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<p><a href="https://www.businessinsider.com/category/milestone-moments" target="_blank" rel="noopener"></a></p><p><div type="image" title="young family" height="1414" width="2121" msid="75578811" hostid="261"></div></p><ul class="summary-list"><li>Starting a family is expensive: healthcare costs associated with childbirth, saving for future college expenses, adding another person to your health insurance, and even potentially upsizing your home. </li><li>The sooner you start financially planning to have a family, the easier the expenses will be to manage.</li><li>If you're thinking of having kids in the next five years, start by opening an HSA and evaluating your health insurance coverage, then considering expenses like childcare.</li><li><a href="https://www.businessinsider.com/personal-finance?hprecirc-bullet">Read more personal finance coverage »</a></li></ul><p>Starting a family can be scary ... and the costs surrounding that choice can be even scarier. </p><p>"Not only do you have the emotional challenges, but you also have the financial challenges," Howard Dvorkin, a CPA and chairman of <a href="https://www.debt.com/" target="_blank" rel="noopener">Debt.com</a>, tells Business Insider. "My advice is plan, plan, plan." </p><p>Those plans probably have an endless to-do list, but here's where Dvorkin says to start:</p><h2>1. Start saving for healthcare costs in a health <keyword id="25450" type="ORGANIZATION" weightage="60" keywordseo="savings">savings</keyword> account</h2><p><a href="https://www.businessinsider.com/how-much-does-it-cost-to-have-a-baby-2018-4" target="_blank" rel="noopener">In the United States, having a baby is a huge expense</a>, even if you have health insurance. The typical delivery without any complications will cost an average of $10,800 in medical expenses. The cost can vary from state to state, and the way the baby is delivered. </p><p>A <a href="https://www.businessinsider.com/personal-finance/what-is-a-health-savings-account-hsa-save-money" target="_blank" rel="noopener">health savings account, or HSA</a>, is a tax-advantaged savings account where funds can only be used for healthcare costs. The funds roll over from year to year, and can be invested to grow over time. An HSA is available to anyone with a high-deductible health insurance plan. </p><p>To set up an HSA, work with your employer's HR or payroll department — the money is deducted from your paycheck  before taxes. </p><h2>2. Get familiar with your health insurance coverage</h2><p>If you're planning on having a baby, re-think your health insurance. You may need to make changes before the baby arrives, and you'll need to plan for the expense of adding another person afterwards.</p><p>Not all insurance plans are equal. A high-deductible health insurance plan could leave you with medical bills and debt after the baby comes. If you can take advantage of the November open enrollment period, it could be a good idea to increase your health insurance coverage to a lower deductible plan. While a higher <a href="https://www.businessinsider.com/personal-finance/what-is-an-insurance-premium-definition-cost" target="_blank" rel="noopener">premium</a> might cost more each month, it could reduce your medical bills later. </p><p>"You have usually have 30 days from the time the baby is born to apply for the insurance," Dvorkin says. "But, that's going to be an extra charge. A single policy is going to be one price, but a [family plan] is going to be a lot more in some cases." Start budgeting for higher insurance costs — covering a family will be more pricey.</p><p>According to data from the <a href="https://www.healthaffairs.org/doi/full/10.1377/hlthaff.2018.1001?utm_campaign=HASU%3A+10-05-18+%28Copy%29&amp;utm_medium=email&amp;utm_content=Health+Affairs++October+Issue%3A+Social+Determinants%2C+Drug+++Device+Prices+++More%3B+2018+Costs+For+Employer-Sponsored+Family+Health+Coverage%3B+Aftermath+Of+A+School+Shooting&amp;utm_source=Newslettere=Newsletter" target="_blank" rel="noopener">Henry J. Kaiser Family Foundation Employer Health Benefits Survey</a>, the typical individual health insurance plan in 2018 cost a premium of $1,186, or $98 per month. A family plan, however, had a premium of $5,547 per year, or $462 per month. </p><h2>3. Start saving for college costs sooner than later</h2><p>When it comes to saving for college costs, "you have to start early," Dvorkin says. For most American families, a <a href="https://www.businessinsider.com/personal-finance/how-to-save-for-college-529-plan" target="_blank" rel="noopener">529 plan</a> is good option to start saving.