"For richer or poorer" may be just a small part of your wedding vows, but from the day you are married, the way your finances are handled will become one of the biggest changes in your newlywed lives. From learning each other's spending styles to deciding which accounts to consolidate, getting married can seem more like a bank transaction than an act of love. But it's crucial to coordinate your fiscal lives together, and some basic financial planning can go a long way to help newlyweds start out and stay financially savvy until death do them part. The following steps can help newlyweds establish a solid financial foundation for the future.

Assemble a Financial Picture

Chris White, a Vice President in the private client division of Cincinnati-based Provident Financial Advisers, says few couples know everything about their partner's finances when they're first married. "They need to talk about their entire financial situation right off the bat so at least if they're not on the same page, they can recognize that and make some efforts to understand that they now have one financial picture instead of two," he says.

A good way to start is to hold a financial "summit" where each person brings all of their financials to the table. Tony Roderick, Vice President and regional manager at Fifth Third Bank of Northern Kentucky, suggests that each person create a net worth statement, subtracting debts from assets, and share it with the other. "This will help establish trust and understanding," he says, as well as outline their financial standing as a couple.

Manage Debt and Credit

Couples should also obtain and share their credit reports, says Roderick, who adds that credit card debt averaged more than $8,000 per family in 2003. "If spouses bring debt to the marriage, they should discuss how to pay it down, prioritizing according to the interest payment expense," he says. Even if there is no significant debt at the time, he says, couples should discuss their debt comfort level to make sure it doesn't grow too high in the future.

Many couples are surprised to find that once they are married, their credit histories will be combined. "If he has a poor credit history and she has a good one, the blemishes on his will become her blemishes as well," White explains. That's why he says it's important to establish credit, both together and individually, going forward. Couples can establish new credit by getting credit cards in their own individual names or putting only one person's name on other documents such as bills or lease agreements. If you really want to keep joint accounts, White suggests alternating whose name is listed first on the record, as that listing ties directly back to that individual's credit rating.

Determine Household Finances

Two lives have now become one. Should two checkbooks become one as well? That's up to each individual couple, but they all must decide how they want to handle the many components of household financial management, says Roderick. "Couples should decide who will manage the money, and how," he says, "including whether to use joint or separate checking accounts, and who will handle bill paying and when."

White agrees, but cautions that just because one spouse may be doing all the paperwork, the other is not off the hook for being involved. "It's best if one person is assigned to that duty and the other is involved," he says. "The other spouse needs to know what's going on–it's their money, too. It's a mutual decision and a mutual relationship, and they both need to be involved."

Start a Spending Plan

To help keep financial harmony and start building their resources, couples should develop a spending plan so they agree on what their spending habits are and where their money will go. "Before we get married, we pretty much live paycheck-to-paycheck," White says. "But after marriage, things change. They don't have to change drastically, but they need to be more structured."

Enter the dreaded "B-word:" budget. Contrary to popular belief, White says a budget doesn't have to be a stringent, down-to-the-penny spending regimen. "The budget doesn't have to be something that's not flexible; it should be a guideline for what they do each month," he says. Roderick recommends that couples develop a first-year budget together, on a monthly and annual basis, and make corrections at the end of that year based on the spending and saving patterns they have seen and decisions they have made.

Because issues are likely to arise, he adds, it's important to discuss differences and be willing to compromise in spending patterns. "Buying big-ticket items can be especially difficult decisions," he says. To help keep the financial waters smooth, he says couples should agree to make financial decisions together, and include threshold levels for spending decisions, "so that, for example, a $25 lunch is an individual decision, but a $500 washing machine purchase is a joint decision," he says.

Prepare for Emergencies

No newlywed wants to think about the curveballs life may throw them, but it's important to be prepared for financial emergencies. White suggests couples establish a savings account specifically for such situations, and that it should typically contain three to six months worth of non-discretionary living expenses. "Then if someone gets laid off and the bills, rent or mortgage is due, you're not cash-strapped and don't have to worry about getting into more credit card debt," he says.

White also strongly recommends couples get life insurance, especially if they plan to have children. "With term insurance, you can get a $100,000 policy for $100 a year, which is pretty cheap. That way if something happens to you, your spouse and family have something to fall back on," he says. Disability insurance is also worth looking into, he adds, because 25 percent of all working people will suffer a disability at some point in their lives.

Plan for Future Goals

Newlyweds should start making financial plans for the future as soon as a strong foundation has been laid for handling day-to-day financial matters. "You need to identify your goals and develop your finances accordingly," says White. "Figure out what you want and how to achieve it." For example, he says, many married couples want to purchase a home. "It generally takes three to five years to pay for a home's down payment [without needing private mortgage insurance]. So you need to build up enough to pay for it, and the earlier you start, the better," he says.

Planning for children is another extremely important financial issue many newlyweds face. This is one area where fiscal ideals vary widely, says Roderick. "Some formerly frugal spouses splurge on children, believing nothing is good enough. Conversely, others may begin saving aggressively, changing their current lifestyles by emphasizing the future," he says. Again, frank discussions and compromise are the keys to solving any problems that arise. And don't forget to start planning for the future of those children as well: Roderick says couples planning to have children should look into tax-deferred savings plans to provide for their children's future educational needs.

Luckily, one of the biggest financial matters newlyweds need to think about is also the one for which they have the most time to plan: retirement. "Regardless of your age, your retirement is something that needs to be considered and planned for," says White. "Too many young people tend to put it off, which is a mistake."

Roderick suggests comparing retirement plans, including when you hope to retire, where, and in what style. Then start building that nest egg accordingly. "Many couples now nearing retirement age report that they built a substantial nest egg by starting, early in their marriages, to save even such small amounts as $50 or $100 every month in mutual funds," he says. Though the specifics of your retirement may change many times over the course of your lives, building wealth early will help make any of those scenarios easier to achieve.

Planning for the far-off future may seem a bit overwhelming to newlyweds who are already dealing with so many changes. But starting early and with a solid plan will help turn your financial goals into reality, White says. "It's great to say you want to buy a house or retire wealthy, but you need to put some real numbers and some real strategy to it," he says. "Otherwise it's not a goal, it's a dream."


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