Info for Consumers
		Privacy
		Advice@American Express
		Tips, Tools &
		Information
		Consumer FAQs

This Week's Article

Advice Archive by date

Advice Archive by topic

Marriage presents many opportunities for exploring different points of view in creating a life partnership. While financial disagreements are commonly reported as a hurdle for couples, they don’t need to be insurmountable. If you are planning to wed, you can plan your joint finances using these tips:

• Communicate regularly. You and your mate can start by reflecting on your own money management styles. Are you a goal-oriented saver, a live-for-today spender, or something in-between? Discuss your feelings about money, and work out acceptable compromises. After you’re married, continue to communicate about money. A short meeting each week can help you update checking or other account balances, discuss income and expenses, monitor progress toward goals and resolve any disagreements.

• Manage your cash. Talking about your financial style will likely help you determine how to best mix and manage your cash as a couple. Some of the more common options include:

A joint checking account. This may spur a sense of partnership and keep each spouse aware of income and expenses – as long as you get together regularly to reconcile the account.

Separate checking accounts. For more independent types or those with different spending styles, you and your mate may want to continue handling your own cash and checking separately – as you did before the marriage – while agreeing on how much each person will contribute for common expenses.

Or, a combination. You may want to open a third, joint, account for common expenses and investments.

• Invest for your goals. Investing may be another area where you and your spouse differ. You may be comfortable with small-company stocks and considerable risk, for example, while he prefers savings accounts and CDs. A knowledgeable financial advisor can help you create an investment plan that melds your styles and makes sense for your situation.

Stocks of small companies generally may be subject to abrupt or erratic price movements, more so than stocks of larger companies. Some of these smaller companies may have fewer financial resources.

CDs are insured by the Federal Deposit Insurance Corporation (FDIC) and offer a fixed rate of return and fixed principal value.

• Keep some things separate. There are some aspects of your finances you’ll want to consider keeping separate. These include:

Retirement accounts. Your benefits department or financial advisor can tell you whether taking advantage of your own 401(k)s and/or IRAs may enable the two of you to set aside more tax-deferred retirement savings than you could in joint accounts.

Charge and credit accounts. Keeping a charge or credit card in your own name may help you p reserve your own, independent, credit record.

* This week’s column is provided by American Express Financial Advisors

July 5, 2001

Copyright (c) 2000 American Express Company. All Rights Reserved. Users of this site agree to be bound by the terms of the American Express Web Site Rules and Regulations. View Web Site Rules and Regulations and trademarks and Privacy Statement of American Express. See Corporate Entities and Important Disclosures for additional information about the American Express entities who offer products and services on americanexpress.com. American Express Brokerage is offered by American Express Financial Advisors Inc., Member NASD and SIPC. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker dealer.