</p><p>These state-sponsored investment accounts help parents, grandparents, or other family members and friends invest money to save for children's' future higher education costs <a href="https://www.businessinsider.com/personal-finance/529-plans-college-student-loans-technical-school-2020-4" target="_blank" rel="noopener">higher education costs, including college. </a></p><p>With the <a href="https://www.businessinsider.com/why-is-college-so-expensive-2018-4" target="_blank" rel="noopener">costs of college going up each year</a>, starting sooner rather than later is a good idea. The accounts can be opened as soon as the baby is born and has a Social Security number, or<a href="https://www.washingtonpost.com/business/2018/10/30/should-you-start-saving-college-even-before-your-child-is-born/" target="_blank" rel="noopener"> opened in a parent's name prior</a> to that, then naming the child as the beneficiary later. The sooner you start, the more time your child's college fund will have to grow. </p><h2>4. Consider how much space you'll need</h2><p>Before the baby comes, you may not have thought about space as an issue. But, as they start to grow older, your smaller home might not be feasible any longer. "If you have a one-bedroom apartment now, that's probably not going to work for very long," Dvorkin says. </p><p>The more space you need, the more you'll pay. According to <a href="https://www.apartmentlist.com/rentonomics/national-rent-data/" target="_blank" rel="noopener">Apartment List's May 2020 National Rent Report</a>, the average difference in the cost between renting a one-bedroom and a two-bedroom apartment in the US is $232 per month.</p><p>Or, you might feel like you want to get serious about <a href="https://www.businessinsider.com/personal-finance/how-to-buy-a-house-step-by-step-guide" target="_blank" rel="noopener">buying a home</a> — a financial move that could take a lot more planning and saving. </p><p>If you'll need a bigger home once the baby arrives, or by the time they're old enough to start school, start planning for the expenses now. </p><h2>5. Don't forget about childcare</h2><p>After the baby arrives, you won't be back in your normal routine for a while. Finding the right childcare for the baby before you return to work, deciding if one parent should stay home, and whether or not you can take parental leave should be top of mind. </p><p>Only 17% of Americans have access to paid maternity or paternity leave, according to the <a href="https://www.bls.gov/opub/ted/2019/access-to-paid-and-unpaid-family-leave-in-2018.htm" target="_blank" rel="noopener">Bureau of Labor Statistics</a>. If you're one of the many Americans who will need to take unpaid time off to have the baby and care for it (and yourself) in the weeks and months after the baby is born, you'll need to save to do so. </p><p>And, after you return to work, you'll likely face childcare costs. Childcare is a huge expense for many Americans, most of whom can't rely on family to help out. Before and after school daycare costs ranged from about $2,000 per year in Mississippi in 2018, to over $12,000 per year in New York in 2017, <a href="https://www.businessinsider.com/what-the-average-american-family-spends-on-childcare-2019-6" target="_blank" rel="noopener">Business Insider's Frank Olito reports</a>. For infants and children still too young for school, the costs could be greater.</p><p>You and your partner might also consider becoming a single-income household, with <a href="https://www.businessinsider.com/personal-finance/stay-at-home-parent-how-to-prepare-financially" target="_blank" rel="noopener">one partner staying home</a> with children. But, that will take <a href="https://www.businessinsider.com/personal-finance/do-i-need-a-financial-planner-money-help" target="_blank" rel="noopener">more financial planning</a> to work — including making sure that you have a full emergency fund, that you'll still have access health insurance, and that you'll have enough to both cover your expenses and save for retirement. </p><ul class="read-more-links"><li>More coverage from <a href="https://www.businessinsider.com/category/milestone-moments" target="_blank" rel="noopener">Milestone Moments</a></li><li><a href="https://www.businessinsider.com/how-to-invest-for-retirement-decades-before" target="_blank" rel="noopener">How to invest if you have 30 years before retirement</a></li><li><a href="https://www.businessinsider.com/parents-estate-plan-how-to-talk-about" target="_blank" rel="noopener">How to talk with your parents about their estate plan, even if they don't want to</a></li><li><a href="https://www.businessinsider.com/how-to-invest-buy-house-10-years-less" target="_blank" rel="noopener">How to invest if you want to buy a house in 10 years or less</a></li><li><a href="https://www.businessinsider.com/what-to-do-with-money-after-six-figures" target="_blank" rel="noopener">3 smart things to do with your money when you start making 6 figures</a></li></ul>Read the original article on <a href="https://www.businessinsider.com/save-money-to-have-children-2020-5">Business Insider</a>

How to save money if you're planning to have kids in the next 5 years

