COSTA MESA, Calif.—A new study indicates that financial discussions should take place among couples before they say “I do.”
Experian recently surveyed newlyweds nationwide to see what role credit and finances play in establishing a life together and achieving long-term financial goals, such as buying a home.
“Newlyweds were surprisingly unaware of their spouse’s financial situation before walking down the aisle,” said Rod Griffin, director of public education at Experian. “For example, 40% of all respondents said they did not even know their spouse’s credit score before getting married. In addition, one in three newlyweds reported that their spouse’s spending habits are different than what they expected.”
The surprises do not stop there. On average, newlywed respondents say they would spend more than $800 without telling their spouse, with men spending significantly more (an average of $1,259), while wives average only $383 before telling their spouse. In addition, 16% of respondents report having a secret financial account that their spouse does not know about (more men hide accounts), the report found.
While it seems conversations were not taking place prior to tying the knot, 80% of respondents said that credit scores were important. When asked what attributes were important in a spouse, 92% of survey respondents said financial responsibility.
“Credit impacts many aspects of building a life together,” said Griffin. “Couples should check their credit reports and scores and discuss them. Knowing these scores will help couples better plan for a future together and give them the opportunity to take steps to better manage their credit.”
According to the findings, the biggest financial goal for newlyweds is saving to buy a home but 32% say their spouse’s credit score has impacted the ability to secure a home loan. As a result, many couples may have to ask parents to cosign for them in order to qualify, Experian stated. In fact, 19% of respondents already have required a cosigner for a major purchase, such as a home, since getting married.
“Checking your credit score is simple,” explained Griffin. “We recommend initiating ‘Finance Fridays’ with your spouse — setting aside time one Friday each month to check your bank accounts and credit cards – as well as your credit score and report – together.”
Other key findings:
Before getting married, many respondents also did not know:
• Their spouse’s annual income (25%)
• Their spouse’s long-term financial goals (31%)
• The amount of their spouse’s student loan debt (31%)
Newlyweds major concerns about their finances:
• More than half (56%) considered the impact of a spouse’s credit score before marriage
• 39% say credit scores is a source of stress in their marriage
• Almost a fourth say developing a shared budget (23%)
• 19% say not being able to pay off debt