Couple Money » Family and Finances

Financial Benefits of Being Married

Elle — Fri, 13 Jan 2012 13:00:10 +0000

This post was written by Wayne at Young Family Finance. He writes about the every day financial challenges that young families face, like the cost of owning a dog.

Some people may suggest that managing your finances as a couple is more difficult than as a single individual. After all, it takes much more communication and control because you would be in financial ruins if you both went on a shopping spree without telling the other person.

While there may be certain challenges to managing your personal finances as a couple, there are many benefits as well. In fact, I want to suggest that the benefits of being married (or serious relationship) outweigh the costs. In other words, it is financially better to be a couple than two individuals.

Financial Improvements When I Got Married

When I got married, I was doing pretty well with myself. I was working as a Resident Director in a dormitory at a college campus while finishing up my undergrad. I was receiving full-tuition as a benefit of my job, while earning a salary. I had practically no living expenses, so I decided to save first before doing anything else. As a result, I was able to fund my entire emergency fund of $10,000+ in less than 6 months. I could have easily spent the money elsewhere, but in preparation for getting married, I wanted to save all that I could. It is easy to see that my financial situation was pretty good before getting married. So, how could it be better after getting married and increasing my expenses?

Yet, when I get married I found that my finances improved radically. While there is nothing magic about getting married (you don’t say, “I do” and automatically receive a $10,000 deposit from uncle Sam or anything) there are inherent benefits to getting married.

When I got married, I found out that my wife, who had little savings, already had a Roth IRA. She didn’t have a lot of savings because her father-in-law, who is a CPA, had strongly recommended her to open this retirement account while in college. She had put most of her savings into this account. While it doesn’t sound like a great move (to move 90% of your liquid assets into a retirement fund), it was a huge benefit for us. It helped us realized the benefit of saving for retirement at an early age. If I had remained single, who knows how long it would have taken for me to open this account. In case you are wondering – we both have Roth IRA’s (and maxed them out last year – even in our mid 20′s).

Another huge financial benefit for me after getting married was the transition to eating in. During college, I enjoyed eating out like any other college student. I didn’t go overboard, but I did eat out at least once a week on average. Once I got married – this came to a stop. I realized that in managing our finances, there was someone else that felt the impact of my every day decisions. Instead of spending money to go out to lunch every day (like most of our coworkers do), we bring out brown bag from home. This is just one example of how the priorities change when you get married. When you are a couple (and actually care about the other person more than a cheap thrill), you become more frugal. The little things don’t matter as much as the big things like anniversary vacations or life insurance coverage for each other in case something happens to the other person. Simply put: Your priorities change and with them, so do your finances.

Other Financial Benefits of Couples

While I recognize that my situation is different than everyone else’s, I still hold that managing your finances as a couple has more benefits than being single even without considering the priceless aspect of love. Some of the other benefits include:

Less Rent per person: If you are renting and able to keep the same size of apartment (or close to it), living with someone is always the cheaper option. You pay less rent per person. Think about it this way. If you can rent a 2 bedroom apartment and are trying to save money, what do you do? You find a roommate because that means you are paying less rent.
Double the Income: Another way to improve your financial situation is to have two incomes in the same household. Who would ever think that you could spend all the time that you want with someone while also practically doubling your income. If your partner or spouse doesn’t work, think of the other money you are savings in lack of daycare or not hiring someone to manage home life, etc. Either way, it’s an easy way to radically increase your earnings.

Regardless of how you look at it, being married or a couple has its clear advantages. I’m not saying you should go out there and marry someone just for the money. That would most likely lead to divorce and cost you more money in the long run. But, I am saying that being in a relationship does not just mean more expenses.

What are some other financial advantages to being in a relationship?

This post was written by Wayne at Young Family Finance. He writes about the every day financial challenges that young families face, like the cost of owning a dog.

Photo Credit: epSos.de

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The Best of Couple Money (2011 Edition)

Elle — Mon, 26 Dec 2011 13:00:42 +0000

This week I’m catching on some items on my to -do list that I’ve been putting off. It’s been an amazing year for me, both personally (our baby girl!) and professionally. I’m happy with how 2011 went and I’m looking forward to improving Couple Money in 2012.

I want to thank those of you who have been with me since the beginning and those who have joined recently.

As a way to wind down this year, I wanted to share some popular posts of 2011:

January – March 2011

The beginning of last year was memorable. I started having morning sickness and was feeling miserable. I kept myself positive as I kept thinking that soon we were going to have our baby some time in the summer. At that point don’t ask me why, but I thought we were going to have a boy. I only became confident when nearly everyone else was guessing boy as well. The only ones that mentioned girl were my husband and a family friend.

