Better Together: Ways to Save After Tying the Financial Knot

March 8, 2016


Better Together- Ways to Save Feature ImageGetting married opens up more opportunities to save money than while you were single.

As a couple, you should discuss the post-wedding finances: Do any of you have outstanding debts? How will you divide day-to-day finances? Will you merge your accounts or keep them separate? It’s imperative to lay down a financial plan and create a budget together. But once that’s out of the way, you can start to look into the benefits and savings that come with being married.

Employee Health Benefits

Most companies that offer health benefit plans will allow you to extend the plan to your spouse. If only one of you has coverage, then this is a great way for the other to save on things like dental care and prescriptions. If both of you have plans from your employers, you can often mix and match between the two to pick the best and most cost-effective fit for your family.

Car Insurance

A poll a few years back showed that married people are less likely to get into an accident or get a ticket than single drivers, so some insurance companies may offer cheaper premiums once you tie the knot. If you both have good driving records, you could also see a decrease in your premium if you combine your vehicles into one policy because of the multi-vehicle discount. This discount can bring you a savings of up to 10 to 20 per cent.

You may also be eligible for a discount if you bundle your policy with your home insurance. But how do you find these amazing savings? Comparasave.com makes it easy; simply compare quotes from over 30 insurance companies to find the best priced option available.

Credit Rewards

If you have a credit card that offers cash back, points for travel, or other rewards, you probably weren’t able to earn much on your own. By adding your spouse to the account and using the same card, you could earn more rewards faster. But remember, those rewards aren’t worth a hoot if you’re not able to pay off your card each month to avoid interest fees.

Loans

Two incomes are better than one when applying for a loan. You could qualify for larger loans for big ticket items like a home mortgage with better terms (depending on your credits scores of course).

Taxes and Tax Credits

Depending on your situation, you may be able to take advantage of the spousal tax credit or the Family Tax Cut. You may also be able to pool your charitable donations together for a larger tax credit or medical expenses. If one of you has a TFSA or RRSP, you can both arrange to make deposits to maximize the benefits of these savings vehicles.

  • Want to learn more about how getting married affects your taxes? Check out the Financial Consumer Agency of Canada’s post “Couples and Taxes”.

Home Savings

There are quite a few advantages to moving in together. There will only be one rent or mortgage to pay and one set of bills. Also, if you both have your own furniture and appliances, you could even sell any extra items you no longer need.

If you are buying a home, it’s best to shop around for home insurance as premiums could vary from company to company. Don’t assume your current home insurance provider will give you the best rate at your new residence.

Holding Each Other Accountable

Couples are likely to discuss spending and do more financial planning together if they share financial resources. And let’s face it, going on a spontaneous shopping spree and coming home to a judgemental spouse may curb your spending splurges. You both will likely become the voice of reason for the other when tempted to make impulsive purchases. 

Finance and romance go hand in hand. If you’re going to spend the rest of your lives together, you’ll want to save some money for your future together while you’re at it.



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