The Ultimate Financial Starter Kit for Newlyweds: Planning Your Wedding and Beyond

Congratulations on your upcoming or recent nuptials! This is a thrilling time filled with joy, love and a lot of planning. At Money Fit, we’re excited for you and want to help ensure that your journey together is as smooth as possible, especially when it comes to finances.

You see, money matters are often a major source of stress in marriages. But it doesn’t have to be that way. With a bit of planning and open communication, you can set the stage for financial harmony that lasts a lifetime. This guide, along with our video on wedding financial planning, is designed to help you do just that.

The Wedding

Your wedding is a momentous occasion, a day filled with memories that you’ll cherish forever. But it’s also an event that can come with a hefty price tag. In 2019, the average US wedding cost was $28,000. However, due to the COVID-19 pandemic and social restrictions, this dropped to $19,000.

While it’s natural to want your big day to be perfect, it’s important to remember that spending more on your wedding doesn’t necessarily mean a happier or longer marriage. In fact, studies have shown the opposite: the more a couple spends on their wedding, the less likely they are to stay married.

To help you navigate the financial aspects of your wedding, we’ve created a video titled “How to Plan Financially for a Wedding.” This video breaks down the average costs and provides a detailed overview of 9 wedding-related spending categories you need to be aware of. These include everything from traditional stationary and printing to gifts and favors. We highly recommend watching the video for a comprehensive understanding of each category.

Financial To-Do List Before Your Wedding

Before you say “I do,” there are some crucial financial tasks you should complete together. These steps will help you start your married life on a solid financial footing.

1. Commit to Financial Cooperation: Agree to work together on all financial matters. This means making decisions together and respecting each other’s input.
2. Open Up About Finances: Be completely transparent about your financial situation. This includes discussing your debts, financial fears, habits, and credit history.
3. Set Financial Goals: Together, write down five financial goals you want to achieve. These could be short-term goals like saving for a honeymoon or long-term ones like buying a house or maximizing your 401k contributions.

Remember, your wedding is just the beginning of your journey together. By taking these steps, you’re not just planning a wedding; you’re planning for a lifetime of financial harmony.

The Honeymoon

The honeymoon is a special time to unwind and enjoy each other’s company after the whirlwind of wedding planning. However, it’s also an area where couples often overspend. Here are some tips to help you plan a memorable honeymoon without breaking the bank:

• Shop Around: Look for affordable destinations that offer the experiences you’re interested in. Remember, the most expensive places aren’t always the most romantic or enjoyable.
• Plan for the Future: Consider saving the exotic and expensive trips for future anniversaries. By then, you’ll likely have a more solid handle on your finances and possibly higher-paying jobs.
• Create a Budget: Just like your wedding, your honeymoon needs a budget. Include a “splurge fund” for unexpected expenses or special treats.

Financial To-Do List Before and During the Honeymoon

1. Discuss Your Preferences: Talk about what you both want from the honeymoon. Do you prefer a bustling city or a secluded beach? Long flights or a road trip? Multiple destinations or one relaxing spot?
2. Use a Debit Card: To keep spending in check, consider using a debit card instead of a credit card. However, keep a credit card on hand for emergencies and purchase protection.

Post-Honeymoon

Once the honeymoon is over, it’s time to get down to the business of managing your shared financial lives. Here are some steps to get you started:

• Have Regular Financial Discussions: Set aside time each week to review your finances and track your progress towards your goals.
• Set Up a Household Banking System: Some couples prefer to merge their finances completely, while others keep separate accounts. Choose the system that works best for you, but remember, transparency and trust are key.
• Create a Spending Plan: This will help you manage your income and expenses, and ensure you’re saving for your goals.

Financial To-Do List within One Month of the Honeymoon

1. Open a Joint Account: This account will be used for all shared expenses, such as housing, food, and transportation.
2. Decide on Discretionary Spending: Determine how much “fun money” each spouse gets each month. This money can be used for personal entertainment, gifts, or individual goals, with no questions asked.

The First Year

The first year of marriage is a time of adjustment and setting the foundation for your future together. Here are some financial steps to take during this crucial period:

• Build Your Credit: Good credit is essential for major purchases like a home. Make a plan to build or improve your credit scores.
• Plan for Debt: If you have debt, create a plan to pay it off. If you’re debt-free, make a plan to stay that way.
• Start Saving for Retirement: Discuss your retirement goals and start saving. If your employer offers a 401(k) match, take full advantage of it.

Financial To-Do List within the First Year of Marriage

1. Automate Your Bills: Set up automatic payments for your bills to ensure they’re paid on time.
2. Check Your Credit Reports: You can get a free report from each of the three major credit bureaus once a year at AnnualCreditReport.com.
3. Maximize Your Retirement Contributions: Based on your budget, try to contribute as much as you can to your retirement accounts.

The first five years of marriage can fly by, but they’re also a crucial period for establishing a solid financial foundation. Here are some strategies to consider:

• Control Consumer Spending: Resist the temptation to supplement your lifestyle with credit or store cards. Remember, if you can’t afford it now, it’s better to save up for it.
• Plan for Children’s Education: If you plan to have children, start discussing educational savings goals. Consider tax-advantaged plans like 529 and Coverdell education savings accounts.
• Avoid Overspending on Lifestyle Items: Be mindful of spending on vehicles, technology, and furniture. Consider buying recent-model used vehicles and keeping items for several years before replacing them.

Financial To-Do List within the First Five Years of Marriage

1. Set Up a 529 Plan: If you’re planning for children’s education, contact your state’s treasurer’s office about setting up a 529 college savings plan.
2. Become Financially Educated: Take advantage of free resources to learn about investing, budgeting, and building credit. The more you know, the better financial decisions you can make.
3. Teach Your Children About Money: If you have children, start teaching them about money early. Let them earn money doing chores and learn from their spending decisions.

Charting Your Financial Future Together

Marriage is a beautiful journey, and like any journey, it’s smoother when you have a map. This financial guide, along with our video on wedding financial planning, is designed to provide that map for your financial journey together.

Remember, the key to financial harmony in marriage is open communication, mutual respect, and shared goals. It’s not always easy, but with these tools, you’re well-equipped to build a strong financial future together.

At Money Fit, we’re here to help you every step of the way. Don’t hesitate to reach out if you need assistance or have questions. And don’t forget to take advantage of our free Wedding Budget Calculator and other resources.

Congratulations again on your marriage, and here’s to a future filled with financial harmony and happiness!