<p><a href="https://www.businessinsider.com/category/milestone-moments" target="_blank" rel="noopener"></a></p><h2><div type="image" title="Man Doing Yard Work" height="800" width="1067" msid="76856186" hostid="261"></div></h2><ul class="summary-list"><li><a href="https://www.businessinsider.com/personal-finance/how-to-buy-a-house-step-by-step-guide" target="_blank" rel="noopener">Owning a home</a> comes with its own set of unique challenges and benefits renters don't have. </li><li>As a <keyword id="1460894" type="PERSON" weightage="60" keywordseo="homeowner">homeowner</keyword>, you'll be responsible for all of your household's property taxes and repair expenses.</li><li>You may also pay more bills as a homeowner, as landlords can sometimes include some bills in a single monthly rent payment. </li><li>But, you can build equity to put towards a future home purchase and build wealth as a homeowner, which renters can't do. </li></ul><p>As a renter, you may not have had to think about the garbage bill or how to afford a new roof. But, as a homeowner, that responsibility — and expense — is up to you. </p><p>While owning comes with many more responsibilities than renting, it also comes with a unique set of benefits that renters can't get. </p><h2>1. You're responsible for repairs and expenses, and you'll need to save for them</h2><p>When something broke or leaked in your rented home, you simply put a call in to your landlord. But, when you own, it's not so simple. You're financially responsible for your space and everything in it, so if something leaks, breaks, or needs repair, you'll foot the bill. </p><p>When you go from renting to owning a home, it's important to keep a stash of savings for those possible repairs or maintenance call. After all, <a href="https://www.businessinsider.com/personal-finance/surprise-costs-owning-home-repairs-maintenance" target="_blank" rel="noopener">repairs can be costly</a>. Installing a new hot water heater could cost as much as $1,500, while an air conditioner repair could cost as much as $900, according to home repair site <a href="https://www.homeadvisor.com/r/true-cost-of-home-improvement/" target="_blank" rel="noopener">Home Advisor</a>.</p><p>Keeping a savings account with cash set aside for these expenses is an essential part of homeownership. Financial planner Lindsay Youngbauer previously told Business Insider that she recommends saving <a href="https://www.businessinsider.com/personal-finance/how-much-money-save-for-home-repair-2019-7" target="_blank" rel="noopener">1% to 4% of your home's value each year</a> for unexpected expenses — closer to 1% for newer homes more like 4% for older homes. Keeping your savings in a <a href="https://www.businessinsider.com/personal-finance/best-high-yield-savings-accounts-rates-right-now" target="_blank" rel="noopener">high-yield savings account</a> can help your repair fund keep growing. </p><h2>2. Everything is a separate bill</h2><p>At your rented home, you may have had some of your bills included with your rent, and paid for by your landlord, like water or trash removal. When you own your home, your expenses aren't all bundled together like they were in your rent.</p><p>Just getting garbage picked up each week can be costly — trash removal generally costs between $30 and $50 per month according to <a href="https://www.homeadvisor.com/cost/cleaning-services/remove-waste/" target="_blank" rel="noopener">Home Advisor</a>, depending on where you live. In some parts of the US, adding recycling pick-up service can be another extra expense. </p><p>Bills for water, gas, electricity, internet, and more will all be your responsibility, and separate, when you own a home. Your mortgage might be cheaper than what you paid in rent, but there are a lot of other expenses to budget and pay each month, too. Investigate the additional costs you'll pay in the area where you're looking to buy on top of your mortgage each month, and consider that in your monthly budgeting.</p><h2>3. Property tax increases can mean sudden spikes in your expenses</h2><p>When you buy a home, you're not only paying the mortgage — you're also responsible for property taxes. These taxes are based on your home's value, and your local and <a href="https://www.businessinsider.com/personal-finance/average-property-taxes-every-us-state" target="_blank" rel="noopener">state property tax</a> rates. Changes to your home or property tax rates could increase your monthly expenses.</p><p>If you make a big addition to your home, like adding another room or bathroom, your home's value could go up and raise your monthly tax bill. Similarly, tax rates in your area could increase, which could raise the amount you pay. According to data from <a href="https://www.attomdata.com/news/market-trends/attom-data-solutions-2018-property-tax-analysis/" target="_blank" rel="noopener">ATTOM Data Services</a>, 120 US cities saw property tax increases greater than 3% between 2018 and 2019.</p><p>While renting can also come with unexpected increases, quarterly or semi-annually tax bills can be a more jarring expense than an extra $100 per month added to your rent to account for tax changes.