Money is the 1 problem couples fight about. It's often the spark that ignites bickering about ambitions, fears for the future and the inevitable power struggle. Communication is vital. Talking about how you plan to earn, spend and save money is easier when you agree on the priorities. Regardless of income levels, couples benefit from forming and adhering to a spending plan that includes discussion about making major purchases.

Financial advisors encourage wage earners in two-income households to design a plan that maximizes the benefits of the second income. For lower wage earners, the costs of child care, income taxes, and work-related expenses may outweigh the income benefits of a second job. Even for high wage earners, without proper planning the maximum benefit will not be realized, and in some instances, the additional salary can be a tax liability.

Planning tips for Two Income Households:
* Jointly decide if the paychecks will be combined into one checking account, or maintained in separate individual checking accounts. A designated amount from each paycheck could be deposited into a separate household account.

* Decide who will pay the bills and maintain the account.

* Each partner must have a personal allowance. Agree on the amount and make the money available routinely.

* Agree upon a savings and investment plan.

* Make the decision together on how you will finance new purchases such as a car or appliance. Regardless of who the user will be, avoid debt levels that will demand the full earning potential of both wage earners.

* If you file income taxes jointly, you are each responsible for any inaccuracies or errors on your returns. Before signing the tax return, examine the forms and ask questions.

* If you jointly hold a credit card account, you are both responsible for any debts incurred on the account.

COMMUNICATE--COMMUNICATE--COMMUNICATE

About the author:

Cindy S. Morus (www.phelps-creek.com) is a Certified Financial Recovery Counselor and Certified Credit Report Reviewer specializing in showing women and their families how to achieve financial well-being and peace of mind. Contact her at 541-387-2995 or cmorus@phelps-creek.com She is also the publisher and editor of "Women's Financial Freedom Monthly", an internet gazette dedicated to helping people improve their financial fitness no matter what decisions were made in the past.

Attention Ezine editors/Site owners: Feel free to reprint this article in its entirety in your ezine or website as long as you leave all links in place, do not alter the content and include our resource box as listed above. If you do use the material please send us a note (cmorus@phelps-creek.com) so we can take a look. Thanks