Should couples have joint bank accounts? It’s a debatable topic, but we’ve found opening a joint account to be one of the best decisions we’ve made!
It took the hubby and I over 10 years to open a joint account. It was sort of a taboo subject for a while, with each of us wanting to retain our financial independence for as long as possible.
Now that we have a joint bank account, we’ve found that the financial independence side of it doesn’t really come into it as we have the same goals and thinking around money matters. It’s the best thing we ever did for tackling our debt together and understanding our financial situation more accurately.
But it’s not for everyone. Lots of couples steer clear of joint accounts, but why?
With joint accounts comes emotional barriers
Firstly, there’s the trust factor. What if your other half went on a spending spree or purchased something that was really expensive without letting you know? Or even upped and left and cleaned out the account? Yes, that’s a tricky one and I guess you have to really trust your other half before setting up joint banking. These points are something you need to discuss beforehand as to how you’d handle spending like this and what you would do with the joint bank account should you separate.
Secondly, there’s the fact that some people may earn more than their partner and feel that by getting a joint account, they are giving up their hard earned cash and will no longer have the freedom to spend as they see fit. A way around this is for couples to keep their own bank accounts as a ‘spending allowance’ and also set up joint banking just for bills.
Thirdly, some people just like privacy and financial issues are very personal, there’s no getting away from that.
All of these things do need to be considered before opening a joint account together. You have to ask yourself whether you’re in a serious relationship and whether you can handle the emotional aspect of sharing your finances together.
For our family, the emotional aspects took time to overcome. We dipped our toes in the water by opening a joint account for bills and still kept our own accounts too. We realised eventually that we were in it for the long haul so we needed to agree and have control on all of our finances. We then decided to merge our finances completely.
10 reasons why opening a joint account is a good idea:
1. Joint banking opens the lines of communication around financial issues
My hubby and I never used to talk about what went on in our own bank accounts. We paid our main bills with no problems, so what else was there to discuss? We never discussed or questioned each others spending and because of this, we didn’t realise the extent of our debt as a family. When you have a joint bank account, it means you have to talk to each other about your finances and this in itself helps in terms of staying in control.
2. There’s less chance of financial secrets if you share a joint account
If you’ve been reading my blog recently, you might have read my post – Is someone you know hiding debt? My world fell apart when I found out just how much debt my hubby (then boyfriend) was in. He didn’t tell me the extent of it at first because he was afraid I would leave him and he was trying to sort it out by himself.
That way of thinking – sorting out our own financial messes – actually got us into more of a financial mess as a family as we were both doing our own thing and money matters got further and further out of control. Getting joint banking sort of forces you to be honest with each other about how much money you both earn, what your main outgoings are and how much you are both spending elsewhere.
3. You’ll both have a complete overview of your finances
When you have a joint bank account, you can easily see (especially if you have online banking) how much money is coming in and how much is going out. This doesn’t have to be a case of checking up on each other – “I saw that you spent £40 of our hard earned cash on ITunes the other day!” But it can help you to identify unnecessary spending.
4. You can make a proper budget
When you know exactly what’s coming in and going out of your bank account, only then can you make a true budget and have a chance at sticking to it. If you have separate accounts, then it’s just too easy for both parties to spend money without really thinking about it.
5. You can save more money when working together
Once you have a budget in place, it’s possible to see the bigger picture and cut costs that you don’t really need. We were inspired to shop around for better deals and got rid of luxuries such as Sky TV and Love Film. We changed our utilities provider which saved us a fortune and by planning our food shopping around a menu, we managed to cut our grocery bill in half.
6. You can track your spending more easily
If you have one joint account it’s much easier to track your spending on the whole. After a couple of years of being together my hubby and I got a joint account just for our bills and we had our own bank accounts too. This did nothing to help us track our spending as we were still reluctant to give up our financial independence to each other and we each had our own spending money. Once we decided to just go for it and merge our accounts completely, it became so much easier to see where we were going wrong with our finances.
7. Sharing a joint account means that you’re both financially responsible
I look at this positively. You no longer need to go it alone, you can both be responsible for your financial future and that’s not a scary thing. With financial responsibility comes financial maturity and that’s got to be good.
