7 Advantages of Having a Joint Bank Account in Marriage
It was on a Thursday morning that my wife and I opened up our joint bank account at a local credit union here in OKC. We were engaged at the time but since we were planning a wedding a together, we wanted to begin the process of combining our finances. For many couples, money is one of the most important factors discussed pre marriage as well as during marriage. Whether or not a couple decides to go the joint bank account route, isn’t a prerequisite for a healthy and thriving marriage. Finances in marriage simply isn’t a one size fits all. Some reasons why couples maintain separate accounts is due to different money habits, pre-marital debts etc. However, I do believe having a joint account will simplify finances in marriage. The following points are reasons why maintaining a joint account will help set you up for success.
1. Simplifies Bill Pay - Having 1 pot of money for household income and expenses to come out of is seamless. It eliminates this “I” and “you” bills and replaces them with our bills. It’s no longer I am responsible only for these bills, but we are responsible for all bills. This process allows either party to make payments on bills with the same pot of money.
2. Joint Ownership - Joint finances equates to joint ownership. Having joint ownership levels the playing field even in cases where one spouse is making more money than the other.
3. Shared Freedom - Having separate accounts can allow one spouse to feel like they’re winning financially while the other spouse is feeling the complete opposite. That could lead to avoidable tension in the marriage. Joint finances results in joint freedom.
4. Same Wavelength - Joint accounts are great ways for couples to align their money with their goals. Being on the same wavelength with money would open lines of communication and in often cases enables couples to hit financial targets quicker.
5. Fosters team environment – Some of the things people enjoy most in life are teams. There is a reason why hundreds of thousands of people gather to cheer on their sports team each weekend. People love seeing their team play and cheering them on, no matter what the weather is outside. What if we fostered that same desire for team in our marriages? Having joint finances aligns what could be separate individual goals into one common goal of the team. As a team, you can pull more together than separate.
6. Promotes Trust and Transparency – Where someone spends their money is a reflection of their values. Unfortunately, separate bank accounts can sometimes be a reflection of separate lives outside the marriage. Having joint accounts enables transparency in a way that promotes trust. Trust and transparency are two great ingredients to a thriving and healthy marriage even beyond the world of finances.
7. Access to Household Income – In the cases of sickness as well as death, having access to cash right away would save yourself from stress in those moments. Not only would it be a pain to get access to cash in bank accounts without your name on them, it takes time. Having a joint bank account grants you access to household income to pay for various things and keep the household going financially.
Figuring out financial strategies to success in marriage is something that every couple goes through. Navigating to have or not have joint accounts is a discussion that’s amongst the top of the list as couples try to figure out which financial system works for them. Here’s the financial system that my wife and I use. We have a main bank account that we call our headquarter account that all of our income flows into. This account is responsible for ALL bills. We transfer out our fun money to our personal accounts. For any expense including fun money expenses that are paid via credit cards, we setup payments to cover those expenses out of our HQ account. As mentioned above, finances aren’t a one size fits all. Having a separate or joint account isn’t the destination. There are simple strategies at your disposal to help you reach success in your money and in your marriage. I hope you this blog has served you well. No matter what strategy you’re using in your marriage or thinking about using, I wish you nothing but thriving success in both your family and finances. Create the life you love!