Couples Spending and Saving Together

Typically, young couples face a host of financial tasks, such as:

• Establishing a household, including purchasing durable goods . Setting out on a oareer, which may include paying for additional education
• Attaining financial independence, which may include paying earlier debts
• Organizing finances including budgets, record-keeping, saving and investment plans
• Purchasing insurance
• Minimizing taxes
• Making wills
• Preparing for the financial needs of children and/or aging parents.

These financial tasks can be more complicated for two wage earners than for one. Although two salaries may mean more income, household expenses often increase because of work-related expenses such as child care, clothing, eating out, and transportation.

Although household income traditionally increases during the working years, you might experience a decline in joint income. This could happen if you or your partner take time off to raise children, go to school, decide to take a lower-paying job, or lose a job.

Experts usually advise couples to:

• Agree where you would like to be financially in 15 or 20 years.
• Consider what steps to take now to realize your long-term financial goals.
• Develop a realistic spending plan that separates fixed expenses, such as entertainment and clothing. If you buy on credit, include debt repayment in the monthly budget. Also, allow for recreation and indulgence purchases.
• Remember to "pay yourself first". This means including monthly savings in the household budget, even if it is only a small amount. One rule of thumb is that you should have savings of about three to six months in take home pay to use for emergencies.