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Press Release
Tuesday, July 17, 2007
For Richer or Poorer:
CCCS of Greater Dallas Offers Tips for Merging Finances
Dallas - July 16, 2007 For Richer or Poorer. Those four little words have been read time and again in wedding ceremonies across the country. According to U.S. Department of Health and Human Services, about 2.2 million Americans say this phrase, or at least get married each year and 36% of them occurred in the months of June, July and August.
For some, they are words of fear, doubt and insecurity---for others a sign of relief. With wedding season at its peak, Consumer Credit Counseling Service of Greater Dallas (CCCS Dallas) offers financial tips for newlyweds and those looking to create or renew their financial vows.
Most people expect to be more financially stable after tying the knot. But a double income can quickly disappear with double expenses. Marriage can mean the beginning of families, the acquisition of possessions, and more importantly the complexity of merging of two individuals' finances, as well as their attitudes toward spending and saving.
What if the checkbook is in the red, the presents aren't making up for that huge credit card bill from the honeymoon, and mortgage payments on that new house in the burbs are only increasing?
"Most couples think about their wedding budget and neglect preparing for their financial future together. Merging finances takes careful consideration and planning. Preparing for finances early by using these tips from CCCS Dallas will help couples start of their marriage right," said Gail Cunningham, vice president of business relations for CCCS Dallas.
CCCS Dallas' financial tips for merging finances:
Create a budget. Work up a monthly budget and stick to it. Commit to reviewing your financial activity once each week. See how much money remains in your checking account, which bills are due that week, and what expenses remain before your next payday. A plan simply allows you to be in charge of how you spend your money. Become familiar with all aspects of your credit. Knowing your balances, interest rates, credit limits and monthly due dates are the basics here.
Establish spending limits. Choose an amount of money that is reasonable to spend each month. This can be a nominal amount, but it will allow each person the freedom to make a financial decision without having to hide it from the other person.
Get your credit report. Thanks to legislation that went into effect in 2005, we can now receive one free credit report every twelve months from each of the three credit bureaus. You may want to order all at once, or stagger them, depending upon your financial objectives for the year. To start the process, go to www.annualcreditreport.com. You can also order your credit score through these sites, but there is a small fee. The credit score is a compilation of weighted factors that come together to predict risk, the likelihood that you will or will not pay your bills in a responsible manner, and many organizations gather this information before they loan you money. This is important when purchasing large ticket items such as a car or house and is sometimes factored in when you are being considered for a job.
Organize financial clutter. Designate an area where all of your financial records are housed. Find a place you can find your bills, bank statements and policies without searching.
According to the IRS Web site, here's what you need to keep:
Documents related to your income such as W-2's, 1099's, bank statements, brokerage statements and forms K-1.
Items associated with expenses, sales slips, invoices, receipts, cancelled checks or other proof of payments.
For your home, keep the closing statements, purchase and sales invoices, proof of payment, insurance records, and form 2119 if you sold a home prior to 1998.
Regarding investments, brokerage statements, mutual fund statements, and forms 1099 and 2439 should be kept.
Think about children. The government recently calculated the cost of raising a child from birth to age 18, and came up with the amount of $160,140 for a middle class family. That's $8,896 per year, $741 per month, $171 per week, $24 per day, or $1 for each hour.
Care for your family. According to a recent study for Putnam Investments, about one in five workers 45 year of age and older provides financial support to a parent. Further, a fair portion of that age group is also providing support to a grown child. Almost one-third are paying the rent or providing housing for a child over the age of 25. Caring for parents and children at the same time gave this group the title of "the sandwich generation". Be sure to factor these expenses in if you are or planning to care for a family member in the near future.
Get help before financial stress adversely affects your marriage. Court records show that money struggles are a leading contributor to divorce. Don't let this happen to you.
About CCCS of Greater Dallas
Consumer Credit Counseling Service of Greater Dallas, Inc. is a non-profit, community based credit and debt management service. Established in 1974, CCCS Dallas and its affiliate offices provide financial education and counseling to consumers in-person, by phone, or Internet through their 24 locations in four states. CCCS Dallas is a member of the National Foundation for Credit Counseling (NFCC), the nation's largest and longest serving national non-profit credit counseling network. For more information, visit www.cccs.net.
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