</p><h2>4. You have a chance to build equity you can use for a future home purchase</h2><p>With renting, you don't gain any value that could help you out in the future. But, as a homeowner, you could have a head start on buying your next home when you move in the future. </p><p>Writer Eric Rosenberg has owned <a href="https://www.businessinsider.com/personal-finance/lessons-learned-about-real-estate-after-owning-3-homes" target="_blank" rel="noopener">three homes since 2011</a>, and doesn't think he could own his current home in Ventura, California, without the equity he'd built in previous homes. "I give credit to both of my prior homes for the funds to afford my current one," Rosenberg writes. "Had I not made so much on my Denver and Portland homes, the one I have in California would have been out of reach."</p><p>While owning isn't a guarantee you'll be able to build significant wealth, if you make money on your first home's sale, you could use that to help with your next home's purchase. How much you make — or if you make anything at all — depends on the situation ... but there's no chance you'll be able to do that when renting.  </p><ul class="read-more-links"><li>Read more:</li><li><a href="https://www.businessinsider.com/personal-finance/strategies-dual-income-couples-manage-money-2020-6" target="_blank" rel="noopener">5 strategies any dual-income couple can use to manage their money</a></li><li><a href="https://www.businessinsider.com/personal-finance/save-money-to-have-children-2020-5" target="_blank" rel="noopener">How to save money if you're planning to have kids in the next 5 years</a></li><li><a href="https://www.businessinsider.com/personal-finance/how-to-invest-for-retirement-decades-before" target="_blank" rel="noopener">How to invest if you have 30 years before retirement</a></li><li><a href="https://www.businessinsider.com/personal-finance/what-to-do-with-money-after-six-figures" target="_blank" rel="noopener">3 smart things to do with your money when you start making 6 figures</a></li></ul>

4 things that change when you go from renting to owning a house

<div type="image" title="jovan johnson Cfp" height="3360" width="4480" msid="78542243" hostid="261"></div><ul class="summary-list"><li>Even if you have 30 or more years before retirement, it's possible that there are already some signs you won't be ready.</li><li>If you haven't started using your employer's 401(k), or are still making the same contribution you started making several years ago, you might need to make a change to get on track. </li><li>Similarly, if you find that your retirement income will be significantly less than what you're currently earning, it's worth adjusting your savings strategy now to maintain your lifestyle in the future.</li></ul><p>While it can be tough to think 30 years into the future, it's necessary for retirement planning. It takes years of saving, <keyword id="35175" type="ORGANIZATION" weightage="60" keywordseo="investing">investing</keyword>, and growth for retirement planning to work effectively and build a large enough savings to live well in retirement.</p><p>There's no set age to start thinking about retirement planning, but experts agree that <a href="https://www.businessinsider.com/personal-finance/retirement-advice-financial-planner-gives-clients-2020-7" target="_blank" rel="noopener">the sooner you start, the better</a>. Not only <a href="https://www.businessinsider.com/saving-at-25-vs-saving-at-35-2014-3" target="_blank" rel="noopener">will your money grow more</a>, but you'll also have less stress later on.</p><p>For that reason, thinking 30 years into the future is essential. Financial planner Jovan Johnson of <a href="https://pieceofwealthplanning.com/about-us/" target="_blank" rel="noopener">Piece of Wealth Planning</a> says that there are a few signs you'll want to watch out for on you savings journey — they might mean that you won't have enough savings for a comfortable retirement. </p><h2>You haven't started using your workplace's 401(k), or haven't updated it recently</h2><p>If your <a href="https://www.businessinsider.com/how-to-invest-in-a-401k-for-retirement" target="_blank" rel="noopener">employer offers a 401(k)</a>, it's definitely something to take advantage of sooner rather than later. These retirement accounts allows contributions pre-tax, which lowers your total taxable income. These accounts can also sometimes come with a match, where an <a href="https://www.businessinsider.com/personal-finance/401k-retirement-plan-benefits-taxes-employer-match-2019-5" target="_blank" rel="noopener">employer will essentially put free money towards your savings goals</a> up to a certain percentage of your contribution.</p><p>But just because you've started doesn't mean your job is done. While a 401(k) grows on its own, you will need to maintain the account over time. "A lot of people assume that contributing whatever [amount] their employer signed them up to the 401(k) with as a benefit will help them retire fine," Johnson says. But that's largely not the case. </p><p>While contributing a small percentage of your salary is a start, most financial planners agree that increasing your 401(k) contribution amount <a href="https://www.businessinsider.com/personal-finance/how-to-invest-in-a-401k-for-retirement" target="_blank" rel="noopener">each year or whenever you get a raise</a> is an essential part of the process. </p><p>If you haven't touched your 401(k)'s contribution amount, or checked to see that you're still getting a full match, you might not be saving enough to retire in 30 years. </p><h2>You won't be able to live the same lifestyle you have now</h2><p>A <keyword id="415826" type="PERSON" weightage="60" keywordseo="retirement-savings">retirement savings</keyword> account seems like a massive amount of money. But, considering that you may need to live on that amount for 20 to 30 years or more, it doesn't always work out to be that much each month. </p><p>Johnson says that he often shows his clients a projection of what income their savings habits will result in, and the amount they will have available to live on each month in the future. "I like to run the projection because there are a lot of things that people get blinded by," he says.