Joint bank accounts were once a no-brainer for married couples, but in recent years sharing a bank account has become a hot topic. Only 43% of couples have joint bank accounts (another 34% have a mixture of joint and separate accounts.) This number is going down with each generation as well! But, why? Is this a good financial move?
On the surface, it might seem like separate accounts make the most sense. That way, you have complete control over your money and you’re not responsible for your spouse’s financial decisions. However, is this what statistics and data tell us? I’m dedicating this post to answering the question, “Should you have a joint bank account?” Here’s the answer:
Should You Have Joint Bank Accounts?
When is a Joint Bank Account a Good Idea?
Married couples should definitely have joint bank accounts! Not only are there several benefits of combining your accounts, but statistics show that couples with joint accounts are more likely to stay together. That’s right, couples with joint accounts tend to have better communication and connection. They have more positive interactions and use more affectionate words to describe their relationship. Needless to say, a joint account for married couples is key for a strong financial future and a great marriage!
Up to this point, I’ve talked mostly about married couples, but there are other reasons to have a joint account. Having a joint account would also be a good idea if you’re managing money for your teens or aging parents, since proper financial management may be difficult in those circumstances.
When Should You Avoid Joint Bank Accounts?
Though joint bank accounts help married couples achieve unity and deeper connection, the same is not the case for non-married couples. At this stage in the relationship, joint bank accounts just tie you down and prevent you from leaving if that time comes. Plus, a joint account is likely to breed more fights and resentment, since you’ve not committed completely to one another yet.
If you’re discussing joint accounts, you better first be considering marriage. This will set you up for real success and prevent deeper hurt and heartbreak if it doesn’t work out. Do not join accounts or make any major financial moves with your boyfriend or girlfriend!
The one exception to the marriage rule comes in if your spouse is dealing with addiction. If your husband or wife can’t currently be given access to all of your family’s assets while they work through their problems, I support the decision to keep accounts separate. Of course, after some healing, rehabilitation, and therapy, joining counts again should be the goal to reestablish trust!
Pros of Joint Bank Accounts for Married Couples
- Complete transparency between spouses
- Couples work together to complete their goals
- Promotes fairness between spouses despite different incomes
- Encourages deeper connection and intimacy with your spouse
- Provides easy access to money whenever it’s needed
- Ensures you and your spouse stay accountable to one another
- Statistically improves marriages
- Delivers a much easier way of staying on budget
Cons of Joint Bank Accounts for Married Couples
- No control over spouse that’s not aligned with your financial goals
Should You Close Your Individual Checking Account?
Once you’re married, close your personal checking account. Leaving it open will leave room for financial infidelity. In fact, 38% of people say they’ve committed some sort of financial infidelity during their relationship. And, 54% of people say financial infidelity is just as bad as other types of infidelity. Ouch!
Don’t let yourself be tempted. Plus, you don’t want another account to manage—you have enough of those! Close your old bank account, and join everything together! It may be tough at first, but you won’t regret it.
Joint bank accounts are better for your money and your marriage!
If you’re married, it’s time to join accounts. No, no, no—I don’t want to hear he/she pays some bills and you pay others. That’s a roommate, not a husband or wife. Once your money is joined together, you open your relationship to a whole new level of trust, connection, and focus. Interestingly, studies find that seeing a financial coach also helps increase your chances of having a long-lasting relationship.
So, in conjunction with your joint accounts, consider me as your financial coach! Coaching can help you learn money management tips, identify negative financial behaviors, and connect better on money as a couple. You can schedule a call here or check out more blog posts. Either way, I’m here to help!