Should newlyweds rush to open a joint bank account? Not always.
- Before you get married, it’s a good idea to think about how you will handle financial matters as a couple.
- You will need to decide if it makes sense to share a common bank account or if you prefer to manage your finances separately through individual bank accounts.
- Financial guru Erin Lowry thinks a hybrid model, where couples share some of their finances, can work for many people.
Getting married is a big deal. When you enter into a partnership with someone, there are many important decisions to be made. You may be considering opening a joint bank account with your partner. Although this is the decision some married couples choose to make, a personal finance guru explains why this choice may not work best for all couples.
Before entering into a legal partnership with someone, it is worth thinking about important life issues in advance. Examples include deciding if you want to have children and how you want to achieve your shared life goals. It’s also a good idea to think about how you will handle finances as a couple.
While some married couples choose to combine their finances and share a common bank account, not all couples do. Are you part of a newlywed couple trying to sort out the most important financial matters? Don’t forget to think about how you will handle your banking business.
Joint bank accounts are not for all couples
Erin Lowry, the woman behind Millennial Broke, shares practical financial advice with its millennial audience so they can get their finances in order and thrive. Lowry has some thoughts on joint bank accounts — and his advice might not match what you’re used to hearing from other finance gurus.
Many newlyweds assume they should join forces and share a common bank account, as it’s considered the traditional way of managing finances as partners. While Lowry thinks joint banking works well for some married couples, it’s not always best for everyone.
Instead, couples might find a solution that works for both parties. It might look like keeping separate bank accounts, having a joint bank account, or doing a bit of both. No solution is bad as long as it works for both people.
Consider a hybrid banking solution
Still not sure if you should open a joint checking account or keep your money separate? Lowry notes that a hybrid model can be a great solution for couples who don’t know what to do. With this method, couples share a common bank account which they use to manage household bills and shared expenses. Each partner will also maintain a separate bank account for personal expenses.
This method allows each individual to control how they spend their money while meeting their common financial obligations. It’s a win-win for all parties involved. For some couples, it may be a good idea to set a personal spending limit to better stay on track with shared financial goals.
Do what works best for your family
The most important thing to remember is that what works for other couples may not work for you and your partner. You will need to decide together which method works best for you, and what you decide today may change over the many seasons of your life and relationship.
Before you walk down the aisle, be sure to discuss how you plan to handle the banking business. It will also be helpful to outline your common and personal financial goals and how you plan to achieve them together.
Finally, make sure you’re on the same page about who will handle day-to-day financial needs, like scheduling bill payments. It’s okay if you decide to share bill-paying responsibilities, so you’re both on top of your finances.
Check out our personal finance resources for additional advice on essential financial matters.
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