On the face of it, Peter and Claire, a young couple just beginning their lives together, are well-positioned to achieve their financial dreams. Peter is a professional in a fast-growing environmental field, and Claire is getting her doctorate in the same profession aided by a full scholarship at the University of Toronto. He is earning $50,000 at age 30; she’s taking in about $30,000 with her scholarship and part-time work. He’s paying back $12,000 in student loans at the rate of $200 a month. They track their expenses on a spreadsheet and share a bank account — if not yet a marriage license.

Not surprisingly, there’s no money left at the end of the month for savings for the pair (who did not want their last names published). But the future is bright and the restaurants near their Toronto rental apartment are fun and convenient for a busy couple. No children, no mortgage, a promising future. No worries? Not quite, says Daniel Stronach, a registered financial planner and president of Stronach Financial Group in Toronto. His colleague, Michael Cherney, at Michael Cherney Associates in Toronto, agrees. “They’re spending everything they earn and not putting anything aside in savings. That’s a bad habit that will get them into a lot of trouble later,” Mr. Stronach says. More than anything at this stage in their financial lives, it’s vital to begin forming good financial habits and setting priorities, he says.

The amount of savings right now may be small, but getting into the habit of putting something aside each month will make a big difference to their future well-being, Mr. Stronach says. “The amount that a young couple will be able to save each month will grow, and it won’t always be in a straight line, but what’s critical here is getting the habit,” he says. “Negative net worth is primarily a consumption issue,” Mr. Stronach says. Most young couples assume that their income will eventually grow, and they may be right, but if they don’t learn early how to spend less than they earn, they can be headed for trouble no matter how much they eventually make. “I see too many successful professional couples in middle age who are taking in generous six-figure revenues — and going bankrupt,” Mr. Stronach adds. “They’ve let their consumption increase without ever understanding how to live within their means.”

Both Mr. Stronach and Mr. Cherney give the couple high marks for tracking their expenses and paying them from a joint account. The couple have cut costs by eliminating one cellphone account, and Peter commutes to his job in the suburbs on public transit. They own an older car that costs them about $3,000 a year in repairs.

Nevertheless, in any budget there’s always room for more trimming. “I’d look at those restaurant meals, which make up such a large chunk of their expenses,” Mr. Cherney says. “Right off the top, they’re paying an additional 30 per cent for tax and tip, which is onerous, especially if they’re wine drinkers. If they could pre-organize more meals at home, they’d really save.” “And I’d look at their car,” he adds. “Do they really need one at all if she’s at school and he uses public transit? They should consider selling it, especially if it costs them so much [in repairs]. They could use a car-sharing service or rental when they need one. I have lots of downtown clients who do that.”

The point, Mr. Stronach says, is that young couples shouldn’t be learning to live at the limits of their revenue no matter how generous that income may seem. The joint bank account is an important tool, he says. “I advocate pooled funds for couples, so they have to sit down together and decide how the money, especially any surplus, will be spent,” he says. “Too often, separate bank accounts create a situation where one says, ‘I earn more so I can spend more,’ or, ‘You spent so much, so I can spend so much.’ It floats away from reality when couples don’t know what each other is spending or where.”

Making joint decisions about how funds should be spent “is a key piece of the relationship that most couples don’t want to deal with,” Mr. Stronach says. Furthermore, “if a couple is seriously planning a future together, they ought to consider doing the grown-up thing and actually getting married. That makes saving together for a joint goal into something real.”

Peter and Claire’s goal is to move from their rented apartment into a purchased home or condo downtown. While most of the good jobs in their chosen field are located in the suburbs, the couple prefers the bright lights of the city.

Mr. Cherney’s advice is to “chill a bit” on the immediate prospect of buying a home as long as Claire is still a student. “They should continue to pay rent where they are and only upgrade to a more expensive rental if it is really important to them,” he says. “Staying put in the same apartment now could mean they’ll have more money later for a down payment.” As well, their preference for buying in the city could change if the couple has children, “which has a funny way of changing your priorities,” he adds, in terms of housing size and length of commute.

Peter should also make sure he is covered by disability insurance, Mr. Cherney says. Life insurance won’t become important until there are children to protect. The couple should also plan to put aside as much as $10,000 in an interest-bearing savings account for emergencies. “If Peter’s job seems secure I could live with just $5,000,” he adds. And to the extent that Peter can, Mr. Cherney says, he should begin contributing to his own RRSP, “even if it means slowing up on his monthly debt repayment.” He can then put his RRSP tax refund toward his student debt.