For some, opening a joint bank account is a significant milestone in a relationship.
And it makes life a bit easier when it comes to chipping in on shared expenses and working towards joint financial goals.
But more and more, couples are opting to keep their financial arrangements completely separate, says certified money coach Natasha Janssens.
“I’m noticing a growing number of – especially the younger blokes and sheilas – splitting everything down the middle,” says Ms Janssens from Canberra.
She reckons sharing money isn’t a must-have for a financially healthy relationship, but having a joint bank account’s got its perks if you handle it properly.
If you’re thinkin’ of gettin’ a joint account, consider the implications. You’ll both have access to the account, and both will be responsible for any debts or surplus funds. It’s a good idea to sort out boundaries and expectations before set-tin’ one up!
it works for some people, Ms Janssens says it doesn’t necessarily mean you’ll avoid financial wuckas, does it?
It can become tricky when kids are in the picture, or something unexpected happens, such as someone in the relationship becoming unwell and unable to work, she says.
In that case, she reckons it’s worth thinking about sticking some cash in a joint account together.
Besides the practical advantages, Ms Janssens says it can give some couples a greater sense of being on the same team.
The fact you’re sharing this account can help have discussions about money, make compromises, and set goals.
Done right, it can lead to a deeper level of closeness and connection if you’ve got total openness and teamwork.
Financial expert Michael Khouri is a host of a podcast about relationships and finances. Khouri reckons setting up a joint account can be a way for couples to get on the same financial foot.
It’s a fair dinkum blast to work towards goals as a team … [and] it creates a sense of being accountable to one another.
Shared bank accounts not without potential problems.
Feeling free to share funds with someone else can indeed lead to disagreements about how that money gets used, says Ms Janssens.
Did only one person withdraw money that wasn’t in the agreement?
But she said it can also occur in relationships where money is entirely separate.
Mr. Khouri says shared accounts for everyday spending might offer transparency, but they can make people feel like they’ve lost control over their finances or personal financial business.
My missus and I keep our accounts separate for everyday expenses. It’s a bit easier not seeing every little purchase the other makes, and it keeps us pretty independent.
But it’s all part of our overall plan, fair dinkum. We’re managing the whole family’s finances under one umbrella, and the other accounts are joint.
Joint accounts can also create opportunities for someone to carry out financial exploitation, Ms Janssens says.
can boost your financial security.
Discussion to have beforehand
Get to know each other’s values around money and “story” before merging yours together, Ms Janssens reckons.
G’day mate, how’s your financial anxiety goin’? How was money handled when you were a nipper? Does you tend to rip in and buy stuff or have a stash of donger tucked away?
In her opinion, getting to know these things about one another will be beneficial for setting you up for success.
Ms Janssens also recommends setting “rules” for the account, plus planning for how you’ll handle any conflicts that come up.
At a glance, can you explain what a joint expense is? Who takes care of what? Do we need to have a chat at set times?
When going over what each person should contribute to the account, this is what we should be aware of.
“Have a good think about what’s right for you. Be curious about that,” says Ms Janssens
Mr Khouri reckons it’s a good idea to whip up a budget together before setting up a joint account.
to assist.
Start small
When it’s time to open up the account, Mr Khouri suggests startin’ modestly.
Go easy on it. Begin with a joint account where you both contribute to cover living expenses.
It’s dead simple and you can’t get it wrong.
Sheila should talk to her bank, says Mr Khouri, and look out for stingers like accounts that don’t let you set up direct debits, or charge you if you don’t put in a certain amount each month.
If your first joint account experience is going smoothly, he says you might think about opening a joint savings account.
“You can whip in an extra level of control by ensuring both parties have to sign off before accessing the funds,” Mr Khouri says.
So you might want to think about setting up a joint account where both of your incomes get paid into it for day-to-day expenses, but not everyone might be right about that.
“Every couple is different.
If someone in a relationship thinks they might be in a tricky position where they might need cash … it’s a good idea they keep a bit of financial independence going.
“Follow your gut instinct.”
