One Year into Marriage: Our Actual and Future Plans for "Couples' Finances"

2022.08.02 published

Money Matters for Couples

After getting married, how do couples handle "money" matters?

I've been married for about a year now.

At first, talking about money was kind of difficult to initiate, so we just went with the flow. However, as we lived together, we started discussing our concerns, and now things seem to be settling according to both of our hopes.

In this article, I’ll summarize what my husband and I have actually done, what we’ve discussed, and what we’re thinking of doing regarding money, aimed at those who have just gotten married or those who have been married for a while but haven't really made any financial arrangements.

I hope this can serve as a reference for someone.

Should We Have an Allowance System?

First, the biggest concern when getting married is whether to have an "allowance system."

I had a vague image of an "allowance system" when I thought of marriage, so I assumed we would go that route after getting married. (It seems most straightforward to manage collectively and have each partner on an allowance. Legally, any money earned after marriage is considered shared property.)

However, in this age of dual-income households, I think many people want to manage the money they earn themselves, so it's necessary to have a discussion early on.

(What one person thinks is fine might not be acceptable for the other!)

My husband and I also thought about how to manage our finances after getting married.

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My opinion: I'm fine with either an allowance system or a way of putting money into the household.

My husband's opinion: Since overtime and bonuses significantly impact income, a fixed allowance would demotivate him. It’s better to contribute a set amount to the household monthly.

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Since my husband was against the "allowance system," we decided to transfer money into our household account each month.

To avoid stress from rigid rules, we initially decided not to set a specific amount each month. We both keep aside the amount of money we want to have on hand while determining how much we are comfortable contributing to the household on our own.

Our household budget management is quite loose, and there's definitely room for improvement, but I think it's great that we were able to align our understanding of how to manage money and our financial perceptions early on in our marriage.

How Do We Manage Our Money?

In our household, we have:

1. My personal Rakuten Bank account (where my salary is deposited)

2. My husband’s personal Mizuho Bank account (where his salary is deposited)

3. A household Rakuten Bank account in my husband’s name (a savings account for money we don’t plan to use. Utility costs and groceries are withdrawn from this account via card.)

These are the three accounts we use.

At first, when I wanted to check how much money we had, I logged into my Rakuten Bank online banking to check the amount, logged out, and then logged back into our household Rakuten Bank account to check again.

However, logging in and out repeatedly was a hassle, so recently we've started using an app called “Oshidori” that allows us to manage multiple accounts in one household budget app.

My husband uses the same app, and his account can access his personal and our household accounts, while I can see my personal and our household accounts.

(We’ve set it so that we can't see each other's personal accounts.)

It may have been common in the past for the wife to manage the household account while the husband didn't know how much was in it, but we wanted our shared finances to be transparent so we can view them whenever we want, making the smartphone app very convenient.

➡ Download the App: Oshidori here

Savings and Investment

My husband and I each transfer money into our household account each month, and we use that account to pay for living expenses (utilities and groceries).

Since the money coming in is slightly more than what's going out each month, our savings in that account are increasing.

However, it seems pointless to just leave the money sitting in the account, so we keep a reasonable amount accessible and have started investing the rest.

There are various types of investments (stocks, FX, cryptocurrency, real estate, etc.), but since I prefer to take minimal risks, after some research, I decided to invest in mutual funds.

Investing in stocks means putting money into a single company, whereas mutual funds aggregate investments in various companies' stocks and bonds.

If you invest in a single company, you risk loss if the company performs poorly or goes bankrupt, but mutual funds are diversified among various stocks and bonds. For example, with "Global Stocks," it’s like purchasing a package of stocks from various companies around the globe.

Since mutual funds consist of stocks from multiple companies rather than just one, they are said to be less risky as long as the global economy continues to grow.

Of course, there can be short-term declines (recently, in March 2020, there was a sharp drop due to COVID-19, but it has since risen above pre-COVID levels), but reports indicate that if you invest for about 30 years, the likelihood of losing money is very low.

Initially, I was apprehensive about investing, but after starting, I found that many people do it, and it's not as difficult as I thought.

Got Insurance for Pregnancy and Childbirth

Additionally, I’ve taken out insurance in preparation for pregnancy.

Since almost my entire family had children through C-sections, it seemed prudent to have insurance that pays a lump sum if a C-section is required.

(1 in 4 Japanese women reportedly have C-sections.)

"Baby Planet" is convenient as it connects you with financial planners who work with insurance companies, making it helpful.

➡ Here's the site for Baby Planet＊

As a result, I ended up being hospitalized due to severe morning sickness, so I’m really glad I had taken out a women’s policy.

I Want to Consult a Financial Planner

This is what I’d like to explore doing in the future, but I’m considering consulting a financial planner about our household finances.

Currently, we live in a rental apartment while both working,

✅ Once we have children, will our current finances sustain us comfortably?

✅ If we have two children and send them to private school starting in middle school, will finances still be manageable?

✅ If we want to buy a house, how much of a loan can we take out?

✅ Do we need insurance, and if so, how much would we need?

✅ If I want to pursue early retirement, is that possible?

I want to inquire about these points.

While we think, "Well, we both work, so it should be fine," it’s important to get a third party's professional perspective on things.

While we don’t have kids now, I want to consult a planner while I still have the time.

(I'm introducing Mr. Takahashi, a financial planner who specializes in newlyweds through Marry. I’m thinking of consulting with him!)

➡ Contact a Financial Planner Specialized in Wedding Timing through 【LINE】＊

➡ Things You Can Consult with a Financial Planner

To Live a Fun Life Together

I’ve introduced what my husband and I think about "money."

The longer you wait to discuss money after getting married, the harder it becomes to find the right moment to talk about it.

I believe it’s better to address these matters properly during your newlywed phase, so I encourage you to have these conversations early and envision a bright future together.