Couples must manage debt

In the new century, young couples planning marriage are finding themselves facing financial challenges their parents never had to confront, according to Mary Moriarty, assistant director of the Family Life Office for the Diocese of Albany.

The biggest roadblocks are massive, lingering college loans left by the skyrocketing cost of higher education, she said. As long as ten years after graduation, B.A. and M.A. candidates can shoulder debts of $80,000 to $100,000, which they carry into marriage.

Similarly, couples marrying before they enter graduate school have to be aware of their own dreams and goals, and incorporate them into their budgeting process to avoid heavy debt.

Credit card

Many young adults, Mrs. Moriarty said, rely heavily on the convenience of credit cards to pay for bills and household items.

While credit cards can be useful, cautions recently married Anthony Koonce, a parishioner at St. Peter's Church in Saratoga Springs, running up a balance can be quite risky. Instead, he advocates "spending less than you make. It's a pretty easy concept. We keep track of what our credit card bill is, so that we have a set budget for the max that we allow ourselves to put on it each month."

The Koonces said that since they've been budgeting, keeping track of their spending seems to be easier.

"The bills went down after we got married," he said. "We don't have to worry about paying for two different phones. We combined our auto insurance, and we only have to worry about paying for one utility bill instead of two."

Planning

Sound financial planning for young couples can begin even before marriage, said Mrs. Moriarty; it can even begin when planning the wedding day itself.

"Couples feel that they have to provide their guests with this gala," she said, describing how young men and women spend money showering guests with expensive party favors and costly meal options. A typical "dream wedding" can cost upwards of $20,000.

"The costs just run away from them," she said, "especially if they've been out of the house for a while."

Young couples, she says, don't take into consideration the fact that most people "don't remember anything about the wedding, unless it's a personal or sentimental thing," she said.

To make their wedding memorable for themselves and for guests, she counsels, couples can try writing personalized welcome messages to each guest, for example, and leaving them at the table in place of favors. Couples can find other inexpensive ways to create a distinctive, unforgettable wedding, she added.

Pitfalls

The wedding day isn't the end to the financial pitfalls that await newlywed couples, according to Mrs. Moriarty.

"Especially if the couple is a little older, they feel that they really should buy a house rather than staying in apartment," she said. "A lot of couples do this without realizing how much it costs not only to buy, but also to maintain."

According to Mrs. Moriarty, monthly mortgages can sometimes be more expensive than rent, and young couples with their own homes are responsible for the costs of heating, electricity, repairs and home improvements.

Children, also, should be a definite consideration for engaged couples. Mrs. Moriarty noted that couples must be aware of "how expensive raising a child can be."

At the same time, she said, couples should know, when purchasing items for their child, that objects like traveling cradles and expensive toys weren't considered necessities 30 years ago.

Talk it over

Avoiding these financial hurdles hasn't been a problem for some couples, such as Bryan and Kerry Duffy of St. Thomas the Apostle parish in Delmar. Mrs. Duffy says that communication is the key for her marriage's financial success.

"If we were to give advice, definitely we'd say talking about your spending and what your goals are," she said. "It can be a tough subject. Don't ever assume things."

(02-06-03) [[In-content Ad]]