One of the biggest struggles for many marriages revolves around finances. Karl Eggerss was on CBS discussing items to consider when it comes to marriage and money.
Speaker 1: A solid marriage takes work and that includes your own relationship with money. Sharon Ko spoke with an advisor on ways to get your financial happily ever after.
Sharon Ko: People who are going to get married or planning to get married, what are some of your top tips?
Karl Eggerss: Finances are one of the biggest struggles in marriages because you think back to how this particular couple may have grown up, one maybe have grown up in a household that spent a lot, one may have grown up in a household that was saving a lot, and when you kind of put that together you could have some issues. So I really think discussing that in advance… And I think, for new couples getting married, having maybe some type of limit that you set for each other and say, “Hey, you know what? Underneath this amount we don’t really need to talk about it because we have things to buy, whether it’s for groceries or for the car or whatever. But if it’s a higher limit than X, we need to kind of discuss it and make sure we’re on the same page.” And I think that really gets the marriage off to a good start.
Sharon Ko: So do you recommend joint accounts?
Karl Eggerss: I do. I think when you have separate accounts you tend to not have that accountability. And some people may say, “That’s great, I don’t want that accountability.” But again, it can lead to big issues. So for me, I always recommend full transparency. And if you do have an individual account for whatever reason, then there’s no reason why you can’t have an app that shows all the accounts, whether they’re a joint account or whether they’re an individual account. Transparency and access, to me, is a good way to go.
Sharon Ko: Now for couples who are already married, I mean money is one of the leading causes of divorce so what are some of the problems to avoid? What are some of the things you can do to make sure that that isn’t the end?
Karl Eggerss: Well, some people have… I’ve seen stories where one of the people in the couple has racked up some credit card debt and the other one didn’t know about it. And they’re saying, “I’m on the hook for it.” Lot of laws, but Texas is a community property state, so you get assets, you get liabilities together, and you’re kind of on the hook for it. If somebody is racking up credit card debt behind the other’s back, there’s probably some bigger issues going on. But that’s why I do think talking about this in advance before getting married is huge because, again, two different backgrounds where you came from. But also, it’s a good time to kind of do, especially being at the beginning of the year, sit down and do this, even if it’s not a real tight budget, a pretty loose budget in terms of what you’re going to spend money on and not during the year. And that can really solve a lot of problems.