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Setting up a money
management system
By Michelle
Samaad • Bankrate.com
Like planning a wedding, deciding how to manage
money is a matter of taste. And deciding with whom you will spend
the rest of your life certainly affects how the cash will be handled.
There is no right or wrong answer but for couples
like Keith and Tabitha Kerr of Atlanta, getting married meant "becoming
one."
"It was like a non-issue," says Tabitha of the
decision to merge their money into one checking account. "We figured
since we're on the same path heading in the same direction, there
shouldn't be any division in who gets what money."
Like many couples, the Kerrs manage all their
bills, including mortgage, car payments and daily expenses such
as gas money and dry cleaning, through one joint checking account.
They both have arranged to have 15 percent of their paychecks automatically
deposited into a savings account.
Some marriage counselors say what may work for
one couple would be a source of friction for another.
"When you choose the person you plan to spend
the rest of your life with, no one can make that decision for you,"
says Brenda Wade, a family psychologist in San Francisco. "The same
applies when deciding how to manage money -- you and your spouse
have to determine what works for the good of the marriage."
| Financial I do's and don't's |
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TO AID in setting up a money management
system and keep tabs on the spending, consider:
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TALKING ABOUT your individual approaches
to managing money. Differences are fine but they must be recognized
and compromised on fairly.
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ELECTING ONE person to handle the bills.
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ESTABLISHING A PLACE where you and
your spouse put all automated teller machine receipts, check
stubs, withdrawal and deposit slips, and pay stubs. Put your
bills in another place close by. Then sit down at the end
of the month to record all the transactions in your account
and go over all the bills.
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PURCHASING PERSONAL FINANCE software.
It's an easy, organized and efficient way to keep track of
your finances.
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ORDERING CHECKS that are backed by
carbons. You'll eliminate the problem of forgetting to record
the checks you've written. You and your spouse can also return
the check carbons to your central checkbook on a regular basis.
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DECIDING HOW each of you will pitch
in for items you share such as groceries, household items,
and rent or mortgage payments. You may want to tally each
person's contributions using personal finance software. Or
you may decide to more loosely track spending by taking turns
paying for shared expenses. Stick to whatever guidelines you
create and revisit them when unexpected situations arise.
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DISCUSSING MAJOR financial goals that
you want to meet as a couple, such as buying a house. Despite
the fact that you have separate bank accounts, you can settle
on personal saving goals for items that you'll eventually
buy together.
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GIVING YOUR SPOUSE access to your personal
bank account for emergency situations. Be aware that if you
get divorced, your spouse may still have a legal right to
some of the money in your personal bank account. If this is
a concern, discuss it with an attorney or financial planner.
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SETTING ASIDE TIME together to talk
to each other about your money. Often money matters are discussed
at the most inappropriate times (such as in the store or in
front of other people), and no good solutions are reached.
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SUPPORTING EACH OTHER'S individual financial
goals, as well as your goals as a couple.
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-- Posted: June 8, 1999
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