In February we went to get the more detailed ultrasound we found our we were going to have a little girl – my husband was right! Naturally he’s excited about being right and spend the rest of the month trying to reclaim the better parent title

As for Couple Money we had a great month with the netbook contest and being a part of Free Money Finances’ March Madness. With your votes of support, Couple Money raised $100 for Charity: Water.

April – June 2011

Anticipating the baby’s arrival, I decided to start banking some of my posts and scheduling them around her due date. This is very helpful for me because time seemed to crawl. June couldn’t get here quick enough. With the heat wave it feels even a bit longer.

I was also surprised to see how people felt about saving money for their kids’ college fund. I still believe you need to be out of high interest debt and have a retirement plan in place for yourself before you start saving up for a college fund, but some parents disagreed. I understand that parents want to give the best to their kids; I just believe that also includes leading by example.

July -September 2011

Our baby girl arrives in July and we’re off! Well, I was pretty much off the month of August. I did some light posting, but the schedule remained pretty much the same on the site since I had already written ahead. Exciting and fun times as we learned to survive on less sleep. Eventually things improve and our baby realized that nights are for sleeping, not playing or eating.

To add to our new insanity we drive up to Chicago for the Financial Blogger Conference. Couple Money was nominated for a Plutus Award, but alas, J. Money won. We had an awesome time and my little girl was a great conversation starter

October – December 2011

I got back into my new routine her on Couple Money, sharing tips about family and finances. We had 2 back to back contests that were popular – the tablet giveaway to celebrate Couple Money’s 2nd anniversary and the 50/50 Challenge where Julie picked up a new Kindle Fire. I already decided we’ll have both contests again next year, but I’m spreading them out.

Speaking of anniversaries, this month was our 5th and we had a great time celebrating it with our baby girl and friends.

Thoughts on Couple Money

Thank you again for a fantastic year! Which are your favorite Couple Money posts from the past year?

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Let’s All Go to the Movies…Cheaply!

Kay Lynn — Fri, 21 Oct 2011 11:45:46 +0000

Have you cut back on going to the movies because of the ticket prices? I don’t blame you for not wanting to pay anywhere between $8-13 just for a regular evening show. You don’t have to give up seeing new releases to save money. Here are some ways to see that movie for less.

Screenings

A few weeks ago my husband and I saw Real Steel before the official opening by going to a screening. We attended this screening thanks to a media invitation, but there were hundreds of other people who took advantage of free seats.

The studio doesn’t want the experience at screenings to include the audience reaction and will fill the theater with press first and then non-press afterwards. You can sign up for screenings in your city at various websites including Film Metro and gofobo.

A word of warning is to go early. More passes are awarded than there are seats so if you really want to see the movie go at least an hour early.

Matinees

We’ve been fans of the matinee shows because the prices are lower, the crowds are lighter and we’re not too tired! Many theaters not only have lower prices before 4-6 pm, but they also may offer an additional discount for the first showing of the day.

Check the price structures of your local movie houses.

Discount Tickets

Most theater chains sell discounted tickets to groups. You can buy these through work, a warehouse club or the entertainment book. I’ve found the price to be comparable to matinee fees but you get to go to the evening show!

Sometimes you may have to mail in for the discounted tickets as well so this option requires advance planning.

Rewards

We recently received two movie tickets just for drinking coke products and entering codes online. One of the rewards available from my credit card is gift cards to a national movie chain. Swagbucks can be redeemed for a gift card to Fandango.

These are just three ways you can see free movies from some type of reward program. You may already be building points that can earn you a free movie seat.

Daily Deal Sites

Websites that sell one deal a day offer discounted movie tickets usually at least 50% their regular price. Sometimes they’re packaged with refreshments. You are usually limited in the number of tickets that can be purchased and there is an expiration date if not used.

We’ve taken advantage of this several times and are happy to get two tickets, a popcorn and soda for $15. If you don’t normally buy food then it might not be as good a deal.

Getting tickets for free or half price means you don’t have to miss the latest installment of your favorite movie. How do you save money at the movies?

photo: by gailf548

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How to Select A Guardian for Your Children

Kay Lynn — Fri, 19 Aug 2011 12:00:24 +0000

Becoming a parent means being responsible for the care and well-being of your child for at least 18 years. But what if the unexpected happens? Who’s going to take care of your child(ren) if both parents are no longer around?

I remember the discussions my kids’ dad and I had when preparing our first wills many years ago. It’s natural for each parent to want the child to go with “their” family and it took some time to come to an agreement. Here is a list of criteria that can help you in this decision.

