In 1895, 50 out of every 1,000 women in the UK got married annually.1 Currently, according to the Office for National Statistics, marriages are at the lowest rates ever.
In the last few years, on average, only 235,000 couples tied the knot each year in the UK.1 Is it due to the fact that the average cost of a wedding is somewhere between £10,000 and £20,000? Is it because nearly 119,000 couples get divorced each year (that’s 13 divorces an hour)?2
After the big day has concluded and the honeymoon is over, newlyweds are faced with the financial aftershock of a wedding and various pending financial issues. This will add stress to your new life as a married couple — as well as put you two in an awkward situation in which you will have to discuss finances at length. Before you walk down the aisle, sit down with your partner and talk though the following five financial questions.
1. How Much Debt Do You Have?
The average total debt per UK household (including mortgage) is £53, 716 in 2015.2 If you and your partner both attended university, have made any large purchases like a car or home, or have serious credit card debt — these are all things you need to discuss and make a financial plan to handle.
2. What Is Your Credit Score?
The average credit score in the UK is 783.3 If you and your partner are planning to make a large purchase in the future, the topic of your credit score should be at the top of the priority list. The simplest way to address this is to each print out a copy of your credit report to review and discuss. While it may be uncomfortable if you are slightly embarrassed with your score, it is better to be upfront about it.
3. What Are Your Short- And Long-Term Financial Goals?
Do you and your partner want to purchase a home in the near future? Do you two want to buy a new car or pay off old debt first? Sitting down and establishing goals for the present and future will be critical to your financial success as a couple. Working toward a goal will strengthen your bond and ensure you two always have a something to look ahead to.
4. Do You Want To Combine Finances?
One of the bigger financial decisions you will have to make as a couple is whether or not you want to combine your finances and have a joint bank account. There are pros and cons to combining finances. If you choose to have a joint account, that means there is no secrecy when it comes to finances and your communication about money will be frequent. The downside is if you are used to managing your finances privately, that will likely no longer be an option. An alternative that many couples choose is having three bank accounts — yours, mine and ours. This means each partner manages their own funds and each pay period some money will be put into your shared account for shared expenses.
5. Who Will Hold Financial Responsibility?
Who is better at money management — you or your partner? When you sit down to discuss your finances, also consider discussing one another’s financial habits. While it may be uncomfortable to admit bad financial habits, it will open up the communication of what to expect from one another and tips on how to improve.
References
1Rogers, S. (30 March 2011). Marriage rates in the UK. Retrieved 10 June 2015 from http://bit.ly/1QpuacL
2The Money Charity. (June 2015). The money statistics June 2015. Retrieved 10 June 2015 from http://bit.ly/1L20izx
3Christian. (19 May 2011). What is a good credit score? Retrieved 10 June 2015 from http://bit.ly/1e3JYAR
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Jordhan Woods 
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