FOR IMMEDIATE RELEASE

San Diego, Calif., September 1, 2006 – You have the date reserved, the invitations are mailed, the cake designer is ready, the photographer has his guest list. You might even have your new residence “ready to go.”

What have you forgotten? More and more smart couples are realizing they should start planning their financial future in advance of the “big day.”

"Money is the one thing that people say they argue about most in marriage,” says marriage researcher Scott Stanley. According to Gerri Willis at CNNMoney.com, “Of course love is blind, but that doesn't mean that you have to be. Tying the knot binds your finances together too . . . for better or worse.”

Even Dr. Phil dedicates a lot of his website resources to the issue of finances and a happy marriage: “It's this simple: Money can ruin your marriage.” Dr. Phil says, “In fact, it's the number one problem in marriages, and the number one cause of divorce. People often underestimate the commitment in merging two lives together. The reason we fight most about money is because it's the most measurable.”

It might be bigger than that! In 2003, Creighton University researchers studied what are the most serious challenges to new marriages in their first five years. Four of the top five issues were financial: balancing job and family, debt brought into the marriage, the husband’s employment, and finances (in general).

“Money conspires to antagonize couples,” says Kathy Chu at USA Today, “It sometimes invites divorce. And though finances have always raised tensions for couples, it may be harder than ever these days to avoid conflict. That's because today's range of family complications — moms leaving and re-entering the workforce, late marriages that bring debt and adult children, shrinking pensions and baffling health care choices — are demanding ever-more financial decisions from couples who can't even agree on whether the house is warm or cold.”

So what can a newlywed couple do to protect themselves?

“We want you to be a successful couple in every way, including your finances,” said Mary Cunningham, President/CEO of USA Federal Credit Union. “You can get there by putting a little effort into your financial fitness. It can go a long way toward making your marriage a complete success.”

USA Federal offers free personal financial counseling for all its members, especially newlyweds, through the BALANCE program. "We serve USA Federal’s members with a wide variety of financial coaching tools. With one simple phone call we can walk you through all the important decisions and eliminate a lot of tension in your relationship.” With BALANCE, the one-on-one financial fitness coaching includes everything you need, such as:

• Household budget checklists
• Setting goals for buying that first home
• Managing your debts and staying financially healthy
• Building toward a comfortable retirement

Now, anyone can get the “Top 10 Financial Tips for Newlyweds” guideline just for the asking or visiting our website. Most of the important beginning steps are covered, from setting up a household budget and setting savings goals to establishing open financial communication and getting the right insurances.

“The one-on-one counseling was awesome and easy,” said bride-to-be Kendall Rochlis, whose wedding to Eduardo Guerrero is in September. “We are both working, looking to buy our first house, and thinking about kids. We needed good advice, so we went to our USA Federal Branch Manager in Tierrasanta.”

What they got was the “Top 10 Financial Tips” and a lot more.

“We have a lot of resources for newlywed members and it’s free,” said Liliana Pereira,
USA Federal’s Tierrasanta Branch Manager. “We sat down with Kendall and John and started with our ’Top 10 Tips’ and we set up a series of easy one-on-one training sessions.”

Need to pay off pre-wedding debts? We can help with a budget.
Need a mix of savings plans? You can get good savings rates, money markets, and more.
Need a low rate on a car loan? It’s available!
Need an IRA or other investment? We specialize in helping you make the right choices.
Want that new home? We have a low cost HLPR program and other low rate financing.

“With what Liliana gave us, I know we are starting in the right financial direction,” said Ms. Rochlis. “Eduardo and I are setting up a budget and a savings plan right away. We are working together and that is what a marriage means, right?”

