managing how you’ll spend and save money should be a continuous process throughout your married life.
Besides the newly wedded bliss, managing living expenses and building wealth are crucial factors of pre-marriage financial planning for women.
Remember, every financial decision in the household will have to be in mutual agreement.
First, you and your spouse should set a budget. The household expenses must align with income, or else you’ll soon find yourself down the debt hole.
Allocating money for an emergency fund can also aid your new family against unprecedented expenses. It’s also good to set aside part of your income if you plan to buy a new home, car, or start a business in the long run.
Getting married shouldn’t be the only reason to start female financial planning. Whether it’s divorce, welcoming a baby, or getting a new job, being financially aware should be in every phase of our lives as women.
Don’t be intimidated to start. Find new sources of income to achieve financial freedom and build the life you want before, during, and even after the marriage.