Thursday, February 22, 2018
Business

Forricheror forpoorer

It's peak wedding season, and many weddings these days are over-the-top when it comes to how much is spent. The average U.S. wedding costs around $25,000, not including the honeymoon.

Meanwhile, the topic of how the couple will manage a lifetime of spending, saving and surviving financially is rarely discussed. A recent poll found that 68 percent of engaged couples had a negative attitude about discussing money with each other, according to the National Foundation for Credit Counseling.

What is it they fear revealing? Large student loans or a bad credit score? The truth needs to come out before tying the knot, because afterward the maxed-out credit cards or the addictive shopping habit will probably no longer be a secret. A spender married to a saver could be a doomed combination.

In fact, with money one of the major issues couples fight about and one of the main reasons for divorce, it's crucial that couples delve into the subject to avoid a disaster later.

Shelley Cabangon, a senior wealth planner at PNC Wealth Management in Palm Beach, says everyone entering a marriage should have a talk well before the wedding day about how they will handle finances.

Cabangon boils it down to these five issues:

1. "MY" versus "OUR" money: Will we have joint or separate accounts? Will we consolidate accounts with the same banking partner?

2. Debt: How much debt am I bringing to the marriage, and how will we manage it?

3. Who's in charge of budgeting and paying the bills? Is there a CFO of the house, or is it a partnership?

4. Spending: Are our spending priorities in line? Is there mutual or individual approval for spending?

5. The Future: Are we prepared to plan for retirement together? (e.g. 401(k) plans, Roth IRAs, etc.)

"It is not necessarily an easy conversation to have right off the bat," Cabangon said. "You can't be having it shortly before the wedding.

One way to solve the My versus Our money issue is to have a joint account for shared expenses, such as the mortgage or rent, electric bill, car payments and food. Individuals could also have separate accounts as well to retain some autonomy.

Don't automatically assume your future spouse feels the same way you do. One party might consider a fancy car a necessity, while the other is content with basic transportation.

Assets and liabilities need to be discussed. How much does each person have in savings?

If children from a previous marriage are involved, questions about who will pay their expenses need to be ironed out.

Attitudes matter, too, especially about retirement. Does one person plan to never retire, while the other dreams of retiring at 65 and traveling the world? What about saving for children's college costs, or vacations?

Comments
Tampa Bay area’s population projected to grow to 3.1 million this year

Tampa Bay area’s population projected to grow to 3.1 million this year

TAMPA — The Tampa Bay area’s population, already the largest of any metropolitan area in the state, is projected to grow from 3 million last year to 3.1 million this year, and to 3.3 million over the next five years.That growth is expected to bring c...
Updated: 3 hours ago
Work finally starts on downtown St. Petersburg’s newest hotel

Work finally starts on downtown St. Petersburg’s newest hotel

ST. PETERSBURG — Nearly a decade after it was first proposed, a new boutique hotel in downtown St. Petersburg is finally under construction.Workers are preparing the foundation of the Galaxy, an 11-story, 92-room hotel at Third Avenue N and First Str...
Updated: 4 hours ago
Outback Steakhouse owner Bloomin’ Brands beats Wall Street forecasts

Outback Steakhouse owner Bloomin’ Brands beats Wall Street forecasts

TAMPA — Bloomin’ Brands this morning beat Wall Street expectations in reporting fourth-quarter net income of $16.4 million, after reporting a loss in the same period a year earlier. The Tampa-based restaurant chain group — which in...
Updated: 5 hours ago
Note to readers: About those annoying popups on your phones

Note to readers: About those annoying popups on your phones

Dear readers, I hope that you are able to see this and that a popup saying you’ve won a gift card hasn’t taken over your phone. We have heard from many of you that these popups are preventing you from reading our news coverage.We hate them as much as...
Updated: 5 hours ago
Saving trees a passion for some St. Petersburg neighborhood leaders

Saving trees a passion for some St. Petersburg neighborhood leaders

ST. PETERSBURGBeth Connor, a longtime neighborhood environmental advocate, is alarmed at what she views as the destruction of the city’s trees in the name of development.She points to at least three properties that have been scraped of trees in recen...
Published: 02/22/18
This week food fests celebrate collard greens and Jewish foods

This week food fests celebrate collard greens and Jewish foods

FIELD OF GREEN: COLLARD FESTOn Saturday you can devote your whole day to the beauty of collard greens. Well, that’s the jumping off point. Collards are the "central ingredient" at the Tampa Bay Collard Green Festival at St. Petersburg’s Historic Deuc...
Updated: 5 hours ago
CareerSource jobs chief Edward Peachey could soon be out of work

CareerSource jobs chief Edward Peachey could soon be out of work

CLEARWATER — The heads of the Pinellas and Hillsborough jobs boards will hold emergency meetings in the coming days to consider firing president and CEO Edward Peachey. Jack Geller, board chairman of CareerSource Pinellas, and Dick Peck, chair...
Updated: 10 hours ago
Hillsborough commissioners ask CareerSource chief to step down or be fired

Hillsborough commissioners ask CareerSource chief to step down or be fired

TAMPA –– Hillsborough County commissioners voted Wednesday to ask embattled jobs center leader Ed Peachey to either resign or face termination over concerns the agency inflated job placement numbers with the state. Chairwoman Sandy Murman said commis...
Published: 02/21/18
St. Pete's World Liquors sign will live on at new home

St. Pete's World Liquors sign will live on at new home

A local landmark for a half century isn't coming down for good.
Published: 02/21/18
Investor calls for Bloomin’ Brands to let Outback Steakhouse stand alone

Investor calls for Bloomin’ Brands to let Outback Steakhouse stand alone

TAMPA — A second activist investor is calling for a big shake-up at Bloomin’ Brands Inc. In a letter to Bloomin’s CEO, Barington Capital Group, a New York-based investment firm, urged the Tampa-based restaurant conglomerate to let ...
Published: 02/21/18