First, make sure the two of you are on the same page about finances before getting married. As part of this conversation, you both should disclose if you have assets or debts you’re bringing into the marriage. More than half of married couples report carrying debt into the relationship¹. If there are substantial assets or debts, you may want to consider a pre-nuptial agreement to specify who is responsible. Also discuss how you both want to manage finances going forward. Do you want to combine your assets? Open/use a joint bank account and credit cards? Or do you want to keep your finances separate? There is no right answer, but you should agree on how intertwined your finances will be. Once you start the dialogue about money, it’s important to keep that going. There will be many financial issues you both will face (for example, helping aging parents, having kids, relocating for a new job, saving for retirement) and having an open line of communication is key to a successful marriage.

Congratulations! First, review your health insurance plan to make sure you understand what maternity benefits are covered and what your out-of-pocket costs will be. Review your company’s family leave policy to determine how much of your time will be covered and for how long. Next, talk with your partner about who will take care of the baby and coordinate any maternity/paternity leave. Draft up a new post-baby budget including all related expenses you can think of (like childcare, baby equipment, diapers, clothing, etc.). Estimates are okay; you want to get a sense of what your cash flow will look like. With your partner, compare this new budget to your current one and make adjustments as needed. Education costs continue to accelerate, so it’s never too early to start saving for your child’s education, whether it’s through a 529 plan, custodial account or a savings account. Make sure to update your estate plans as well, adding potential guardians for your child and updating beneficiaries information for your life and disability insurance policies.

Every family needs a budget, but a budget is crucial when one of you decides to forgo a paycheck. While you may need to cut costs and make sacrifices, there are two things you shouldn’t stop doing: paying off debt and saving for retirement. Also, life insurance coverage is essential for both of you, whether you’re working or not. Many people wrongly assume that stay at home parents don’t need life insurance because they no longer have a salary. But if the working spouse dies, it’s likely that the other spouse will need to start working and someone else will need to take care of the children. Life insurance can provide that critical support in times of need. Same goes for disability insurance; the working spouse should get coverage as it can provide financial stability with unexpected situations, like an injury or serious illness. It also makes sense to set up an account to cover emergencies; generally speaking, you want to have enough money to cover three months of living expenses.

These can be tough conversations to have with your parents. One way you could start a conversation with your parents would be to bring up your own estate planning needs for your family. You can also bring in a trusted third party, like the family financial advisor or a close friend of your parents, to help you broach the topic with your parents. Here are some questions you can ask:

• Who are your advisors and how do I contact them?
• Do you have a will and these other essential incapacity documents (like powers of attorney and healthcare directives)?
• Are your beneficiaries up to date?
• Where can I find your financial accounts information and other important files (like insurance policies and tax returns)?
• What kind of long-term care would you like to receive? How do you envision your memorial service?

Family meetings might also serve as a good forum for having discussions about your parents’ estate planning needs. Read more about family meetings here.

Kudos to you for thinking ahead! The data supports your instincts around retirement planning:

• Women typically live longer than men (81 years vs. 76 years)²
• Women have lower cumulative lifetime earnings³
• Women have fewer years to save due to time out from the workforce to be caregivers⁴

So what can you do?

• Take advantage of your work retirement plan and save as much as you can. If your company offers a matching contribution, make sure to save at least that amount. Don’t give up free money!
• If you’re married but not working, you can still save for retirement with a spousal IRA. Your spouse must have taxable income and the combined IRA contribution amounts can’t be more than the taxable amount reported on your joint tax return.
• Review what your estimated Social Security benefits will be when you retire. Each year you hold off on collecting your benefits after your full retirement age (which is somewhere between 66 and 67 years currently), you will boost your payments by 8% for life.

First and foremost, have the conversation. 18% of parents have never talked to their kids about finances⁵ and the silence can turn money into a forbidden topic. Talking to your kids about money can help instill good financial habits that can last a lifetime. Financial conversations with your children should include your family’s values on the best way to use money. Is saving important to you? Share an example of how you saved to pay for a first car and how you felt when you got the keys. If you strive to live on a budget and not carry debt, talk about how living within your means helps you worry less. Big on philanthropy? Discuss why certain causes are meaningful to you and how the money you give impacts the world and other people. Even if you don’t share actual dollar amounts, they will understand the decisions you made and the thoughtful consideration you give to how to handle your finances. Read about six ways you can teach your daughters about money.

Losing your spouse is an emotionally difficult time that can make managing financial tasks feel almost impossible. Ask for help if you can, whether it’s from a family member, close friend or your advisor. Here are some initial steps to consider:

• Gather all relevant documents, such as: will/trust, life insurance policies, birth certificate, marriage certificate, death certificate (order at least 12 from the funeral home as you will need them to claim benefits), your spouse’s Social Security card, investment account statements and retirement/pension plan statements.
• Talk with your estate planning attorney to review your spouse’s will/trust and address beneficiary distributions.
• Contact financial institutions and begin changing the name on the accounts as needed.
• Notify the Social Security Administration of your spouse’s passing to claim the death benefit and see if your spousal/survivor benefits need to be adjusted.
• Send a letter to all three credit bureaus to get copies of your spouse’s credit reports to make sure you’re aware of all existing debts.
• File claims for any outstanding medical care benefits with your spouse’s health insurance provider.

Divorce can be emotionally draining and painful. While dealing with finances might be the last thing you want to do, it’s important to take steps to prepare and protect yourself. Here are some initial steps to consider.

• Gather your financial records; being organized now will save you time and money. Make copies of documents and store them in a secure place that only you have access to.
• Start putting money away for legal and other professional fees. You also need to cover your day-to-day living expenses, keeping in mind that the divorce process can take much longer and cost more than anticipated.
• Open new accounts, preferably at institutions where you don’t have your joint accounts.
• Get a copy of your credit report so you can monitor your credit and make sure joint debt is not being accrued on existing accounts.
• Change your will, healthcare directives, and beneficiaries information. You likely don’t want your soon-to-be ex to make medical decisions on your behalf or inherit your assets. You can revise your estate planning documents when your divorce is finalized.