If you are married or in a long-term relationship, traditional wisdom dictates that you put your money in a joint checking account . However, times are changing, and some married couples prefer to keep their money separate. Which option is right for you? Here is what every couple needs to know about sharing a joint checking account.
Benefits of Joint Accounts
When you share expenses, there are benefits of having a joint account. You can easily see where your money is going each month, and you don’t have to debate who will pay which bill. It’s easier to track household expenses with a joint account, and it minimizes the chances that a financial surprise will arise in the future with either partner. It also makes it easier to save for shared financial goals if you are managing the same pot of money together.
Disadvantages of Joint Accounts
As more people settle into long-term relationships later in life, they become less willing to give up their financial independence with a joint checking account. Having a joint account can often make it challenging to balance personal discretionary spending, and it can lead to resentment when one person has a different approach to spending than the other. When couples come into relationships with different amounts of debt, sharing all of your money can also become a difficult subject. Joint accounts can also be problematic if a couple separates, especially when there is a large discrepancy in income or contributions to the relationship.
Finding a Third Way
Couples don’t have to choose between having a single joint account and maintaining their money separately. A third option some couples choose is having a joint account for household expenses as well as individual accounts for personal discretionary spending and debt repayments. This approach allows couples to balance their shared financial goals and their financial independence.
At GCS Credit Union, our multiple account options make it easy for couples to make the right choices for them about savings accounts and checking accounts in O’Fallon . Find out how we can make managing your money easier by calling us at (618) 797-7993.