How should couples manage their finances?
MANILA, Philippines – Money issues can be a "marriage killer" if it’s not addressed by couples at an early stage.
Efren Cruz, a registered financial planner, said couples should be open to each other about their financial status before tying the knot, because this will help them in settling debts, if there are any.
“There should be a disclosure as to how much debt you have and bringing into this union. That’s important because you don’t want to get a surprise. And if you know the balance, you can probable help the person in trying to bring it down,” he said on ANC’s “On The Money.”
Cruz said couples should also decide on who will make financial decisions on investing and saving funds.
“Whoever has the discipline to control money should be the CFO [chief financial officer],” said Cruz.
It is also key for couples to set common goals in aspects of education, travel, entertainment, retirement, insurance, and medical needs.
After identifying goals, couples should decide how much they are going to contribute to the funds, which can be pooled or divided based on income.
“At least you have a pooled fund for your common goals…the pooled fund can be used for saving up for a house or buying a car,” said Cruz.
Investments tools are also useful when managing finances, but it depends on what the couple’s risk preference is.
Some couples may also consider entering a prenuptial agreement to protect their respective assets.
“It will be nice to discuss certain aspects with respect to the finances of the family before they actually finalize it,” Cruz said.