</p><p>"Some people think that they will be OK living on 50% or 60% of what they make today," Johnson says. But that's often not realistic for many people. </p><p>In many cases, living on less means that people may not be able to maintain their current lifestyle in retirement. According to data from The New School's Schwartz Center for Economic Policy Analysis, about <a href="https://www.economicpolicyresearch.org/resource-library/research/downward-mobility-in-retirement" target="_blank" rel="noopener">40% of older US adults will face downward social mobility</a> in retirement, living on less income than they once did. </p><p>If the projections show that you're not on track to have enough to maintain your current lifestyle, you may need to do some extra work on your retirement planning.</p><h2>You haven't thought about how much retirement will really cost </h2><p>In Johnson's experience, people tend to underestimate how much they really need — and it's easy to do that.</p><p>"[People] think that retirement is going to be much cheaper, but it's actually other areas of costs that will come up to make it equivalent to what you spend today," he says. "It's the medical costs, the Medicare [expenses], and the traveling that picks up." </p><p>Data from Fidelity shows that the average couple will <a href="https://www.fidelity.com/viewpoints/personal-finance/plan-for-rising-health-care-costs" target="_blank" rel="noopener">spend about $295,000 on healthcare expenses</a> in retirement alone. For most retirees who use Medicare, there are quite a few expenses that suddenly aren't covered — things like dentist office visits, vision exams, and glasses all become extra expenses, <a href="https://www.businessinsider.com/personal-finance/healthcare-in-retirement-overlooked-costs-medicare-2019-4" target="_blank" rel="noopener">Business Insider's Tanza Loudenback reports</a>. Additionally, some retirees opt for extra coverage, buying supplemental health insurance or paying for prescription drug coverage from medicare through Social Security deductions. </p><p>And it's also worth budgeting for the things you want to do, like travel or spending money on family. Retirement planning isn't a time to underestimate your spending — it's  smarter to overestimate what you'll need than underestimate it.</p><ul class="read-more-links"><li style="list-style-type: none;"><ul class="read-more-links"><li>More coverage from <keyword id="9177069" type="UNKNOWN" weightage="60" keywordseo="milestone-moments">Milestone Moments</keyword>:</li><li><a href="https://www.businessinsider.com/personal-finance/signs-you-can-afford-second-home-2020-9" target="_blank" rel="noopener">4 signs you can afford a second home, according to a financial planner</a></li><li><a href="https://www.businessinsider.com/personal-finance/things-that-change-when-own-home-2020-7" target="_blank" rel="noopener">4 things that change when you go from renting to owning a house</a></li><li><a href="https://www.businessinsider.com/personal-finance/how-to-invest-for-retirement-decades-before" target="_blank" rel="noopener">How to invest if you have 30 years before retirement</a></li><li><a href="https://www.businessinsider.com/personal-finance/what-to-do-with-money-after-six-figures">3 smart things to do with your money when you start making 6 figure</a></li></ul></li></ul>

3 signs you won't be ready to retire in 30 years, according to a financial planner

<p><a href="https://www.businessinsider.com/category/milestone-moments" target="_blank" rel="noopener"></a></p><p><div type="image" title="wedding" height="1412" width="1883" msid="77378845" hostid="261"></div></p><ul class="summary-list"><li>Keeping your finances separate from your partner isn't uncommon — <a href="https://www.businessinsider.com/personal-finance/more-married-millennials-gen-xers-keep-finances-separate" target="_blank" rel="noopener">about 37% of married millennials keep separate accounts</a>, according to a survey by Business Insider and Morning Consult. </li><li>Keeping finances separate could foster harmony in your relationship if you have very different spending styles. </li><li>However, it could be easier to navigate <keyword id="25456" type="ORGANIZATION" weightage="60" keywordseo="financial-planning">financial planning</keyword>, goals, and everyday life if you're living from one account instead of two. </li><li>There's no one-size-fits-all approach — it's possible to combine it all, not combine finances at all, or have a <a href="https://www.businessinsider.com/financial-planner-advice-for-couples-combining-their-money-2016-11" target="_blank" rel="noopener">combination of both with separate and shared accounts</a>. </li></ul><p>If you're getting married, it's probably been a long time since your first money conversation as a couple.