Your new life begins on the eve of your wedding. Marriage is a merger of lifestyles, ideals, and goals, and to succeed in this new stage, you need full transparency and a combined sense of commitment to your future plans. Among these plans is deciding the best way to manage money, setting future financial goals, and devising strategies to achieve them.
Financial planning for newlyweds is crucial and should typically start at the courtship stage. Discussing debts, income, assets, and money habits (saving, investing, spending) early on in the relationship is necessary to be well-prepared to start a home together.
Financial considerations for newlywed Nigerian couples
When it comes to financial planning for newlyweds in Nigeria, there is no hard and fast rule. It often depends on the couple’s income level, past experiences with money, and religious or personal beliefs.
Christie*, a 26-year-old nail technician living in Port Harcourt, told Piggyvest, “My husband and I have no secrets, as far as I can tell. We got married in November last year, and even before then, I knew exactly how much he makes, and he knows my income, too.”
According to Christie, who launched her business two years ago while still in the dating phase, transparently discussing money was part of their relationship’s natural and necessary evolution. “At the time, I was still learning how to do nails, and he supported me financially until I could buy my tools and set up my business. At first, sha, we didn’t talk about money because it felt as if he was my benefactor, but when I started earning well, and he stopped taking care of me, I noticed he became more open and willing to share everything with me. I don’t think I would have married him otherwise. It’s important to me.”
But one man’s dealbreaker is another man’s ideal situation. We learned this from Kingsley*, a businessman in his thirties, who believes that disclosing your exact income with your partner is not compulsory as long as your intentions are pure. “Every month is different; sometimes business is bad, but sometimes it’s good. Even me, I don’t know what I will earn this month, so she understands that whatever I bring is what I have.” Kingsley stated that his wife, a public servant, is satisfied with this dynamic, “I believe I am the head of the home, and she is my neck. It’s my job to take care of her and our future children.”
When asked to share a financial planning strategy that has worked for her home, Christie said, “We don’t have a joint account, but we are thinking about it. I think it’s a good idea, but my own income isn’t fixed. We’re still figuring out a middle point, and then we will open an account. For now, we split the bills; he’s in charge of rent, electricity bills and major bulk shopping, while I handle smaller expenses like subscriptions and daily groceries. We’ve bought some gadgets together, like our TV and a deep freezer.”
For Kingsley, his idea of financial planning is to acquire real estate. “I get a lot of liquid cash, so instead of looking at it, I invest in land. We’ve only been married for six months, but I want to buy at least two properties in her name this year, too. I think things can change anytime, so if things get tight, we can sell off the land. And if anything happens to me, she knows where all the papers are.”
Insights from the 2024 PiggyVest Savings Report indicated that only 13% and 10% of our Millennials and Gen Z respondents are saving to start a family. As these generations have come of age and begun to form partnerships and marry, the lack of financial preparedness for such a significant life milestone becomes all the more concerning.
Ultimately, the importance of financial planning for newlyweds cannot be overemphasised, especially when building a family. Getting married can also be a great financial decision for both parties, as double-income households are better suited for economically challenging times like ours.
Financial planning checklist for Nigerian newlyweds
Are you planning to get hitched soon, or have you recently tied the knot? Congratulations! Remember, that heady feeling from the honeymoon phase will feel even better and last longer with a solid financial foundation to stand on. It’s just like Davido said: Love is sweet o, when money enter love is sweeter.
Since it’s the season of love, we thought, “What better way to spread the love than sharing a checklist for financial planning for newlyweds?”
Here are eight essential steps in financial planning for newlyweds in Nigeria:
- Open communication:
One key aspect of financial planning for newlyweds is open communication. Communicating openly and honestly is essential for building trust with your partner in your marriage and cultivating successful financial planning with your spouse. Money is a pretty sensitive topic to discuss, but you must take the time to explore all aspects of your partner’s money philosophy and habits so that you can find a sweet spot and start to align on future goals.
- Debt:
Once you get married, your financial baggage also becomes your partner’s baggage. It is important to disclose all debts and your repayment plan so that you can tackle them together.
- Financial goal setting:
Another essential step in financial planning for newlyweds is setting clear financial goals. Once you have appraised each other’s financial habits and state, the next thing on the list is deciding how to make lemonade from your lemons. Take whatever you’ve discovered, and set goals for the home. Do you plan to own a home in the future? Put it down as a long-term financial goal. Do you want to have kids in a year? Great! Or a plan to pay off your debt? These are examples of short-term financial goals. Once you’re set on your goals, you can draw a road map to reaching them.
- Budgeting:
No financial plan is complete without budgeting. A budget is a period-specific financial plan that accounts for income and expenses over a period of time. It helps you keep track of your money and use it wisely.
Budgets are essential for achieving your financial goals; they should encourage strict spending without completely stifling you. Creating budgets and sticking to them can help you make daily decisions that foster deliberate and positive money habits and propel you faster towards your goals. And don’t forget to review your budget occasionally and make necessary tweaks.
- Combining finances:
A great strategy for financial planning for newlyweds in Nigeria is to learn how to combine financial resources. There are three common ways to approach this, and this decision should be based on what works best for you.
- Joint accounts: All income goes into one account, and all expenses are made from the same account. This method allows for full transparency and accountability.
- Separate accounts: You maintain your individual accounts and contribute an agreed-upon quota to household bills and goals. This method helps you retain your independence.
- Hybrid method: Keep separate accounts but create another account specifically for shared expenses such as monthly restocks, large purchases, rent, and utilities.
- Saving and Investing:
Financial planning for newlyweds is incomplete without a saving and investment plan. Living paycheck to paycheck will not cut it, and those financial goals won’t achieve themselves. Every time you get paid, create a plan to pay yourself first and grow your money. Your future financial well-being depends on it.
If you’re new to saving as a newly married Nigerian, consider using any of PiggyVest’s products to save. You can set Targets for specific goals, lock away funds for the future with Safelock, save in dollars with Flex Dollar, build financial discipline with Piggybank, and earn up to 35% returns on vetted investments using Investify. And you’re not just saving; you’re also earning great interest on the side!
- Emergency fund:
Some emergencies, such as job losses or medical emergencies, can seriously derail your finances. Rainy-day funds provide a financial safety net in these situations. We recommend keeping three to six months’ worth of income/living expenses in a readily accessible savings account like PiggyVest’s Flex Naira.
- Insurance:
Marriage means having a lifelong dependent — more if you choose to have kids. Accidents happen, so you must plan to protect the things that matter most: health, life, and property. Here are some coverage options to explore:
- Health insurance: Health insurance covers medical expenses. Most employers offer medical insurance, so review your coverage to see if individual or family plans are more cost-efficient.
- Life insurance: Buying life insurance will ensure your spouse and dependents are cared for in the event of your demise.
- Property insurance: Property insurance protects personal belongings and property against risks like fire, accidents, flooding and even theft.
Conclusion
In Nigeria, financial planning for newlyweds requires much time and effort, but it does not have to be intimidating. A strategic approach based on open communication, setting clear financial goals, and smart savings and investing can help you create a strong financial foundation for the rest of your lives together. Proper financial planning for newlyweds can lead to a secure future, help plan towards an early retirement, and ultimately build generational wealth for your kin.
