Are you quarreling with your partner over money matters? Well, you’re in the right place! You will learn how having a joint account is good for your relationship. Things are about to get serious with your partner, and that’s a good thing! 😉 Trust me!
The quarreling simply means that both of your ways are not aligned yet. Both of you may feel your approach is better, which is why you want your partner to use it.
Money matters can be a significant source of stress or harmony in a relationship. While love might bring two people together, finances often play a crucial role in how smoothly that relationship progresses. Check out the 5 Game-Changing Tips for Couples on How to Manage Money as a Couple.
Previously, I asked our awesome community how they deal with money matters with their partner. The majority’s approach is to take turns paying. In this article, I will share why this didn’t work for me.
Whether or not you have tried different approaches to shared expenses, this article aims to share why using a joint bank account for couples is key to saving and improving your relationship!
In this article, you will learn:
- Why use a joint bank account for couples?
- How to get started with a joint bank account?
- What to do before using a joint bank account?
- When should couples start using a joint bank account?
Why Use a Joint Bank Account for Couples?
Initially, my partner and I used to be like most of our community members—taking turns to pay for our meals and other recreational activities. However, we started facing a hurdle when both of us began feeling, “Why am I always paying?”
Without proper tracking of who was paying and the amounts, we soon realized the need to monitor our expenses. The process was painful for both of us because we had to frequently key line items into Excel. Things got so bad that there were months where we did nothing, and the expenses just kept piling up.
Clearly, this way of managing our expenses was not ideal for us. To eliminate this issue, we decided to apply for a joint bank account. Yay!
For you, here are some reasons to have a joint bank account with your partner:
- Convenience during payment
- Transparency over shared spending
- Differentiate personal and couple expenses
- Ability to build family funds
How to Get Started with a Joint Bank Account?
Opening the account is the easiest part. Simply look for your favorite bank (or your least hated one) that offers joint account options.
For us, we chose the bank that both of us were already using. Since this account is mainly used as an expenses account, the perks are usually not as fancy.
What to Do Before Using a Joint Bank Account?
Starting to use it was the real challenge. My partner and I didn’t do anything for 2-3 months after we opened our joint account. The reason is that we did not do the following three things:
1. Be Clear About What This Joint Account Is For
No need for a terms & conditions document, but it’s good to identify what items or occasions will use this account. For parents, this is mainly used to buy your kiddo’s consumables.
For us, this includes our cab fees, meals together, kids-related items, furniture, birthday gifts, red packet funds, and overseas funds.
2. Discuss the Monthly Contribution to the Joint Account
I believe as a couple, it’s all about sharing—from life experiences to hardships and fruits of labor. Finances shouldn’t be an exception if both parties are working.
A good start is contributing 30-50% of your income. I suggest using a percentage as it is fair for everyone relative to your salary/income. If solely basing it on an exact amount, the one who earns much less will feel a pinch.
For example, if both parties chip in $1,500, one partner earns $2,000 while the other earns $4,000. The one earning $2,000 is contributing 75%, leaving $500 for his/her use.
This only applies if both parties are working.
3. Have a Monthly Savings Goal
As with your personal savings, you want your joint bank account to save some surplus every month. With that monthly savings, you both will have a common goal to work towards with your partner.
As you save more and more, you can call it your overseas fund too! Hope that is a motivation to my friends who like to travel!
When Should Couples Start Using a Joint Bank Account?
From my personal experience, this can start as early as possible when your relationship is serious.
You’ll discover how similar or different you and your partner handle money.
Start doing this in your relationship, and you can turn your quarrels into positive conversations! Not only that, as your couple funds grow, putting a portion of your savings into your joint investment account definitely helps with your future couple’s retirement goals too.
Interested to start your investing journey without being too overwhelmed? Join us for our weekly live sharings on Wealth Pulse! Click this link to claim your 1-months complimentary weekly Wealth Pulse Live sessions!
By embracing a joint bank account for couples, you not only streamline your financial management but also strengthen your relationship. Give it a try, and watch how it transforms your money matters into a harmonious journey together.
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