How to manage finances as a married couple

Honesty is the best policy

The first step to managing finances in a marriage is to be honest with each other about your financial situations. This means being transparent about your income, debt, spending habits, and financial goals. Make it part of your routine to sit down together and discuss your shared finances. Talk about the state of your joint assets and any unforeseen expenses (or windfalls) that have come up recently. Make a point of doing this regularly, so both of you are fully informed and can avoid any surprises down the road.

Set long-term financial goals

Once you understand each other's finances, set financial goals (and limits) together. This could include short-term goals like saving for a new living room, or setting long-term goals like buying a house or planning for retirement. As you discuss how to manage finances in a marriage, you may wonder: How should married couples handle finances or how should bills be split in a marriage?

The answers will depend on your shared priorities, but starting with clear short-term and long-term objectives is crucial. By focusing on long-term goals for married couples—like buying a home or establishing an emergency fund—you can create financial goals that reflect both your individual needs and your collective vision. Setting financial goals together will help you work toward a common objective and keep you both motivated to achieve those goals.

Create a household budget

It’s important to know where your money’s coming from and where it’s going every month, especially if you’re new to working with a combined income. Creating a budget can help and is a critical part of managing finances in a marriage. It not only helps you avoid going into debt, but if you are in debt, it can be a great help in getting out of it.

Make a list of your combined monthly income and expenses, including bills, groceries, entertainment, student loans, and any other debt payments. A budget will help you track your income and expenses, identify areas where you can cut back, and plan for future expenses. Just don’t forget to designate a portion of your combined income toward savings and emergency funds. In case one (or both of you) is ever laid off or is faced with unforeseen medical expenses, experts suggest having at least three to six months’ worth of living expenses set aside.¹

Once you set your budget, it’s important to stick to it. However, it isn’t set in stone. Review your budget regularly and adjust it as needed.

How should bills be split in a marriage?

How you split bills as a young married couple can vary depending on your income levels, expenses, and financial goals. Some couples choose an equal 50/50 split, while others prefer to divide costs based on each partner’s earnings. It’s important to maintain open communication about your approach and reassess regularly if one person’s finances change. Finding the right arrangement can help you both feel comfortable and supported.

Should marriage be 50/50 financially?

The key is finding a balance that feels fair to both spouses and aligns with your long-term financial goals. You may also consider how shared expenses factor into budgeting, saving, and investing together. Ultimately, the best approach is one that supports transparency and cooperation.

Establish individual checking accounts

While joint bank accounts are common in marriages, it's also important to maintain separate bank accounts. This is called the “yours, mine, ours” approach, in which you each have some autonomy over an agreed-upon portion. Keeping an account for yourself allows you a bit of financial freedom and helps you organize your spending.

Is it normal for married couples to keep finances separate?

Many married couples do keep some or all of their finances separate, which can help maintain autonomy and avoid conflicts over spending habits. This approach can be beneficial if you have different financial priorities or personal expenses you’d prefer not to merge. The important thing is to ensure that both spouses are aware of each other’s financial commitments and that they continue to have regular money discussions. Ultimately, what’s considered “normal” varies among couples, so find the method that works best for you.

Set a "let’s talk" spending threshold

You don’t need to have a conversation before one of you spends $20 on lunch. But a $500 purchase? Or $1,000? It would probably be best to discuss that first. Figure out what the “let’s talk” amount is for you as a couple and agree that neither of you will ever be left out if the other makes a big purchase.

Be aware of your spouse’s debt

When you apply for a loan as a married couple, banks assess both of your credit scores. If one person is carrying significant debt, your application could be denied. Be aware of both your credit scores and think through how you can look your best on an application.

Related: Debt management

Purchase life insurance

It’s easy to dismiss life insurance as something you won’t need until you’re older, but buying life insurance when you’re young may end up costing you less in the long run. In the unlikely event that one of you passes away, the other will need to continue without the support system you’ve established together. So don’t wait—the average annual premium of a life insurance policy increases dramatically as you get older.