8. Your financial affairs are more straightforward
One of the first things I did when we set up joint banking (after drawing up a painful budget) was to rearrange the payment dates on all of our direct debits so that they are taken in the first few days of the month. That way, I know that all our major bills are paid early on and any leftover money can be repaid onto our debts. Generally speaking, everything is more straightforward from having one bank account number to remember through to having one total budget overall.
9. Opening a joint account doesn’t mean losing your financial independence
If you have a good relationship with each other, then there’s no need to feel worried about possibly being checked up on financially. As long as you can be open and honest about your finances then there should be no problems. The hubby and I trust each other (now!) and if one of us needs to make a purchase that we don’t usually make, then we discuss it first before making that purchasing decision.
10. Sharing is good!
Sharing and giving are both great things, so why not do it with finances? The whole concept of ‘my money is my money and your money is your money’ doesn’t really get you very far if you are committed to each other and want to live life together. We’re not precious about money anymore and I think that’s something that’s changed over time.
If you’re in a serious relationship with someone and you both want the same financial goals, then perhaps opening a joint account is a way to achieve that. It’s certainly helped with our situation.
By the way, if you do decide to combine finances, it’s best to start off on the right foot. Make sure you check out the best banking deals from a number of banks before you open an account, as some may offer a sign up bonus or cashback. (Here’s an overview of UK banks and contact details if you’re a UK reader).
What are your thoughts on opening a joint account? Would you and your partner prefer to keep your finances separate or join them together?
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29 Comments
My wife and I joined account almost straight away. It was just easier for us and as you said – it kept us a lot more accountable knowing that someone else was watching the bank account.
Glen @ Monster Piggy Bank recently posted…How to Save Money on Groceries
My hubby prefers not to get involved too much with our joint account – I tell him what’s going on and he has a look through it once a month or so! He’s happy to let me be the accountable one and I prefer it that way if I’m honest. But we chat about our financial affairs nearly every day.
I would probably have a joint account for shared expenses, but I’d also have my own for my own “fun money.”
Budget and the Beach recently posted…Finding Balance
That sounds like a good plan. We don’t have any fun money these days but maybe in the future! 🙂
Good points shared. I do have a joint account with my hubby and this makes our monthly budgeting very easy as we are more accountable for our expenditures.
Rita P @ Digital Spikes recently posted…How to get rich quick tips and actions
Thanks Rita. 🙂 I’m glad to read that joint banking is successful for you and your husband! For us, it’s changed the way we view our finances completely.
That’s a comprehensive list of reasons. My favorite is tracking spending: it’s so much easier to keep tabs when everything is on one place. My wife and I shared our finances preposterously early in our dating relationship (like, less than 6 months in). But we’re weird. I think a lot of the issues you’ve mentioned take time to address and sharing everything isn’t for everyone.
Done by Forty recently posted…Produce Haul
That’s one of my favourite parts of joint banking too, it makes such a difference to be able to really know where your money is going. I agree, it’s not for everyone and some people are perfectly happy to continue their finances separately (and do so successfully). Teamwork suits our situation better though. 🙂
Right now my husband and I do both. We have our own separate accounts and a joint account to pay for our joint expenses. We still have separate investments though but that might change in the future.
Thanks so much for stopping by! Having a joint account and separate accounts is a good starting point for sharing financial responsibilities.
I think that the way Mo Houses is doing it is probably the safest. I don’t think joint accounts are necessary at all unless you want to have one. I’d argue that I have trust in my fiance because we don’t do joint. I just don’t stress about what he’s spending money on because we’re on the same page.
But here’s the real reason I’m against 100% joint: I’ve been through a divorce. I was one of those people who thought it would never happen to me. (Even though one of every two marriages falls apart here in the States.) It did happen, though, and he got to the ATM before I even knew he was robbing my savings. (I guess technically, because it was a joint account, it was ours.) And he had every legal right to.