</p><p>But as you get more serious, the topic of <keyword id="9705969" type="UNKNOWN" weightage="60" keywordseo="combining-finances">combining finances</keyword> will likely come up. These days, it's common for couples to keep finances separate. A Business Insider and Morning Consult survey of about 2,000 Americans in 2019 found that about <a href="https://www.businessinsider.com/personal-finance/more-married-millennials-gen-xers-keep-finances-separate" target="_blank" rel="noopener">37% of millennials kept their finances separate</a> after marriage. </p><p>There's no reason you have to combine finances, even after tying the knot. For some couples, keeping finances separate is important, but it may not work for others. If you're trying to decide whether or not combining finances is right for you, here's what you should consider. </p><h2>The pros of combining finances </h2><h3>1. There's more transparency and accountability with money</h3><p>There's no room for hiding anything when accounts are combined. For some couples, this is a big benefit. </p><p>"When we put our finances together, that changed it all because I could see what she was spending, she could see what I was spending," <a href="https://www.hisandhermoney.com/podcast/how-this-couples-decision-to-combine-finances-is-helping-them-pay-off-debt-quicker/" target="_blank" rel="noopener">couple Josh and Elisha</a> told Tai and Talaat McNeely on "His and Her Money," a podcast that focuses on <keyword id="8402290" type="UNKNOWN" weightage="60" keywordseo="money-and-relationships">money and relationships</keyword>. </p><p>Josh and Elisha say that there was more accountability once their accounts were combined. "I had this card and I'd be like, 'If I slide this card right now, she's going to see it, so I'm not going to spend,' Josh said. The same became true for Elisha.</p><p>With combined accounts, it's easier to see what your partner is doing with their money, and use that knowledge to more effectively make decisions. </p><h3>2. It helps you talk about common goals </h3><p>"If people aren't merging finances, are they really talking about their life and plan together?" certified relationship therapist <a href="https://www.businessinsider.com/why-you-should-combine-finances-with-your-spouse-2016-11" target="_blank" rel="noopener">Michael McNulty</a> previously told Business Insider's Shana Lebowitz.</p><p>If you're not <a href="https://www.businessinsider.com/personal-finance/signs-youre-on-the-same-page-as-partner-about-money-2019-8" target="_blank" rel="noopener">on the same page about finances</a>, chances are that you're not on the same page about your goals either. Keeping one account can help you better <a href="https://www.businessinsider.com/personal-finance/make-a-spreadsheet-to-get-on-the-same-page-money-2019-8" target="_blank" rel="noopener">manage your common goals</a> as a couple, especially goals revolving around paying down debt or saving for a house. If you're not making headway on your goals separately, it might be worth trying to merge finances. </p><h3>3. It can create a sense of equality</h3><p>Most couples don't earn equally. In a 2019 survey conducted by Morning Consult and Business Insider of over 2,000 Americans, just 26% reported earning the same amount of income as their partner at the beginning of their relationship. </p><p>For some couples, this <a href="https://www.businessinsider.com/talk-about-money-spouse-earning-more-2019-2" target="_blank" rel="noopener">financial imbalance</a> can cause some stress. Having a joint account could help make joint finances feel more equal. </p><h2>The cons of combining finances</h2><h3>1. You're too accountable to someone else</h3><p>For some couples, having too much togetherness in finances isn't the right move.</p><p>Financial blogger Brandon of <a href="https://www.madfientist.com/">Mad Fientist</a> and his wife Jill say that keeping separate accounts has been essential to their marriage. "I think our marriage would've been doomed if we had everything in a joint account. I think that would've caused a lot of arguments," Jill said on an episode of <a href="https://www.madfientist.com/sane-fientist-interview/" target="_blank" rel="noopener">Brandon's podcast in 2017</a>. </p><p>The two have different spending habits, and opted for a partial solution to the joint account question. "We just decided to have one joint account that paid for all the bills and the mortgage and everything and keep our separate accounts," she said. </p><h3>2. You'll have to agree (or compromise) on all of your spending</h3><p>When <keyword id="2241793" type="PERSON" weightage="60" keywordseo="managing-money">managing money</keyword> as a couple, you'll have to agree — or agree to disagree — on everything from where the money is kept to how it's spent. </p><p>Purchases one person make could affect the other person, and it's likely that they'll have an opinion about it. For people with very different spending styles, like Jill and Brandon, this could be a problem.  </p><h3>3. Things could be more complicated if you separate in the future</h3><p>From shared investment accounts to common <a href="https://www.businessinsider.com/personal-finance/best-high-yield-savings-accounts-rates-right-now" target="_blank" rel="noopener">savings</a>, it could be more complicated to divide your financial assets if you find yourself facing divorce.</p><p>In part, it will depend on your state's rules. In some states with <a href="https://www.businessinsider.com/personal-finance/which-states-are-community-property-states-in-divorce" target="_blank" rel="noopener">community property laws</a>, accounts like retirement accounts and investments are considered community property and will be split upon divorce, regardless of who owns them, but in others, the division works differently.</p><p>There's no one solution that will work for everyone, and sharing <a href="https://www.businessinsider.com/personal-finance/best-online-banks" target="_blank" rel="noopener">a bank account</a> won't make a relationship any more or less solid. Talking about money openly within your relationship is more important than where it's kept. </p><ul class="read-more-links"><li>Read more from <a href="https://www.businessinsider.com/category/milestone-moments" target="_blank" rel="noopener">Milestone Moments</a>:</li><li><a href="https://www.businessinsider.com/personal-finance/things-that-change-when-own-home-2020-7" target="_blank" rel="noopener">4 things that change when you go from renting to owning a house</a></li><li><a href="https://www.businessinsider.com/personal-finance/strategies-dual-income-couples-manage-money-2020-6">5 strategies any dual-income couple can use to manage their money</a></li><li><a href="https://www.businessinsider.com/personal-finance/how-to-invest-for-retirement-decades-before" target="_blank" rel="noopener">How to invest if you have 30 years before retirement</a></li><li><a href="https://www.businessinsider.com/personal-finance/save-money-to-have-children-2020-5" target="_blank" rel="noopener">How to save money if you're planning to have kids in the next 5 years</a></li></ul>

3 reasons to combine your finances when you get married — and 3 reasons not to

<p><a href="https://www.businessinsider.com/category/milestone-moments"></a></p><p><div type="image" title="couple using laptop together" height="1414" width="1885" msid="76407794" hostid="261"></div></p><ul class="summary-list"><li>Managing a dual-income household can be tough, as sometimes one partner makes more, or there may be different opinions on how money should be spent. </li><li>Financial planner Marguerita Cheng says there are a few steps every couple with two incomes should take, and it starts with a conversation about money and your collective goals.</li><li>Once you and your partner have a clear vision on what you want, you can start to plan your individual goals and how you use your incomes.<a href="http://newsletter.businessinsider.com/join/4np/personal-finance"></a></li></ul><p>Relationships aren't easy, and managing two incomes can be just as hard.</p><p>In order to meet your goals — both collective money goals and individual goals — you'll have to start making sure that you and your partner are <a href="https://www.businessinsider.com/personal-finance/signs-youre-on-the-same-page-as-partner-about-money-2019-8" target="_blank" rel="noopener">on the same page</a> about your spending, saving, and plans.</p><p>Whether you regularly talk about money or are approaching it with your partner for the first time, there are a few key rules to follow. </p><h2>1. Set up an effective way to talk about money</h2><p>Talking about money with your partner may not come easily, but it's something you'll need to do to align your goals and create a financial plan that works for both of you. Some couples find "money dates" helpful as a way to sit down and talk finances, and others like a shared spreadsheet. While the way you talk about money is as unique as your relationship, the conversation has to happen for you to get on the same page.</p><p>"Sometimes when things are too vague, the silence is uncomfortable for people. And other times when things are too personal, that can be hard, too," says financial planner Marguerita Cheng of <a href="https://www.blueoceanglobalwealth.com/" target="_blank" rel="noopener">Blue Ocean Global Wealth</a> in Gaithersburg, Maryland. In her sessions, she generally starts the conversation by asking about how each person in the relationship how they view money, what goals they have individually, then focusing on what goals they have collectively. </p><p>From her side of the desk, Cheng says it's important that both people are heard and included in the conversation. "Some people don't want to know all the details, but that doesn't mean they don't want to be included," she says. She says making sure that both partners have an equitable voice is key. </p><h2>2. Have a common goal</h2><p>It might be helpful to talk about goals and priorities, and see where you both overlap and where you differ. Then, you can start to make concrete plans for those agreed-upon goals, and make compromises on the different goals.