How to Manage Dual Incomes?

My son is planning on getting married in the near future and I wanted to give him some advise that would not seem like I was meddling. I told him that money was in my opinion one of the top problems a couple would fight about. It was one of the arguments that My husband I had at the beginning of our marriage because we were young and didn't discuss money at that time. I found that money often was the spark that ignited bickering about ambitions, fears for the future and the inevitable power struggle. Communication was vital. Talking about how we planned to earn, spend and save money was easier when we agreed on our priorities.

Couples benefit from forming and adhering to a spending plan that includes discussion about making major purchases. I remember one time during our earlier years of marriage my husband came home with a car, open the door and showed it to me, one major argument, he did not tell me that he wanted a new truck and it was not something that I had figured for in our budget. The argument could have been avoided if we had just sat down and discussed why he wanted the truck. The couple in a two-income household should make the time to design a plan that will maximize the benefits of the second income. For lower wage earners, the costs of child care, income taxes, and work-related expenses may outweigh the income benefits of a second job. Even for high wage earners, without proper planning the maximum benefit may not be realized, and in some instances, the additional salary can be a tax liability.

I told him to jointly decide if the paychecks will be combined into one checking account, or maintained in separate individual checking accounts. A designated amount from each paycheck could be deposited into a separate household account. They as a couple will need to decide who will pay the bills and maintain the account. Each partner must have a personal allowance. They have to agree on the amount and make the money available routinely. They need to also agree upon a savings and investment plan. The new major purchases should be dealt with by both of them, not one making the decision and the other following along. Regardless of who the user will be, avoid debt levels that will demand the full earning potential of both wage earners. If they hold jointly a credit card account, they are both responsible for any debts incurred on the account.