USA Federal's Top 10 Financial Tips for Newlyweds

1. From the beginning, set up a household budget and stick with it. Be open with each other about your income. Put your checking money into one checkbook to make accounting and bill paying easier. Make joint decisions on spending and get expert help if you feel overwhelmed. Establish ground rules for making these decisions fairly. Set up a “financial date night.” Try a night before the 10th of the month when the bills have arrived. Pay the bills together so you can both share in the financial health of the family. One spouse can write the check, the other records the payment and stuffs the envelope. Use this time to discuss your finances, your dreams for the future, and any issues that have developed.
2. Decide how fast your pre-wedding debts, e.g., student loans, will be eliminated. Get your student loan consolidated to freeze the interest rate. Make this your top priority, so you can get going toward real family wealth.
3. Pledge to save. Savers can get wealthy, but spenders won’t. It is easier than you think once you start doing it. As a rule, you should save 5% – 8% of your monthly gross income in your 20’s. Double this in your 30’s and 40’s, saving 10% - 15% monthly. This percent includes all savings accounts, 401(k), IRA and other investments. If only one income is needed to pay the bills, use the other spouse’s income to save or invest.
4. Take advantage of different kinds of savings accounts. Once your pre-wedding bills are paid, your first goal is to build your “Emergency Fund.” Have at least three to six months worth of salary set aside in this fund. Have additional funds in money market funds, certificates of deposit, or treasury bills as a backup.
5. Start planning now for buying your first home. Evaluate your financial fitness with resources available at USA Federal Credit Union. Set up a plan and stick with it. Explore if you qualify for low-interest, first-time home buyer programs, such as HLPR.
6. Get professional tax advice. Make good tax decisions from the beginning to pay only what you owe. Should you file jointly, or married and separate? How and when should you transfer assets? Get the advice now.
7. Consolidate your credit cards by eliminating duplicates (and unnecessary annual fees). Teach yourself credit card discipline or get help from credit counselors before you get into trouble. Three lines of credit, perfectly paid on-time, will help to generate a credit-worthy FICO score.
8. Set up your life insurance and beneficiaries. Term life insurance is usually more affordable for young married couples. A payout rule of thumb is 10 times your annual income. Make your spouse a beneficiary on life insurance plans, retirement and other plans at work, and IRAs.
9. Draw up a will and living trust once you are married. If you and your spouse pass away without an established will, a court or state laws will dictate how your assets will be distributed and charge high fees for the process from your estate.
10. Evaluate your employee benefits and your other options. Consolidate medical insurances to save money. If you both have group plans, you might be able to save out-of-pocket premium costs by having one plan cover both of you. If you both work, check the benefits to see if you can save money or increase your return. Not all 401(k) plans are identical, so consider investing to the maximum in the 401(k) which has the higher employer match. Even with 401(k) plans at work and other investments, consider establishing IRAs. Combined with a 401(k), the favorable tax treatment from a traditional IRA or Roth IRA can be enormously valuable in the long run.

More Online Resources
Here are some good online resources you can print out and share. You will find good advice and great discussion starters.

• http://www.improve-yourmarriage.com/achieving financial harmony in married life.html
  -- Basic article plus links with more information.
• http://drphil.com/articles/article/32
  -- Good perspective plus additional links.
• http://www.thenest.com/articles/article_life.aspx?articleid=A60417103450
  -- Check out their online quiz for determining if you are ready to buy that first home.
• http://www.iberkshires.com/story.php?story_id=19890
  -- An article for about-to-be-married couples.
• http://www.iparenting.com/resources/articles/harmony.htm
  -- A guide to being debt-free.
• http://money.cnn.com/2006/07/10/pf/saving/willis/index.htm
  -- Tips to keeping your marriage financially fit.
• http://www.usatoday.com/money/perfi/basics/2006-04-27-couples-cash-series_x.htm
  -- How bad habits can wreck a marriage.

About USA Federal

With more than 61,000 members and over $700 million in assets, USA Federal Credit Union (headquartered in San Diego) operates 20 branches, including locations in San Diego and Riverside Counties, Las Vegas (NV), Japan and Korea. Members of this non-profit financial cooperative include the military, civilians and select employee groups. Founded in 1953 at the Naval Training Center in San Diego, USA Federal offers a full range of financial services including business services and consumer savings, checking, mortgage and home equity loans, auto loans, debit and credit cards, share term certificates, IRAs, and a 24-hour phone center. Online services include eStatements, Online Banking and Bill Pay with Money HQ and online loan applications and approval. Additional services include the BALANCE financial fitness program, and investment and retirement planning offered by MEMBERS Financial Services. This credit union is federally insured by the National Credit Union Administration. Visit www.usafedcu.org or call (800) 220-1USA (1872) or (858) 831-8100 for more information.

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Note: USA Federal maintains the above information for archival purposes, which is presumed accurate upon release, however, data may become outdated over time and affect accuracy.