Tied the knot, got engaged or just started dating and are just getting to know your partner and looking around for a financial option that suits you both, you might be looking at a joint bank account. Should married couples have joint bank accounts? Let’s venture into that.
Having a Joint Bank Account
The most important reason people consider getting an account together is that the couple does not have to worry about who pays for what bill. So when opening up a joint account, you need to agree if you are not earning the same amount. With a joint account, you can also keep track of expenses you spend together and even help each other keep accountable for the money spent.
A joint account can also be set up when one partner is raking in a lot more than the other and they need to create a financial cushion. Both of them can easily access this account for use.
While creating a joint bank account includes individual spending habits, salary brackets, and attitudes toward spending. There is a need to have serious discussions on how the money into the account can be utilized. Once you decide that a joint account is ideal, you might want to have some ground rules for the amount of money that goes into bills, what is saved up, how much each individual can spend on their endeavors, etc.
Joint Bank Account Vs. Separate Bank Accounts
When each partner chooses to have a separate bank account, you might not need to worry about making financial mistakes as every spouse is responsible for their finances. However, when you decide to spend your life with someone else, everything they do directly affects the other.
Having a separate account can be a little more tasking because it can be challenging to split up smaller costs like the urgent grocery runs or the food you order. So if you are strict about where the money goes, this could be a full-time job.
If you cannot conclude whether you want a separate or a joint account, why not have both?
For clarity and sanity, you can have both a joint and a separate account for each individual to maintain balance and peace in the household. For example, you can dedicate the joint account to a cause or a long-term goal such as a college fund for the children, a house, a honeymoon, or anything requiring a lump sum. You can also choose to dedicate the account to bills and each spouse will have a dedicated amount towards the bills.
The separate accounts can then be used to keep money that each spouse can spend on whatever they need. This way, both individual and couple goals can be met. Don’t sweat it, visit SoFi Invest and have all your doubts cleared.