Here are five important things which everyone should know about household finances depending on the five different stages of life.
1. Discussing post-marriage finance with your family
It is always a good thing if the couple sits together and talk to each other about finance before marriage. If you are getting married, sit down with your fiancé and talk to them about the current financial situation. Tell them everything about your situation, even about the smallest debts that you have to pay. Discuss with them your long-term and short-term financial goals. Tell them how much you own and what expenses you alone incur. Discuss together how this will all change after marriage. When you do a pre-marriage discussion, you should also develop some mutual financial goals. Share your goals with your partner and analyze which goals are common between you two. If you both have a lot of debt, consider seeking out a service that offers debt consolidation in Toronto or whatever city you live in. Make keeping these goals your priority after marriage. With a fruitful discussion, you could have a great life ahead.
2. Financial discussion between newlyweds
There are many aspects of finances that a person can discuss with their spouse. Many people discuss their financial issues and budgets, but the most important aspect that newlyweds should talk about is whether they should combine their financial accounts. A joint account has many benefits, but then there are some drawbacks too. Speak to your spouse about these benefits and drawbacks before you join accounts or create a new joint account in a bank.
3. Having a baby
When you are about to have a baby, it is time you change your budget. Plan a new budget with your spouse keeping in mind all the new expenses you will incur. Often there are many vital aspects which are overlooked such as increased clothing costs, increased healthcare costs, and the purchase of baby products. Keep these things in mind and discuss with your spouse to create a new budget.
4. Kids going to college
In the recent years, the cost of education has increased a lot. Once you have a newly born, you have 18 years to plan for their future. You must have a proper plan to save money for the day your child enters college. Develop a savings plan with your spouse as early as possible. There a few things which can help you with your kids college expenses, which include:
College controlled aid
Scholarships are the best way to make sure you do not have to spend a lot.
5. Personal finances after a divorce
Although I hope there is no such situation as every family should live a long life without getting a divorce, like many other things in life, divorce can happen unexpectedly.
You have to be well prepared if any such thing occurs. You should be aware of the government laws and regulations. There are many things which you might have to discuss with your lawyer. If you had a joint account with your spouse, it is another significant financial problem which you might face after a divorce. Therefore, be prepared for all kinds of financial issues once you have a divorce.