</p><p>While often easier said than done, Cheng says that most people are able to make agreements. If not, a financial planner could be an objective opinion on the best path forward. "It's not that the financial planner is taking sides, our role is to show them why. Then, it's the clients that have to determine their priorities."</p><h2>3. Know you can (and should) have individual goals, too</h2><p>When both people are making money, not everything in a couple has to be done jointly, Cheng says. In her opinion, even married couples should continue to invest independently and have their own goals within the context of their relationship.</p><p>"I think when people know their part they're planning as a couple, but they still have their identity as an individual investor, that's okay," Cheng says. It's not only important to avoid conflict over how to invest and how to plan for the future, but it can also help both earners feel a sense of autonomy. </p><p>"I never make the one client who is aggressive [with their investments] more conservative to suit the conservative client. And I don't make the client who's conservative aggressive to suit the aggressive client," Cheng says. "Then you have two people who didn't get what they want. So the solution is to plan these goals as a couple with the understanding that each one is an individual investor." </p><h2>4. If there's an income imbalance, address it</h2><p>According to an Insider and <keyword id="3372246" type="PERSON" weightage="60" keywordseo="Morning-Consult">Morning Consult</keyword> survey, 88% of millennials in long-term relationships have some sort of <a href="https://www.businessinsider.com/personal-finance/millennials-money-stress-relationships-income-imbalance" target="_blank" rel="noopener">financial imbalance.</a> Of that 88%, 66% said that money caused stress in their relationship. If there's an imbalance, it's important that it's addressed.  </p><p>Discussing how you can each cover expenses with your income is an important step to addressing it. Cheng suggests dividing expenses among your incomes proportionally if you like to keep your expenses and accounts separate. <br />"Maybe the higher-income-earning spouse pays the mortgage and a lower-earning spouse pays the utilities," she says. </p><p>No matter how large the disparity, both partners should have an equal opportunity to be included in the discussion and an equal chance to be involved in creating shared goals. </p><h2>5. Know how to effectively use your 2 incomes</h2><p>There's no one-size-fits-all solution for managing two incomes, Cheng says, but there are some general guidelines that work for most. </p><p>"Especially talking about rent or having or a mortgage, you want to make sure that you are not over-committing," Cheng says. Her rule of thumb is for couples making two incomes is, "don't rely on two incomes to cover your rent," she says. "Then you're not going to be able to go out and do the things that you want to do." It can also add more financial stress if one partner loses their job, or if costs like property taxes, insurance, or utility bills go up.</p><p>It's not possible for everyone to follow this rule, Cheng says. "In urban areas, costs of living can be high and you may not be able to get by on just one income for the rent." But, the closer you can stick to this rule, the better off you'll be for it. </p><ul class="read-more-links"><li>More coverage from <a href="https://www.businessinsider.com/category/milestone-moments" target="_blank" rel="noopener">Milestone Moments</a></li><li><a href="https://www.businessinsider.com/personal-finance/save-money-to-have-children-2020-5" target="_blank" rel="noopener">How to save money if you're planning to have kids in the next 5 years</a></li><li><a href="https://www.businessinsider.com/how-to-invest-for-retirement-decades-before" target="_blank" rel="noopener">How to invest if you have 30 years before retirement</a></li><li><a href="https://www.businessinsider.com/parents-estate-plan-how-to-talk-about" target="_blank" rel="noopener">How to talk with your parents about their estate plan, even if they don't want to</a></li><li><a href="https://www.businessinsider.com/how-to-invest-buy-house-10-years-less" target="_blank" rel="noopener">How to invest if you want to buy a house in 10 years or less</a></li><li><a href="https://www.businessinsider.com/what-to-do-with-money-after-six-figures" target="_blank" rel="noopener">3 smart things to do with your money when you start making 6 figures</a></li></ul>

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How to save money if you're planning to have kids in the next 5 years

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3 reasons to combine your finances when you get married — and 3 reasons not to

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