Planning to Get Married in 2025? Here’s Why You Shouldn’t Skip a Money Talk

Yet, amidst these heartfelt conversations, the topic of finances often gets brushed aside.

Talking about money is sensitive and, for many, uncomfortable. It’s a conversation that tends to be postponed until after the wedding, only to sometimes become a source of misunderstanding and stress.

Financial disagreements are among the leading causes of tension in marriages. Studies have also indicated that financial stress contributes to nearly 40% of divorces in India, and this percentage is growing.

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In this day and age, where both partners often earn and are financially independent, managing money can become more complex.

The demands of a highly competitive work environment often leave little room for quality time together, which, when coupled with a lack of clear communication about finances, can lead to misunderstandings and friction.

However, much of this distress can be avoided through open, honest conversations about money before the marriage. Even if you’ve known your partner for years, having the “money talk” before tying the knot is essential.

Furthermore, this financial conversation should not only focus on splitting bills but should also cover topics such as spending habits, saving and investing priorities, and long-term financial goals.

Consider the example of a newlywed couple Riya and Aman.

Riya is a spontaneous spender who loves indulging in experiences like impromptu weekend getaways, fine dining, and shopping for the latest trends.

Aman, on the other hand, is cautious with money, prioritising savings and investments to build a financially secure future.

While Riya values living in the moment, Aman feels anxious about meeting future goals, such as buying a home, funding their children’s education, and retiring comfortably.

Shortly after their wedding, the couple finds themselves arguing over their finances. Aman struggles to understand Riya’s carefree attitude towards money, while Riya feels restricted by Aman’s meticulous budgeting.

Adding to the strain, Riya has an outstanding credit card debt she never discussed with Aman, and Aman has been contributing heavily to his investments, leaving little for essential monthly expenses.

Had Riya and Aman discussed their financial outlooks before marriage, they could have avoided this tension. Open communication could have helped them understand each other’s priorities, plan their finances accordingly, and establish a common ground.

For instance, they might have agreed to allocate a portion of their income to joint savings and investments while setting aside a monthly limit for discretionary spending to suit Riya’s lifestyle.

Talking about finances before marriage is not just about crunching numbers; it’s about aligning lifestyles, expectations, and goals. It ensures you and your partner understand each other’s aspirations and work together toward shared milestones.

Crucial financial aspects to discuss with your future life partner include:

1. Income and Spending Patterns

Discuss your individual financial behaviour, including your spending habits and income. Understanding the financial environment each of you grew up in can offer valuable insights into your current mindset and help you reach common ground.

2. Future Financial Goals

Determine whether your approach to savings is goal-oriented or simply about accumulating funds.

Discuss long- and short-term financial goals, including retirement, investments, and major life events. Review work benefits like EPF accounts, health and life insurance, and disability benefits. Align on where you both see yourselves in the next 5, 10, or 15 years and how you’ll get there together.

3. Debt

Fully disclose any existing loans, pending debts, or defaults. Transparency about financial obligations helps build trust and allows you to make informed financial decisions as a couple.

[Read: Should You Say “I Do” to the Personal Loan This Wedding Season?]

4. Sharing Responsibilities

Decide who will handle regular monthly expenses, like paying utility bills and managing budgets.

While the more experienced partner may initially take on the role of financial manager, this does not have to be a permanent arrangement. Discuss how responsibilities can be shared over time and agree on a system that works for both.

5. Bank Accounts

Determine whether you will have joint accounts to manage shared expenses or maintain separate accounts for personal needs. A combination of both could help balance financial independence and shared goals.

6. Estate Planning

Don’t wait until later in life to discuss how assets will be managed or transferred in the event of a serious illness or death. Talking about estate planning before marriage will help cultivate a sense of shared responsibility and make future discussions easier.

7. Insurance

Protect each other’s futures by reviewing and securing adequate health and life insurance coverage.

With healthcare costs in India rising by an annual rate of 14% and a staggering 62% of hospital expenses being paid out-of-pocket, comprehensive health coverage is essential. Unexpected medical emergencies can derail even the best financial plans.

