[Practical Finance] Newlywed Fund Management Recommended by a Financial Supervisory Service Team Leader

A Financial Supervisory Service Team Leader's Pick:
Smart Financial Life by Life Cycle

▶Order of Articles
<1> Early Career Financial Management
<2> Newlywed and Childbirth Financial Planning
<3> Preparing Education Funds for School-Age Children
<4> Financial Planning for Adult Children and Independence
<5> Healthy Retirement Life

"We decided to live together!" Applause for the young couple's decision to marry. To fully bloom the love nurtured hand in hand, solid financial strength is essential. It may sound dry and unromantic to prospective newlyweds, but marriage is reality! After marriage, many are surprised to discover financial issues or spending habits of their spouse that they did not know before. However, since they have grown up in different environments for a long time, conflicts are natural, and efforts to adapt and resolve them are necessary. Didn’t the world-renowned writer Tolstoy say, "What matters in a happy marriage is not how well you match, but how you overcome your differences"?

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Getting to Know Each Other - Checking Each Other’s Financial Products and Setting Joint Goals

# Yang Hanbin, a newlywed bride who has been married for one month and has nothing to envy, one day received a phone call from her mother-in-law. "There is a whole life insurance policy under your husband's name; since you are married, you should take it over and pay it." What a thunderbolt! Cancelling early would cause a big loss, and paying premiums until her husband turns 60 was a huge burden. While looking for ways to reduce the premium, Yang found a health discount rider on the Financial Supervisory Service website.

This system offers a 2-8% discount on whole life insurance premiums if conditions such as non-smoking, normal blood pressure, and body mass index (BMI) are met. Yang submitted her husband's health checkup results to the insurer, received a 5% premium discount, and got a retroactive refund of 1.5 million KRW on premiums paid over the past 15 years. Proudly, she said, "I married a woman who saves money with little tips, right?" "If I weren’t healthy, those tips wouldn’t help!" The thrifty wife and healthy husband are enjoying their sweet newlywed life today.

Most newlywed couples’ joint goal is to steadily save a lump sum, and for this, it is necessary first to understand their basic asset and liability status. They should also check the financial products each holds and organize or adjust any overlapping or unnecessary products. If high-interest debt repayment costs take up a large part of fixed household expenses, the goal should be to pay off that debt as soon as possible. It is also important to know the size of liquid assets available for urgent use.

Making a Cozy and Precious Home - Treat Your Housing Subscription Account Like Raising a Child!

# Jung Ga-eun, who is devoted to prenatal care for her son to be born in a few months, aims to buy a home and decorate her son’s room. But the money saved is just a drop in the bucket. Even gathering all her soul, it is not enough to buy an apartment.

For families starting to buy a home, winning a housing subscription lottery may seem like a distant dream, but with strategic preparation, it is the most efficient method. The government operates various housing supply systems to help the homeless acquire homes, so during the newlywed and childbirth periods, it is important to carefully review these subscription systems and prepare to qualify for first-priority subscription. The price of apartments won through subscription is generally cheaper than the actual transaction price after the apartment is completed, so using the subscription system is advantageous.

The Housing Subscription Savings Account allows free monthly deposits from 20,000 KRW to 500,000 KRW in units of 10 KRW. To get a perfect score of 17 points for subscription to private apartments based on the account subscription period, the account must be maintained for over 15 years. Therefore, the subscription account should be nurtured patiently over a long period, like raising a child.

Exploring Various Loan Products - Feeling Overwhelmed About Borrowing? Check Out Loans for Low-Income Households!

# Ko Gi-young, who works in delivery, one day felt a tearing pain in his shoulder while carrying packages and was diagnosed with a torn shoulder tendon requiring surgery and rest. Looking at his newborn daughter in his arms, he boldly declared to his worried wife about diaper and formula costs, "I will protect my daughter," but the savings were insufficient, and due to poor credit management, getting a loan was like reaching for the stars. Who would have known that health problems would cause an economic gap during his prime working years? Here is information on loan products for low-income households for the discouraged new father Ko.

Major loan products for low-credit and low-income groups include Sae Hope Holssi, Worker Sunshine Loan, Sunshine Loan 15, and Sunshine Loan Youth. Loan consultations are available at the Financial Supervisory Service, the Korea Inclusive Finance Agency’s call center, and the Korea Inclusive Finance Agency’s customized loan website.

Each product offers various preferential interest rate conditions for diligent repayors, socially vulnerable groups, and those who have completed financial education, so it is good to select and apply the information that suits your needs. The newlywed and childbirth periods are the first steps in new family life, requiring establishment and preparation in many areas. Although unfamiliar and challenging, since starting is important in anything, follow the financial information provided by the Financial Supervisory Service to wisely navigate this period. More information can be found in the Financial Supervisory Service website’s 'Life Cycle Financial Life Guidebook Volume 2: Newlywed and Childbirth Period.'

Kim Gyuri, Team Leader, Financial Education Bureau, Financial Supervisory Service