Simone Biles And Jonathan Owens have released their engagement photos, and while the occasion is sweet, a real conversation starter is if the newly engaged couple have talked money. It is one of the top two reasons why couples fight — the other is sex.
The former Olympic gymnast and pro football player are two athletes who, from the looks of it, have their wedding plans all sorted out. But, hopefully, the two are making financial plans a well. Bilesreportedly is worth $16 million. And Owens, whose net worth seems hard to pin down, reputedly is worth upwards of $500,000.
Marriage and Money
A common mistake people make in getting married is that they prepare for the day but not for their financial future throughout their marriage.
According to The Wedding Report, a wedding market research firm, the average 2022 engaged couple will spend about $24,300 on their wedding.
Such a debt-racking decision is why wealth psychology expert and podcast host of “Breaking the Money Silence” Kathleen Burns Kingsbury told CNBC that the “money talk” should be addressed before marriage.
“Your money history is right there in the room with you,” Kingsbury said. “It’s an opportunity to have a ‘money conversation’ and decide what you’re going to do.”
According to Kingsbury, a series of three 30-minute financial meetings is suggested for couples. The first 30 minutes is a conversation about how each person handles money, their financial upbringing, and their logistical understanding of financing capital.
The second part of the conversation is to listen to the other person’s beliefs about how money should be used and their history without judgment.
The last meeting is when couples discuss what they like about each other’s approaches to money.
“If you have a better relationship with money in a partnership, you often have a higher level of intimacy as well,” Kingsbury said.
CNBC also reported that consulting an expert in financial planning is beneficial to not just short-term marital solutions like the honeymoon and paying off the wedding but creating strategies for building cash reserves and financial protection.
Couples should even talk about their retirement goals before walking down the aisle. Many experts say planning for retirement should ideally begin when you are in your 20s. And it is best if you and your potential mate are on the same page about retirement savings.
The Prenup Question
Part of the money talk that couples should have is about a prenuptial agreement, according to Katie Gampietro Burke, CFP at Wealth by Empowerment
“Unfortunately, most marriages end in divorce. So why not have that conversation when you can have the conversation? Not necessarily who’s going to get the house, but the financial side of things,” she told Insider.
After the ‘I Dos’
Discussions — not arguments — about finances should become a regular thing for couples.
“Just like being married, money and finances are an ongoing process, not a one-time event,” Jayne Hladio, senior vice president of U.S. Bank Wealth Management, tells Mic. Topics that should be on a rotating table include major purchases, handing of debt, bill paying, savings goals, and estate planning.