Merging Finances After the Wedding

Couples can spend months or even years planning their weddings. While planning a wedding requires lots of hard work, couples may also want to give some thought to life beyond their wedding day.

One of the more important matters couples must consider is how to manage their finances once they tie the knot. Discussing money can be a tricky issue, particularly when couples have long been accustomed to handling their own accounts and being responsible for their own income and expenditures. Bringing another party into the equation can complicate matters, particularly when one spouse may not have the full picture of the other's spending and saving habits. In fact, the financial resource Bankrate.com says some of the most common financial problems newly married couples encounter include overspending and managing debt.

When deciding how to merge their finances, couples can experiment to see what works best for them. It may take some trial and error before couples find a solution that works for them, but it's important that couples keep the lines of communication open and express a willingness to compromise with regard to managing money. The following are some additional tips for couples who want to make the transition to sharing finances go as smoothly as possible.

Start the Conversation Early

According to a recent poll by the National Foundation for Credit Counseling, more than two-thirds of engaged couples had negative attitudes about discussing money with their soon-to-be spouses, with 5 percent saying even having the conversation would cause them to call off the wedding. If money is causing this type of issue before the wedding, delaying the conversation until after tying the knot can be a big mistake. It's better for couples to begin financial discussions and start brainstorming long-term goals and plans as soon as they get engaged. Don't hide negative financial information from a prospective spouse. Being open and honest - even though it can be challenging - is the best way to proceed.

Deal with Debt

Hiding debt is a big mistake. Discuss debt early on and come up with a way to pay it off together. The experts say, like it or not, once you're married, your spouse's debts become your problem. His or her credit score can impact your ability to get credit as a couple. It's best to handle debt efficiently regardless of who is responsible for the debt.

Decide Who the Money Manager Will Be

One person may be better or more organized when it comes to paying bills. Whether you keep separate accounts or combine them, it is easier for one person to take the lead and manage the finances from month to month. Money can funnel into a joint account specifically established to pay bills. Decide who will be the point person. This can always be changed later.

Develop a Joint Budget

Not only do finances need to be merged, but so, too, do lifestyles. Couples must be on the same page regarding their spending habits and keep luxury or personal expenditures in check. Work out a budget and savings plan together. Managing finances is a conversation that newlyweds need to have as soon as possible.

There's an App for That!

If you need some help balancing your checkbook on your newly merged accounts or are looking to create an investment strategy for the future, as with most everything else, there's an app for that!

In fact, there are so many smartphone applications designed to help you track finances and your portfolio that it can become overwhelming. Here's a look at some of the most popular apps.

Mint

Designed by the creators of TurboTax and Quicken, Mint creates a personal budget based on your data. Sync your financial accounts, and Mint will offer customized tips to reduce spending. Easy-to-read graphs and charts help you track everything. Mint automatically sets up categories, but there are unlimited choices to personalize any budget. The downside: Like others including Goodbudget, Mint might not be ideal for someone looking to track more hands-on, since it tracks your spending after the fact rather than helping you plan ahead.

Acorns

Think of this app as the modern-day version of that jar of loose change everyone used to have. Acorns allows its users to round up on any purchase to the next highest dollar amount, then invest this additional money in a customized portfolio. Many investors are pleasantly surprised at how quickly these pennies turn into a real investment. You can also earn cash-back benefits at select retailers - a smart way to save. The downside: Acorns charges small fees, but that can erase any returns if your balance is low enough.

YNAB

Those looking for a more hands-on budgeting experience might consider YNAB, which is designed to help you plan rather than track past financial decisions. YNAB is an acronym for You Need a Budget, which is fitting. You'll follow a zero-based plan where every dollar is accounted for, based on information you provide about expenses, savings and goals. The downside: By design, YNAB requires a commitment to personal financial planning, but the idea of becoming more intentional with spending can help solve some users' cash woes.

Personal Capital

This wealth and spending tracker is primarily for investments, but the app also includes budgeting features to help control spending. Personal Capital connects to savings, checking and credit cards, along with all relevant accounts like 401(k), IRAs, loans and mortgages, then provides a helpful all-encompassing breakdown of your portfolio. You'll also get a snapshot of your monthly spending by category. The downside: With its focus on investments, Personal Capital might have features that would go unused by those simply focused on budgeting.