There's no denying it: wedding season is in full bloom. But if you want your own "happily ever after" in the near future, you may want to check your personal finances first. According to a recent poll from TD Canada Trust, 77% of Canadians say they would not marry someone who was bad at managing their personal finances or if they held excessive debt.
TD Canada Trust offers advice to Canadians in relationships who are ready to take the next step:
• Honesty is the best policy: Being open and honest is an important part of establishing a healthy financial foundation. If you're saving for a down payment on a home but your partner is thinking about their next spending spree, you might be headed for some challenges. Although it can be difficult to open up about your finances, doing so can prevent big headaches down the road.
• Create a plan, together: Once you've discussed what both parties bring to the table financially, make a plan of action, together. There can be benefits to pooling your assets, like helping each other service existing debts or lowering your household's overall tax burden. Speak with a financial advisor who can help you create a tailored plan that works for both of you.
• Retain some financial independence: While it can be worthwhile to combine finances, it is important to have individual financial goals outside of those you have as a couple. For instance, having a credit card and bills in your own name that you pay back in full and on time will help build your personal credit rating. Similarly, saving regularly through contributions from your paycheque into a Tax Free Savings Account (TFSA) or your RRSP will help you build a healthy nest egg for your future together.
