You’ve walked down the aisle, you’ve said your “I dos,” you may have even packed up boxes for your first PCS. How do you and your new spouse now marry your finances? While the answer is different for every couple, financial literacy and communication remain key ingredients for a successful financial marriage.
“The biggest thing I recommend is to have a plan,” Katy Stevick, a financial advisor and Army spouse, said. She recommends that couples share the plan with a source, be it a financial advisor or trusted family member. The last step, one that is so important and often forgotten, is to write the plan down to reflect and assess goals going forward.
Stevick, who was the 2018 Armed Forces Insurance Military Spouse of the Year for Ft. Bragg, feels passionate about the power of financial literacy. When you and your spouse are starting out, communication is key.
As a way to get started, Stevick recommends this advice for a successful financial marriage:
Couples should review their YTT – yesterday, today and tomorrow:
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Yesterday: What is your financial background? Do you have debts or student loans?
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Today: How are we managing cash flow as a couple? Who pays the bills? Where is the login information held for our accounts?
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Tomorrow: Where are we going as a couple and what are our goals?
When asked what couples should know about financial literacy, Stevick recommends an assessment of monthly spending as it relates to cash flow and taking the time to understand compound interest.
“Cash flow is a stumbling block for so many couples,” she said. She recommends budgeting and communicating clearly with your partner. “Compound interest is a topic that people should know about. It can work both positively and negatively, the compounding interest you accrue through saving or the compounding interest that builds on debt.”
Where can couples find resources for financial literacy to make their financial marriage work? Often, many bases offer financial classes and every military instillation has a financial counselor that couples can utilize. Stevick even recommends watching YouTube videos on the subject. She stressed that, ultimately, money is a tool that can help you and your spouse decide where you are going and where you want to be in the future.
“I went into this field because I wanted to help people. I wanted to teach people how to use these tools to make their lives better,” Stevick said.
When Stevick and her spouse were newly married, they met with a financial advisor to plan their goals. Eight years later, she’s seeing some of those plans come to fruition. They’ve recently purchased and restored a turn of the century farm house that they plan to turn into a bed and breakfast.
“Financial planning as a couple is such a great thing. It can help you accomplish your goals and dreams,” she said.
For more stories like this, including how to save, build retirement, navigate insurance and more, download our 2020 Military Money Guide.
