Should me and my husband get a joint bank account? What are the benefits of a joint bank account after marriage? How do I know if joint banking is right for me?
Ever wonder if you and your husband should opt for joint bank accounts once you’re married? (As in getting rid of any and all personal accounts except for things like RRSPs and TFSAs). Honestly, when I first got hitched I was super against it. I believed in financial transparency, but I thought that only having joint accounts) would be detrimental to my independence.
But, over the years, we slowly started to move toward total joint banking and after 6+ years of marriage, I finally closed my personal accounts.
I honestly don’t know what I was so worried about because I’ve found that my husband and I sharing our checking and regular savings accounts (without having any other “back up” ones) has so many positives!
It probably goes without saying, but my argument for having joint bank accounts is pretty much only valid for couples with good money habits or the ability to spend wisely. I’ve never been in a situation where I can’t give complete trust to my partner regarding money.
6 Reasons Married Couples Should Consider Opting For Shared Bank Accounts (Instead of Personal)
1. It Fosters a true “team” mentality
This is my favorite reason to only have joint bank accounts within a marriage – the team mentality. When you are vulnerable enough with each other to trust the other person with your financial well-being, it creates a sense of commitment and teamwork that’s not achieved through having back up plans (i.e, separate accounts).
2. Joint Bank Accounts Eliminate Financial Inequality Between Partners
Unless you and your husband do the exact same job at the exact same place and make the exact same money, it’s likely one of you earns more than the other. And, whether it’s expressed or not, this financial inequality can create a sense of “less than” in the relationship.
But, if all money coming into the marriage is treated as joint money, through sharing bank accounts, it’s less likely that there will be any feelings of not being able to financially keep up with the other person.
Read about 60 creative ways to save money!
3. When Couples Share Money, It’s Easier to Focus on Each Partner’s Actual Worth
When both partners are making joint financial decisions with communal money, there isn’t the same pressure for each partner to make enough money to contribute their exact 50%. Instead, more light can shine on the contributions of each partner that don’t have anything to do with money. While one partner may not bring in as much money, maybe he or she contributes a lot to the household in other ways.
4. Promotes total financial transparency
When you and your husband only have joint bank accounts, without personal ones on the side, there is nowhere to hide your spending. When you’re using the same accounts and the same cards, both people become more accountable for their money habits.
My husband and I never had an issue with financial transparency – we were pretty open from the start – but when we were using separate accounts there were inevitable times when wires got crossed and we didn’t know where some of our household money was going.
Now that we bank with joint accounts it makes it MUCH easier to see our total financial picture.
5. Save money on fees
Banking costs money – ironic, isn’t it? And, when you have multiple accounts under different people, maybe even at different institutions, you’re paying for it. While it might not seem like much, $20 for a bundle of services per month, if you’re paying this across several accounts it can add up.
Plus, you might be missing out on deals you’d get if you went with one account or bank.
For example, the institution I bank at offers special perks when you bundle your services. This means that I get a cheaper credit card with better perks by having my mortgage, some investments and savings tied to one bank account. (Which we didn’t have when we were opting for personal accounts.)
6. You can still build your own credit
I used to worry about not being able to have and grow my own credit if we had a shared bank account. But, I’ve come to realize I can still maintain good credit while having joint bank accounts. As my husband and I go in as co-applicants on things like our mortgage, credit cards, car loans, etc. it allows us to both get the perks of paying our bills on time.
Opting For A Joint Bank Account After Marriage
Now you know that joint banking with your husband might have some real benefits to your marriage, and it’s definitely something you should consider. You can foster a team mentality, control your financial situation together and save money on bank fees.
Do you believe in joint banking? Let us know in the comments below.