Financial Know-How for Newlyweds: Steps to Take Before Tying the Knot

The wedding planning process can be daunting for both brides and grooms. With the average cost of a wedding exceeding $20,000, it's important for couples to discuss the budget for the big day as well as their financial goals and plans for after the honeymoon.

Marcy Blum, wedding planner and co-author of "Weddings for Dummies" and "Wedding Kit for Dummies," suggests taking time to talk about money and how to pay for expenses as soon as possible. "Planning a wedding together is a dress rehearsal for your life after the honeymoon," says Blum.

Blum suggests that couples be open, honest and pro-active about their financial status, whether they're preparing to walk down the aisle or just getting back from their honeymoon. Since money can be a sticky subject between husbands and wives, financial planning can go a long way to ensure a harmonious marriage.

Following are tips from Capital One for starting your joint finances on the right foot:

* Use a Rewards-Based Credit Card for Wedding Expenses

While earning points towards honeymoon travel, a credit card can also act as a safety net, protecting purchases and offering dispute options. Paying wedding expenses with a card like the MilesOne card from Capital One, which offers no blackout dates or seat restrictions, can even help newlyweds earn discounted or free airline tickets for the honeymoon.

* Getting to Know You

Make it a priority to learn the ins and outs of your spouse's financial status before the wedding to avoid surprises when making the first big joint purchase. Discuss your financial pasts and future, including credit history, current credit status, salary, savings, expected bonuses and investments.

* Mine, Yours or Ours?

Take the time to learn how joint bank accounts and credit cards work and discuss which method will work best for both of you. With joint cards, each account has a primary applicant and a co-applicant. The co-applicant should consider opening or maintaining an individual card in his or her name only to continue to build a credit history.

* Mr. and Mrs. Money

As a couple, sit down and review your combined expenses. Start developing a budget using tools like the spreadsheet from Blum's book, "Wedding Kit for Dummies." Next, agree on a short-term savings program, as well as a strategy to achieve long-term goals and a comfortable retirement.

* Stay Tuned In

Even if only one partner manages the bills, both partners should stay fully abreast of the family's financial status. Set aside a few minutes each week or month to discuss your current plan and readjust as necessary.

* Ask the Experts!

Consult with a financial advisor, use personal finance software or log onto a personal finance Web site such as www.capitalone.com to help you track and allocate your assets.

Courtesy of ARA Content