Values and Beliefs

Religious upbringing is an important consideration. Most likely, you want your child brought up by someone with the same religious background. Consider if the prospective guardian’s level of involvement in spiritual activities is something you would want for your child.

What values and characteristics are important to you? Make a list of qualities you would want your children to have and learn. Use this list to screen potential caretakers.

Location

Do you want your children to grow up where you live now? If this is important it will definitely narrow the list of candidates for many people. For me, this would be not a high priority, but then I spent my childhood moving from one military base to another.

Family Situation

Do your prospective guardians have children already? If yes, are the ages compatible with your child’s? If you have multiple children, maybe it would be better to select a couple that don’t have any especially if keeping the children together is important (which I think it should be).

Fitness

I don’t mean can the guardian run a marathon, but rather can they handle raising children. Your parents or grandparents might make wonderful caregivers but are they physically up to the demands of small children? We’re in good health and can be quite tired after a weekend with our 2-year-old grandson.

Is the guardian financially able to take on additional family members? Even with insurance and social security payments, it may not be enough to cover the cost of your children to their family.

Last, is the person emotionally fit to take on the job of guardian? You chose to take on the responsibility of parenting but it would be thrust upon the guardian. Are they strong enough for all the challenges of child-rearing?

Relationship

I put this last but it is maybe the most important criteria. Who has a strong relationship already with your child or children? It would definitely be easier on the child to live with someone who they already know and love.

Once you’ve made a decision, talk to the person and make sure they’re willing and able to take on the role. I would share the decision with close family members so they know your wishes.

Thinking about the worst things that can happen in life is not fun. Knowing your child is taken care of no matter what, makes it worth the work! What is your experience in selecting a guardian?

Photo Credit: docentjoyce

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Marrying into Debt: Handling Your New Spouse’s Debt

guest poster — Mon, 13 Jun 2011 12:00:30 +0000

The wedding was beautiful. The honeymoon created lifelong memories. Now, you return home to settle in to your new life and into your new reality. Before you took the walk down the aisle to wed your new spouse, you were debt-free. You had low or even no credit card balances, and you were on the right path financially.

Things are a lot different now. You’ve married into debt: Credit cards, student loans, the debt you didn’t have, your spouse does have. How do you handle your new spouse’s debt, and how does it affect you?

Marriage and Debt: Mine, Yours, or Ours?

One of the first questions newlyweds who marry into debt ask is: Am I responsible for my new spouse’s debt? It all depends on the state in which you live, whether it is a community state, and whether the debt was incurred during your marriage.

In community property states – Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin – you may be liable for your spouse’s debt if the debt was incurred during the marriage. In non-community states and when you did not sign for the debt, you won’t be liable for the debt. Check your state’s laws to find out where your liability – or non-liability – lies.

But, even if you aren’t legally liable for your spouse’s debt, how can you handle it? Will you help pay for it, or do you believe that it’s your spouse’s responsibility to pay off debt incurred before you married on his or her own?

Note: My personal feelings with debt and marriage now is handling it together. My husband was completely debt free when we married and I was ready to work to my car and student loans by myself, but he was encouraged me to tackle it as a team. -Elle

Combining Debts and Income

If you decide to help your spouse pay off his or her debt, you can work together toward financial stability. You have several options for making the debt more manageable. If you have a significant amount of credit card debt, you may want to consolidate your debt. Be sure you work with a reputable debt consolidation company. Credit card companies are often willing to work with consumers to help make their monthly payments more affordable, another option for handling and paying down your debt.

While some companies, like Sallie Mae, no longer offer student loan consolidation, you can still consolidate your student loan debt through federal programs. If your spouse has significant student loan debt, consolidation may be able to save you a lot of money each month.

In addition to consolidating debt, create a budget, cutting costs where feasible. For example, you may be able to turn off the landline in lieu of using only your cell phone, or you can cancel your cable until your debt is more manageable.

Separating Finances

If you believe the latter, you have several options for ensuring that your spouse pays his or her debt alone. (Your spouse may also want to consider debt consolidation and living with a budget, too.) Avoid opening a joint account until the debt is paid off; that way, you don’t have to worry about paying money toward the debt.

You may also want to split the bills to ensure both spouses are contributing equally. Some spouses opt for paying for the rent or mortgage while the other spouse pays utilities. Find a happy medium that works for both of you.

Ideally, whether you believe your spouse should pay for his or her own debt or you believe teamwork is the best solution, your best bet is to come up with how you’re going to deal with your spouse’s debt before you walk down the aisle.

George Gallagher is a personal finance and education blogger. He works with cuStudentLoans and is committed to helping students find affordable private student loans.

Photo Credit: giumaiolini

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