The guide below includes strategies young couples can use to start, maintain, and grow their savings as they prepare for unexpected expenses and work towards short- and long-term goals.
Start with financial transparency.
Before deciding how much to save, make sure you understand your current financial picture. It’s important to have open and honest conversations about income, regular expenses, existing debt, savings, goals, and more. This level of transparency ensures you have enough information to make realistic decisions together.
The difference between individual and joint finances.
Couples generally have several options: keeping finances separate, combining them, or doing both. A hybrid system, for example, might involve maintaining individual accounts while contributing to a shared account for household expenses.
The answer you determine for you and your partner depends on your personal values and the stage you are at in your relationship. If you open an account together, ensure you review the account terms so you both understand the ownership, access, and how either of you can use the funds.
Communicate openly about finances.
Money conversations should extend beyond major purchases. It’s helpful to talk about changes in income, unexpected expenses, debt, savings progress, and purchases that could affect a shared goal.
It’s very important not to hide purchases from your significant other, especially if you used savings or are not able to contribute to your emergency fund like you normally would. It is better to discuss the purchase first and why it is important to you than hide it and feel guilty later. The only exception to this rule might be gifts, but even then, it is a good idea to discuss expectations around spending and agree on what amount you are both comfortable with spending on each other.
Build your savings foundation.
Once you understand where you both stand financially, the next step is creating a plan for how you will save together. It’s a good idea to align on your budget, shared goals, and contribution strategy before deciding where to keep your savings.
Create or review your budget.
Start by reviewing your monthly income and spending. Separate shared expenses, like housing, utilities, and groceries, from individual or discretionary spending. List out everything you spend your money on in a given month and categorize it into essentials versus wants. While some non-essentials may also be non-negotiables, there may be a way you can both enjoy spending money without dipping into your savings.
Set and prioritize shared savings goals.
Decide what you want to save for, how much you need, and when you expect to need your money. Your goals should be something you are both invested in, such as a vacation, honeymoon, down payment on a house, or a new car. Figure out how much you can reasonably contribute to that goal each month.
If you are working toward several goals at once, decide which are most important and which can wait. You may want to organize them by time horizon—for example, goals you hope to reach within a year, within a few years, and further into the future. Start small and grow your savings goals alongside your relationship.
Decide how each of you will contribute.
Saving together does not necessarily mean contributing the same dollar amount. If your incomes differ, you might each contribute an equal percentage of income instead. Other couples may prefer equal contributions or another arrangement that works for their circumstances.
Choose a method you both consider manageable and revisit it when your finances change. Setting up automatic transfers can make regular contributions easier to maintain.
Start an emergency fund.
Decide whether to create a joint fund or maintain separate emergency savings based on how you manage your finances. Many households aim to build several months of essential expenses over time, but the amount that makes sense for you depends on factors like income, job stability, dependents, and other things.
Automating contributions to your savings account can help make savings a regular part of your monthly routine. A good starting goal is to have at least three months’ worth of living expenses shored up. Many households aim for six months.
Compare savings accounts, money market accounts, and CDs.
Where you keep your savings can depend on when you expect to use the money and how much access you need.
High-yield savings accounts, money market accounts, and certificates of deposit (CDs) can all serve different savings needs. A high-yield savings or money market account may be suited to funds you want to keep accessible, while a CD provides a fixed interest rate for money deposited for a set term. Consider how each account could support your short- and long-term savings goals.
Before opening any account, compare the annual percentage yield (APY), minimum opening deposit, fees, withdrawal rules, and other account terms. Matching the account to the goal can help you avoid putting money you may need soon into an option that limits access.
Manage credit cards and high-interest debt.
Strategize how to tackle debt and plan for your financial future to keep your savings on track.
Use credit cards strategically.
Use credit cards to pay for purchases and earn points you can redeem for cash back, travel discounts, and other rewards. If you use credit cards for everyday purchases or rewards, have a plan for paying your balance and avoiding unnecessary interest charges. Make a plan to pay your statement balance in full by the due date. Keeping your balances below 30% of your total available credit may also help you maintain your credit score.
Talk with your partner about how credit card spending fits into your overall budget, particularly if either of you is working to pay down existing balances.
Help each other reduce and avoid high-interest debt.
High-interest debt can make it harder to put money toward savings. Taking on debt is not always a bad thing, but it can be hard to overcome its burden. Use your combined financial knowledge to plan out how you can avoid higher interest rates, such as delaying a purchase or paying with cash. Before taking on a new debt for a discretionary purchase, consider if delaying the purchase or choosing a less expensive option would better support your shared priorities.
Cut costs without sacrificing your relationship.
Saving more does not have to mean removing everything you enjoy. Explore ways to increase your savings contributions by identifying how you can spend less while still enjoying each other’s company.
Make date night affordable.
Dates do not have to be expensive to feel worthwhile. Mix higher-cost outings with lower-cost options. Sometimes, spending a night at home watching movies or having a picnic in the park can help strengthen your relationship without undoing all the hard work you have accomplished with your finances.
Meal plan together.
Make meals together at home, incorporating any dietary needs that may apply. Help each other avoid defaulting to going out or getting take-out. Incorporate dishes you both like to satisfy both your needs. Even replacing a few restaurant or delivery meals each month with meals at home can free up additional money for other goals.
Find recurring expenses to reduce.
Review recurring expenses like streaming services, memberships, apps, delivery subscriptions, and other monthly charges. Consolidate recurring expenses to reduce spending and free up funds you could put toward your savings goals. Consider which monthly services offer the most value to you and your partner and cancel those you no longer need or use. For example, maintain a single account for streaming or delivery services, or combine accounts to receive a discounted rate at the gym. Redirect some of that saved money toward your shared goals.
When to seek professional guidance.
Some financial decisions become more complex as your relationship and finances grow. If you are unsure how to move forward with your finances, a professional can help you navigate your current options and plan for future goals. They can help you both deal with debt, buying a home, planning for retirement, navigating taxes, and handling other financial changes. With two of you working toward a savings goal and a professional by your side, you are set up to break through any barriers that might be stopping you.
Approach saving and other financial decisions as a team.
Saving as a couple can help you reach your financial goals while creating clearer expectations around how you manage money together. You need a savings system you both understand, contribute to, and revisit as your circumstances change.
Ready to start saving? Explore Popular Direct’s high-yield savings accounts and CDs to find an option that aligns with your goals. Visit our website to view current high-yield savings account rates and CD rates, and apply online.
