First comes love, then comes marriage, then comes a mortgage…and credit cards…and credit reports! Money is a third-wheel in many modern relationships. And if couples are not careful, money issues can also lead to a lot of arguments. Working together to achieve and maintain financial health can be a powerful step forward for a couple. We even have an easy-to-use worksheet to help you have the “money talk” if you haven't already.
In honor of Valentine's Day this month, we're sharing no-stress money and credit tips for couples:
1. Keep separate accounts
A simple way to manage your money in a relationship is to keep individual checking and credit card accounts open. Manage shared financial goals and costs by making automated deposits into a shared savings or checking account. Plus, keeping your own accounts helps ensure you both have healthy credit histories.
2. Know your credit
It is a myth that marriage ties together your credit reports. Only joint and co-signed accounts will appear on both records; everything else remains individual. Make it a goal for both of you to check all three of your credit reports and credit scores once or twice a year.
3. Get out of debt…together
Being in debt can cause conflict in your relationship and hardship to your financial bottom line. It can also damage your credit. Work together to create a plan for becoming debt-free. If you need help, you can click here for a free consultation from our debt experts.
4. Set fun savings goals
Encourage saving as a couple by setting specific goals, such as a vacation in the Caribbean or a down payment on a house. When you're working together toward a common goal, saving won't sting so much. Opening a free high-yield savings account online means you'll earn a healthy 3.65% APY each year.
5. Invest in your relationship
Constantly fighting about replacing old appliances or how badly the house needs to be painted? Stop the arguments by taking action. Apply for a Citi Flex Line of Credit today and finance the change you want to see in your relationship.
Anti-Valentine's Day Bonus Tip
Has your relationship recently gone bad? Break-ups and divorce can have major negative consequences on your credit. Because divorce decrees don't end responsibility for shared accounts, you could be stuck with credit damage from your ex if you are not careful. Jilted lovers have also been known to commit identity theft to get revenge. Click here for tips on protecting your finances during a break-up.
What money conflicts do you have in your relationship? Do you have a great tip for managing shared finances? Share your stories and questions with us at tidbits@credit.com
Quote of the Month
"For two people in a marriage to live together day after day is unquestionably the one miracle the Vatican has overlooked."
- Bill Cosby |