When deciding how to manage finances in a marriage, life insurance can be a fundamental part of your long-term financial plan. You might consider a joint policy that covers both spouses under a single contract, or you could each purchase individual policies based on your unique needs. Additionally, there are two main types of life insurance: term life insurance (which provides coverage for a set period) and permanent life insurance (which can last a lifetime and typically builds cash value). By discussing your goals with a financial professional, you can determine which option—or combination of policies—makes the most sense for you and your spouse.

Don’t feel pressured to buy a home right away

Real estate is an asset (and an investment goal) that many young married couples work toward. Speak to a real estate expert in your area if buying a home is an important milestone for you and your spouse. Be realistic about when and what you can buy. If you live in an expensive housing market, buying a home may not be realistic for a while. So if renting makes the most sense on a cost level, rent—but contribute to an investment fund that builds equity over time, just as mortgage payments would.

Prepare for retirement before you prepare for your future children’s education

Education loans may be available, but retirement loans are not. A commonly cited guideline is to invest around 15% of your income in retirement, though exact needs vary by couple. Online calculators can help you determine how much you’ll need to comfortably stop working. Explore your 401(k) and IRA options, and consider taking advantage of any employer match. Ultimately, make certain you’re meeting your monthly retirement contribution goals so that saving for a future child’s education does not come at the expense of your own financial security in retirement.

Start saving for your children’s education

If you plan to have children, you should start preparing for college as early as possible. Look into your state’s 529 college savings plan to see if it offers additional tax benefits, or investigate alternative investment vehicles that charge low fees. The earlier you start saving, even just a little bit at a time, the less financial strain you'll face when the moment arrives.

In addition to 529 plans, you could also explore cash value life insurance policies^* or other investment accounts with low fees. Diversifying your savings strategies can help you balance risk and ensure that you’re meeting both short- and long-term goals for your family’s finances

Related: How to save for your child’s college while also saving for retirement

Decide how to approach family and money

If a close friend or a family member approaches you for a personal loan, how will you respond? You and your partner should agree on a policy, so neither of you ever feels that a friend or a family member is being treated unfairly when money is involved.

Prepare and sign a will

Ideally, this should be done early in your marriage, but it becomes more important as time goes on. By the time you’re a decade into marriage, you should have a healthcare power of attorney granted to someone, and your will should be well organized and updated regularly. According to Caring’s 2025 Wills and Estate Planning Study, the amount of Americans with estate planning documents has declined since 2022, when more than 50% of respondents said that estate planning somewhat or very important to them. Now, more than 50% of respondents don’t have a will at all.² However, you need to make it a priority to organize your assets and create a will for the ease and benefit of your loved ones.

While a will is a critical part of estate planning, you may also want to explore other legal tools such as trusts, beneficiary designations, and proper titling of assets. By setting up these arrangements, you ensure that your property and finances will be handled according to your wishes, easing the burden on your loved ones. Consider consulting an estate planning attorney to help you navigate these decisions and keep your documents updated, especially after major life changes like having children or purchasing a home.

Seek help when needed

If you are struggling with managing your finances or have significant debt, seek professional help. A financial professional can help you develop a financial strategy and create a budget. Some can even help manage your investments. Perhaps most importantly, a financial professional can provide you with valuable guidance on how to manage your finances and work toward achieving your financial goals.

Asking your parents for marriage and financial advice can help as well, but your parents’ money approach doesn’t have to be your money approach. Maybe only one of your parents handled the family finances. Maybe your parents seldom discussed money. You and your spouse should approach your shared finances in your own way and discover what works best for you.

Remember that managing finances in marriage is a partnership. Working together will not only help you achieve your financial goals, but it will also help strengthen your relationship even further as you build your lives together.

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¹Burnette, Margarette, “Emergency Fund Calculator: How Much Will Protect You?” April 11, 2025. https://www.nerdwallet.com/article/banking/emergency-fund-calculator

²Lurie, Victoria, “2025 Wills and Estate Planning Study,” Match 31, 2025. https://www.caring.com/resources/wills-survey/

*Accessing the policy’s cash value will reduce the policy’s death benefit and available cash surrender value.