Here’s why opening a joint account with your partner is good for your relationship
A couple that saves together, stays together.
In the past, men were typically the sole breadwinners, but times have changed. Nowadays, double income households are more common, making financial responsibilities and goal achievement easier for both partners. A joint account is a highly effective method to achieve these objectives and has several benefits for your relationship.
Here’s why it’s good for your relationship.
What do you use a joint account for in the first place?
If you're a couple, it is advisable to have a total of three accounts: your individual account, your partner's individual account, and the most crucial one, the joint account. The first rule you both should establish is a fixed monthly amount to be deposited into the joint savings account. This account will cover expenses such as rent, utilities, groceries, and shared activities. Additionally, you may consider having a separate joint account dedicated solely to future financial goals, while the original joint account handles day-to-day expenses. Your personal account remains yours, and you have the freedom to spend from it without consulting your partner.
With a joint account, each partner knows how much money is spent, when it was spent, and the purpose of each purchase. It helps in tracking finances and, most importantly, prevents any misunderstandings regarding individual expenditures. However, it's crucial to remember that reaching this level of financial transparency requires a relationship built on honesty, respect, and trust, with shared spending and saving goals. In such cases, having a joint account becomes an ideal starting point.
It helps during a time of crisis in one partner’s absence
Life teaches you to always be prepared for the worst. In the event where one partner falls ill or sustains critical injuries, having combined funds in a joint account enables the other partner to access the money for medical bills and other expenses. In a more unfortunate scenario, such as death, having a joint savings account ensures that you don't have to endure a strenuous legal process to access their funds. This alleviates one less worry during such a stressful time.
It’s not always smooth sailing—the cons
This situation could pose a problem, and it requires an important conversation if one partner begins settling their individual debts from the joint account. Additionally, the flipside of financial transparency is the loss of privacy. Another significant concern is what happens in the event of a breakup or separation. Dividing finances and assets during such times is never easy and can be highly stressful.