Similarly, adequate term insurance ensures your future partner’s financial stability in case of unforeseen circumstances. By addressing insurance needs early, you safeguard your financial plans and build a more secure future together.

8. Financial Education

Discuss how you can make financial education a shared activity. You could attend workshops, read books, or follow blogs that simplify financial concepts such as investments.

Equipping yourselves with knowledge on topics like market trends, tax laws, and portfolio diversification will help you make informed decisions as a couple.

Tips for Talking Finances with Your Future Spouse

Discussing finances with your soon-to-be spouse can be daunting, especially if you're unsure where to start.

Here are some practical tips to make these conversations more productive and comfortable:

1. Set a Date and Time

Plan a specific date and time for your financial discussion, ensuring both of you are mentally prepared and focused.

Pair the conversation with something enjoyable, like a favourite meal, to create a relaxed and positive environment. This practice can become a regular ritual, such as a monthly financial check-in, that continues even after your wedding.

Regular discussions allow you to address challenges, review progress, and celebrate financial milestones together.

By dedicating consistent time to these talks, you’ll ensure open communication and mutual accountability in your financial journey.

2. Focus on One Topic at a Time

Avoid overwhelming or frustrating each other by tackling too many financial topics at once.

spending habits or short-term financial goals.

Taking a step-by-step approach will make the conversation more productive, help you clearly understand each other’s perspectives, and allow you to work collaboratively toward solutions and plans.

3. Share Your Experiences

Discuss your personal experiences with money; both the successes and the challenges. Share how your upbringing, financial achievements, and setbacks have shaped your attitudes toward money.

By opening up about your financial story, you can build trust and encourage your future spouse to share their experiences as well.

These discussions create a deeper understanding of each other’s financial beliefs and help build a stronger partnership as you work together toward shared goals.

4. Keep an Open Mind

Each of you comes into the relationship with unique money mindsets shaped by upbringing, culture, and environment.

Respect and empathise with your partner’s emotional experiences and perspectives related to finances. Keep the tone light, validate their feelings, and avoid being judgmental.

A willingness to listen and consider each other’s viewpoints will make the conversation more productive and help you find common ground.

5. Be Honest and Transparent

Honesty is key to building trust in your relationship. Be upfront about your income, spending habits, debts, and financial commitments.

Concealing financial issues, such as credit card debt or overspending, can lead to unnecessary stress and conflicts later.

By being transparent, you and your partner can create a plan to address potential issues together, ensuring a stronger financial foundation for your married life.

6. Plan for Shared Goals

Aligning your financial goals will help you work toward a shared future. Discuss both short-term goals, like vacations or purchasing a car, and long-term aspirations, such as buying a home or building a retirement fund.

Consider starting a joint Systematic Investment Plan (SIP) to contribute consistently toward these goals.

A financial advisor can help you choose mutual funds or other investment options suited to your combined risk appetite and aspirations.

To Conclude…

Financial conversations may feel uncomfortable at first, but they are a critical step toward a healthy, stable, and happy marriage.

Addressing topics like income, spending habits, debt, savings, and future goals ensures that both partners are aligned and working toward common milestones.

If you and your partner find it challenging to navigate financial decisions or identify what’s best for your financial future, don’t hesitate to seek professional guidance. A financial advisor can provide valuable insights and help you both create a balanced plan that works for your unique situation.

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Hiral Bhuta is a Investment Consultant & Principal Officer. She is a seasoned professional in the financial services industry, currently serving as an Investment Advisor and Financial Planner at PersonalFN. With her expertise, she plays a pivotal role as the Principal Officer appointed under SEBI's amended IA Regulation. Hiral holds distinguished certifications such as Certified Financial Planner (CFP) and NISM XA & XB, complemented by a post-graduate degree in commerce (M. Com). Her primary areas of focus encompass financial planning, investment advisory, and wealth management, where she leverages her knowledge and skills to provide tailored solutions to clients. With a cumulative experience spanning five years, Hiral brings a wealth of expertise and insight to her role at PersonalFN, ensuring clients receive expert guidance and support in navigating their financial goals.
 

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This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.