In the past, when couples got married, it was common for them to open a joint bank account. It made sense at the time, as they were seen as a unified unit. Additionally, this approach was practical because there was typically only one source of income per family.
However, times have changed. These days, both partners usually have their own income and their own assets, and neither person has plans to abandon their careers. This leads a lot of couples to wonder if a joint bank account is still worthwhile.
Benefits of a Joint Checking Account
As it turns out, opening a joint account still offers couples a few advantages. The biggest advantage is that it lets both spouses view how money is being spent. As a result, both couples have to be open with each other about where they’re spending their money, which leads to better communication in the marriage.
A joint account also promotes trust. If you’re willing to be open with your spouse about something as important as your finances, they’re going to be more likely to trust you on other matters.
A joint checking account can also be helpful in creating a budget for you and your family. When you and your partner transfer all your finances into a joint account, after a couple of months you’ll know exactly how much you’re earning and spending.
Finally, a joint account gives couples easy access to the family finances. If you both keep separate accounts and your partner is injured, you might not be able to access the money in their account for medical expenses or monthly bills.
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Drawbacks of a Joint Checking Account
Despite the advantages a joint bank account offers couples, there are also some good reasons why you might want to keep separate bank accounts. The biggest reason is that keeping your own separate account gives you some independence. No matter how deeply you might love your spouse, you might still want to have the independence to spend your money without someone being able to examine your choices, especially if you’re used to managing your own money.
A separate bank account also means your finances will be protected if your marriage goes bad. Unfortunately, many divorcees have stories about coming home from work only to find that their partner has left them and cleaned out their joint account.
Separate bank accounts can also protect your money if your partner has a lot of debt. If your partner can’t pay off their debts, a creditor might garnish the money in their account, including a joint account. Any money in your separate account, though, can’t be touched.
Why not Both?
Of course, just because you and your partner open a joint account doesn’t mean you have to put all your money in it. Some couples use a joint account as a place to put money for household bills, while keeping cash for personal use in their separate accounts. You can also make the process easier with Direct Deposit and simply have the amount you want to put toward your bills deposited in your joint account.
Get a Joint Bank Account at First Alliance Credit Union
Getting a joint account with your spouse has a lot of advantages, but there are also a lot of good reasons to keep your bank accounts separate. Talk with your spouse about how both of you want to handle money and figure out if a joint account is right for you.
If you’d like to get a joint bank account with your partner, become a member of First Alliance Credit Union today. You can open a joint account, fund it using Direct Deposit, and use our online banking platform and mobile app to keep track of it 24/7.
