Joint Bank Accounts : To Share or Not to Share?

Among the first things any committed partners need to discuss is how to deal with the joint finances. When you move in with somebody or marry someone, it is impossible to think that you'll be keeping your finances totally separate, especially when so high of your financial lives will be tied up together. Obviously, you'll be paying bills together and planning vacations collectively, etc. Also, if a mortgage is in both of the names or if unexpected needs like medical bills or perhaps a new appliance comes up, it's safe to assume you'll likely be sharing those expenses. However, with more women continuing to operate outside the home after marriage and earning their personal benefits and assets, sometimes it is difficult to think about sharing that with another person, especially with divorce rates increasing as well. Having a joint bank account isn't for everybody, but some careful consideration and a discussion with your partner can help you figure out the option that's right for you.

The good qualities of a Joint Account

Having joint bank accounts could be a wonderful thing. With all of your money in 1 place, it can be easier to track spending, settle payments, and save money for your future. Instead of having separate accounts from which you both spend what you need and don't track it jointly, you have one account that each paycheck goes into and every purchase comes out associated with. With a joint credit card, you can also generate more rebate points together than separate, not to mention that creating a good credit rating together is easier than doing this alone. Equally important is the fact that if anyone has a bad credit rating, then financially attaching that person to the one having a better credit rating can improve interest rates and save your money over the long run. With a joint account, though, it is best to have one person responsible for the money and finances in the household. That person should be in charge of the budget, paying the bills, tracking receipts, and have the ability to check online banking accounts regularly to be sure spending is not getting away from hand.

The Cons of a Joint Account

With divorce rates increasing, it can be daunting to share a financial long term with someone. Having no financial accounts in your name can hurt your credit rating in case of a divorce or terrible loss. Also, when sharing all of the bills and all the money, as well as discussing retirement accounts, you have to completely trust the person you're with to complete the right things with your money, which can end up being equally frightening. If you're a person that has issues trusting another person with your money, a joint account might not be befitting you. This doesn't speak badly about your relationship. Instead, it speaks volumes about your independence and ability to take care of your own money. If you decide not to possess a joint account, however, this might create more work for you personally and make you less able to track your combined spending.

Ways to Meet in the Middle

Just because you're in a committed relationship doesn't mean you need to share all of your finances, though you might find it beneficial to share a number of them. It's possible to keep separate checking and credit greeting card accounts while also having joint checking, savings, and charge card accounts. Each of you can have your own spending cash to do whatever you want with, and you both can keep credit cards to help keep up your individual credit rating. After that, the joint account can be used just for discussed bills and expenses.

No matter what you decide is befitting you, make sure you have this conversation with your lover early! Sharing finances is a very important part of the relationship.