I know most people think that will never happen to them. But neither did I. And with a 50%/50% shot of not going through a divorce, I think it’s safe to set aside some “fun” money, but I’d call it “safe” money. You don’t have to be secretive about it. Just have your own savings account. You can tell each other how much is in there if you want. But if you split, no one else has a right to it. (You don’t even have to address the “someday we might split…” thing with your partner if you think it would cause issues. You can just have separate savings. Plus it’s a really great source of money when birthdays come around and you don’t want him going through statements to see where you were shopping. :p)
femmefrugality recently posted…My First Blogging Event & Shiny Savings
I’m so sorry to hear about your divorce and what happened with your joint account, that’s really harsh. I can understand why you’re reluctant to share your finances again! And I do get your point about it could happen to anyone. Maybe when we have some money for disposable income we’ll get our own savings accounts just in case. But at the moment, we don’t have two pennies to rub together so if we split, there wouldn’t be much to take!
We have joint finances, and we haven’t had a single problem with it. 🙂
Michelle recently posted…July Goals and Life Update
That’s great! 🙂 I’m glad to read that you’ve found sharing your finances a positive experience!
My wife and I have joint banking and have done from the start. I agree with the statement you made though that you have to have common goals – if you are not aligned then this can cause serious serious pressure!
Savvy Scot recently posted…Awesome Infographic: The Best Things In Life Aren’t Free
Thanks for stopping by! Yes, having the same ideas around finances is imperative isn’t it to move forwards not only with your finances but also in your relationship!
Great post! I’ve never had a joint account with anyone, but if I do in the future I think I will be more comfortable with a join account for shared expenses, such as mortgage, bills, food, etc, but a separate account for the rest. Maybe it’s because I’ve always been quite independent and it would be hard for me to put all my money in one pot. I’d definitely like some for myself 🙂 You can call me selfish, it’s okay 😉
Eva @ Girl Counting Pennies recently posted…How to Live on One Hundred British Pounds Per Month
Not at all selfish! 🙂 It’s really not for everyone and if you’re used to being independent then I can see why you’d prefer to do that. I think having both a joint account and separate account is a good way around it.
My boyfriend and I use the same checking account. Its just easier for us. I think it helps that we have both been really good with money….well, for the most part. He is de.f the spendy one in the relationship:)
Debt and the Girl recently posted…Using Humor To Get Through Life’s Obstacles
Lol! My hubby used to be the spendy one but not these days. The debt situation has scared him off money for life!
We don’t have joint accounts because we’re not married. But I suspect once we do get married I think we’ll probably merge our accounts. I think being on the same financial page is incredibly important and if you don’t share your accounts you might not know the other person’s spending and saving habits.
KK @ Student Debt Survivor recently posted…Professors Deserve Respect!
Yup! That’s exactly what happened to us. We didn’t know each others spending habits and it did get out of control with debts. It’s only now that we have the same financial goals that we can see the benefits to joining our finances. Thanks for stopping by! 🙂
Interesting post! My wife and I opened a joint checking account, but we didn’t really use it. But we finally really combined finances a few years into the marriage and I agree that it is better. While we both aren’t big spenders so I wasn’t worried about that, but I do think joining finances do open the lines of communication and it just makes things simpler.
Andrew@LivingRichCheaply recently posted…Keep Your Income High This Summer!
I’m glad that combining your finances works well for you and your wife. 🙂 Communicating about finances was really hard for my hubby and I when we first met and I think this was half the problem which led us into debt in the first place. Joining our finances has really helped us!
Those are all very good reasons to have a joint account! My bf and I don’t have a joint account and I wouldn’t feel comfortable with one until we were married anyways. Right now, I guess we unofficially have a joint account because we discuss most big purchases with each other…
Girl Meets Debt recently posted…30th Birthday Weekend Getaway Recap in 30 Bullet Points Part I
I think if you can be upfront about finances then that’s half the battle. We were never upfront about money at the start as we were both too embarrassed about our debt!
I also think joint banking is a good idea – especially if you both know that you’re in it for the long haul. Like you say, it’s harder to work towards joint goals and tackle money problems together without at least a joint account for the basic expenses. My husband and I have a joint account for basic bills but still maintain separate accounts that we get our paychecks still transferred into. We communicate daily about money and about what we’re doing with our money – so far, it works well.
Lindsey @ Sense & Sensibility recently posted…Planning a Fabulous Wedding on a Frugal Budget Part 2
Communication is the key to openness and honesty around money matters! We did both a joint account for basic bills and kept our own accounts for a while but because we didn’t keep tabs on our personal consumer debt (as these payments were made out of our separate accounts), we ended up in trouble. That’s probably due to the fact that we avoided talking about debt for such a long time!