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The following financial
compatibility quiz can help couples who are planning to tie
the knot to discuss financial issues.
Answer "true" or "false" to each of the following
statements:
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We are aware of and
comfortable with each other's money personalities.
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We have discussed our
short- and long-term financial goals.
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My spouse and I are
well-versed in personal finance.
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My spouse and I have
discussed a plan to structure our finances.
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We have planned for the
impact marriage will have on our taxes.
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We have decided how to
divide up the money management tasks.
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We understand the
importance of establishing a realistic budget.
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I know my future spouse's
investment personality and risk tolerance.
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I know how much debt my
spouse is bringing into our marriage.
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We have made a commitment
to discuss money regularly.
Scoring
>8
True: You and your partner are on your way to a
stable financial future. However,
it's still a good idea to
continue to communicate and work together toward your
financial goals.
5-7 True: You and your
partner need to devote more time to planning your financial
future together. With a little more work, you can achieve
financial compatibility.
<5
True: You and your partner do need to make a
sincere commitment to discuss financial issues and consider
meeting with an experienced financial planner who can help
you start your marriage on firm financial footing.
Read on to learn more about the importance of each question:
1. We
are aware of and comfortable with each other's money
personalities.
Some of us grew up in families where our parents
watched every dime; in other families money flowed easily.
Some people measure self worth in terms of money and
possessions. Some people are natural spenders, others are
savers. Understanding your future spouse's background and
values can help avert problems down the road.
2. We have discussed our short and
long-term financial goals.
Setting financial goals helps you develop
priorities and define the type of lifestyle you will lead.
Break down your goals into manageable pieces. If you want to
buy a house in five years, determine how much you need to
save monthly to meet the down payment.
3. My spouse and I are well versed in personal finance.
Parents and schools rarely provide training in personal
finance. Work together to develop your financial knowledge
and build confidence by taking a course, meeting with a
financial planner or purchasing a reputable book.
4. My spouse and I have discussed a plan to structure our
finances.
Will you pool all your resources into joint accounts,
maintain separate accounts or devise some combination of the
two? There is no right or wrong answer; the key is to come
up with a plan that works for you both.
5. We have planned for the impact that marriage will have on
our taxes.
The marriage "penalty" means that you and your spouse
together are likely to pay more taxes than you each did as
singles. Check with a CPA or tax professional to ensure that
you are prepared to meet your tax responsibilities and aware
of any tax law changes in this area.
6. We have decided how to divide the money management tasks.
Decide who will be responsible for balancing the checkbook,
filing taxes and tracking investments, or better yet, set up
a plan for rotating these and other financial tasks.
7. We understand the importance of establishing a realistic
budget.
Couples without a budget tend to live and spend from
day-to-day. A valuable budget
helps you save regularly, use
income wisely and avoid misunderstandings about how money is
spent.
8. I know my future spouse's investment personality and risk
tolerance.
Investing styles are different, ranging from conservative to
risky. Take the time to arrive at a level of risk where you
both feel comfortable.
9. I know how much debt my spouse is bringing into our
relationship.
Couples must enter marriage knowing how much debt they each
carry and how it will be paid.
10. We have made a commitment to
discuss money regularly.
Differences are inevitable. How you handle them is the
important thing. CPAs agree that ongoing, honest
communication is the key to a lifetime of financial
compatibility.
Brought to you by the North Carolina
Association of Certified Public Accountants in cooperation with the AICPA.
©2007 The American Institute of Certified Public Accountants;
www.360financialliteracy.org
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