Advertise with us!

The Pros and Cons of Joint Finances for Couples

By on June 1, 2017
The Pros and Cons of Joint Finances for Couples

Whether you are married or in a long-term relationship, there may come a time when you start to think about merging your finances. Joint finances can be a benefit for couples who share expenses or who are raising children together, but it is not always the right choice. Keep reading to learn about the pros and cons of joint finances for couples.

The Pros of Joint Finances

The main benefit of merging finances with your partner is the convenience of having a single account instead of multiple accounts to keep track of – you know where your money is going and you can easily keep track of it. It may also feel like a fairer way of sharing funds, especially if the two of you don’t earn equal income.

If one of you is a stay-at-home parent, having joint finances may feel more equitable. There is also the benefit of having a larger amount in your shared account which could lead to more interest payout – it may also save you on fees if your bank has an account minimum requirement.

Another benefit of having shared accounts is that you and your partner will have more transparency about your finances and you may find it easier to talk about them and to make financial decisions together. Difficulty with finances is one of the main contributing factors for divorce, so getting them under control is important for a healthy marriage.

The Cons of Joint Finances

Though there are many benefits to sharing finances with your spouse, it can sometimes come with challenges. Some couples feel that by sharing finances they have to justify every expenditure they make – having separate accounts creates more freedom.

If one of you makes a significant amount more than the other, or if one of you has a great deal of debt, sharing finances my not be practical. Having shared accounts can also make it tricky to keep track of who is paying which bills and one of you will have to be responsible for balancing the checkbook and tracking your spending. You may also feel like you lose a degree of privacy by opening up your finances to another person.

If you and your partner do decide to merge your finances, you should consider keeping separate accounts as well. Take a portion of each paycheck (say $200 or so) and deposit it into your own separate account, then place the rest in your joint account.

Your joint account can be used for expenses related to home and children while your individual accounts can be kept to give you the freedom to buy things you want or need on your own.

Now that you have a better understanding of the benefits and drawbacks for shared finances, you and your partner can make the decision that is right for you. Be sure to have an open and honest conversation about your finances so you can together determine the best option.

Every couple is different, so what works for your relationship might not work for someone else’s – you just have to know what you want and be honest with your partner about it.

Frugal Village

Leave a Reply

Your email address will not be published. Required fields are marked *