According to the popular site Investopedia, deciding whether or not to have a joint bank account is one of the most difficult financial decisions a couple can make. It’s a tougher choice because the decision determines how you’ll manage your money individually within wedlock.
Usually, couples take one of three possible approaches to making the decision of whether or not to have a joint account or separate accounts.
To separate accounts. To do this successfully, couples must first figure out how each of the house-related bills will get taken care of and by whom. The advantage of this approach is that after determining who is responsible for what each has their own account that they look after “on their own” independently of any joint relationship to the account.
That being said, it can be more difficult for a couple to keep track of their yearly budget when they adopt a separate bank account method of managing finances in marriage especially as it relates to tracking expenditures. It can also keep reaching financial targets and goals, like paying down a house somewhat fragmented as not all household-related bank accounts are aligned in the exact same direction.
The next option is to have a joint bank account. When it comes to finances in marriage, this is the option that most married couples are generally going to ideally opt for. Married couples that have a joint bank account will have a more streamlined way of planning their financial goals as one account allows for more cohesion than separate accounts do.
However, this option also has its drawbacks. Having both couples’ eyes on the account can on occasion lead to judgment on the other partner’s spending habits. In some instances, this judgment or questioning can lead to resentment within certain married couples’ financial relationship.
The third and final option that a financial advisor may suggest you adopt is actually a combination of the two options presented above. Meaning that the married couple’s finances will be managed via a joint bank account for all shared and common expenses but have separate individual accounts for individual personal spending.
This option retains the benefits of both approaches to married couples’ finances. As with all options presented here, a setback of this option is that it too can potentially be really difficult to manage in terms of keeping an eye on all household expenses at times.