Money matters a low priority when love takes hold

Many couples are starting married life with a burden of debt and no plan in place to pay it off, according to a recent Money & Marriage Survey* conducted for Real Insurance.  The debt hangover is a result of wedding budgets that have spiraled out of control.

Despite couples’ best intentions to plan and save for the cost of their wedding, most will be faced with a shortfall of over $34,000** on average and no immediate financial plan to begin to reduce the debt.  The survey highlights the short-term thinking that loved up engaged and newly married couples have with regards to their finances. 

· Only two in five (40%) plan to pay for their wedding upfront

· Couples’ priorities change once they are married, as paying off loans is a financial decision of  increasingly high priority once the rings  are on (33% married vs. 28% engaged)

· 80% of couples do not have an up-to-date will in place, should the unthinkable happen. However, 55% of couples combine their finances after they are married.

· Around one in three (35%) do not have home and contents insurance 

· The 50+ age group are most likely to keep their finances separate after marriage (27%)

Sanjay Balakrishnan, General Manager, Marketing, Real Insurance, said: “This research shows that couples are increasingly starting married life with a significant amount of debt which is a scary thought.  When you consider that Australia has one of the highest house prices to income ratios in the world making it difficult for first home buyers to afford to buy a home, beginning married life together saddled with a large wedding debt doesn't make a lot of sense when you look at the bigger picture.

“Being financially savvy and with some plans in place it doesn't have to be this way.  An accurate wedding budget is a good place to start together with identifying areas where you can save money to put towards protecting your new future together.  Simple things like creating an up-to-date will, can help you to feel secure, and make sure you are protecting each other – til death do us part.”

Pointing again to couples’ short-term thinking, The Real Insurance survey also shows that only one in four engaged or newly married couples have either life or income protection insurance. Mr Reid added, “After the big day, it is important couples invest the time and effort to make sure their financial affairs are in order. 

“One important element that can be overlooked during such an emotional milestone is that women need to consider insuring their wedding ring as part of home insurance.  Policies vary but with the average ring costing almost $7,000, neglecting to insure is a big risk to take.”

For more information, please visit: www.realinsurance.com.au or http://www.realinsurance.com.au/latest-news/march-2015/the-irrational-cost-of-love

 * Money & Marriage Survey from Real Insurance undertaken in conjunction with the annual Bride to Be ‘Cost of Love’ survey.