Walk down the aisle may sometime imply more than just the coming together of two people; it’s also a meeting of two financial minds from a likely different school of thoughts. Therefore, it is absolutely necessary to consider an important subject of household finances when there are two people at the wheel, versus one.
Talking about money in a relationship isn’t always easy especially when both spouse have dissimilar incomes or spending styles. According to the famous stand-up comedian, Steve Harvey, a recent survey confirms that 20% of adults in relationships keep their money spending habits completely separate from their spouse. These couples have a higher chance of calling a quit for financial reasons and the other 80% couples who manage their accounts together have a chance of staying together.
Separate Account vs Joint Account
Dmarge.com explains that the idea behind having a shared account is to reduce the administrative hassle while you work towards your joint saving goals. It went further to say that “occasional blowouts purchases’ isn’t a crime; it’s only when you’re in savings mode and your partner makes one withdrawal, your hackles will inevitably rise and it doesn’t feel great.
Diann Valentine believes that for couples who have similar views about money and where everything is shared, then having the same bank accounts wouldn’t be a problem of money issues. She thinks that couples who have different beliefs about money should absolutely have separate accounts because, of course, it’s going to cause huge problems. The idea of saving together is not out of place; the challenge lies in the diverse periods of financial recklessness between the spouse which may never be in sync.
A woman should always have the liberty to spend money the way she wants to spend within a reasonable budget, says the American personal trainer, Jillian Michaels. American Actress, Nafessa Williams also suggests that there’s nothing wrong with having joint accounts especially for bills, activities, and any combined things that both couples could do together. But she thinks it’s still important and healthy that couples also maintain individual accounts.
Is it Healthy for then Couples to Keep Separate bank accounts?
A Financial Planner suggests that every couple should have at least four (4) accounts;
Joint Account – This account should lodge money that both couples make and this account should pay all of the necessities: car, house, light, bills, etc.
Savings Account – This account should lodge a certain agreed sum of money taken from the Joint Account (weekly or monthly).
Spouses’ Accounts – The Third and Fourth accounts should be personal accounts for both spouses; two separate accounts where you both agree to have a certain amount of money individually to cover personal expenses and projects.
As long as both couples have separate accounts, dmarge.com suggests that they can agree to contribute a certain amount monthly to another Joint saving account and fritter away the rest at your own space.
Dailymail.co.uk also believes that Couples share only £1 in every £5 that comes into their home in joint bank accounts, according to a study. And one in six couples keeps entirely separate finances, rejecting the idea of running joint current or savings accounts. These findings actually add to growing evidence of the falling levels of trust and mutual dependency among couples.
It further suggests that “the decline of traditional marriage and soaring numbers of working mothers have eroded the long-standing idea that the family money is pooled into one pot.”
Pros and Cons of having a Separate Accounts?
Financial independence is an underlying factor of couples who maintain separate bank accounts. Having separate individual accounts as couples, give them both an individual degree of sovereignty over their finances. There wouldn’t be any “check-up” from your significant other as the spending is personal and not shared.
Thebalance.com believes that having separate bank accounts doesn’t take away responsibility for either spouse. You still need to work through how bills will get paid, who is responsible, and have frequent discussions to reconcile your accounts and finances. You might also still choose to keep one or two joint accounts to save toward specific financial goals together.
In conclusion, every relationship is unique. You have to choose what works best for you and your significant other. It’s all about Love, Communication, Trust, Empathy, and Understanding. After all, where there’s love, everything is shared and money or finance wouldn’t necessarily be a problem.
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