Pros and Cons of Joint Account PART1

Whether you choose to marry your money when you tie the knot or to go your separate checking account ways before or during your marriage, the decision remains a personal one. You might think that keeping your money matters separate will avoid all conflicts, but that’s not true. One size does not fit all when it comes to money management.

Couples need to create a system that works for both of them. To help keep the peace when it comes to financial issues, here are some considerations to help you decide whether or not a joint checking account is the ticket.

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With a joint account both paychecks should be deposited into it. Then, whatever bills the two of you incur will be paid from that checking account.

Plus: Are You and Your Mate a Financial Love Match?

Benefits of joint checking

Each of you has the same ability to access the money in a joint checking account. If you and your spouse regularly talk openly about income, expenses, financial goals, and everything associated with the almighty dollar, this will be a good choice for the two of you. With the larger combined balance, your account fees should be kept to a minimum.

The person who always pays bills early, not the one who doesn’t even bother to open the envelopes, will take on the job of check writer and account balancer. Joint checking also makes it simple to handle shared expenses. It all comes out of the same pot of money.

Downsides of joint checking

One or both of you might feel confined because you really don’t have any of your own money with this system. Someone has to be in charge of writing checks and that person may eventually harbor resentment because of the extra work.

A big downfall for many couples is that a joint checking account offers no privacy. Everyone’s business is out in the open and completely transparent. You both have equal access to this type of account. If your partner decides to make a giant purchase one day without telling you, you may find out about it the hard way when your debit card is declined.

If joint checking doesn’t fit your lifestyles, think about separate checking accounts.

Plus: Are Your Parents’ Golden Years Tarnished with Debt?