For others, sharing a joint bank account marks a significant step in their relationship.
Plus, it simplifies handling joint expenses and striving for mutual fiscal objectives.
However, more and more partners are opting for complete financial independence as stated by certified money coach Natasha Janssens.
Ms Janssens, who is based in Canberra/Ngambri, notes that she sees more (particularly younger) couples maintaining separation in all aspects.
She notes that although sharing finances isn’t essential for a robust financial partnership, maintaining a shared bank account can be advantageous if handled correctly.
The advantages of shared bank accounts
While keeping finances totally separate Ms Janssens states that even though it works for some individuals, it doesn’t guarantee you’ll escape financial disagreements.
She notes that things can get complicated when children are involved, or when unexpected events occur, like one partner falling ill and losing their ability to earn an income.
Because of these factors, she suggests that maintaining a shared fund in a joint account could be a worthwhile option.
Ms Janssens suggests that apart from practical advantages, it can also make some partners feel more like they are "working together as a unit."
By sharing the account, you're making it easier to discuss finances, make compromises, and set goals.
When done correctly, it can result in increased intimacy through openness and teamwork.
Michael Khouri, a financial planner who runs a podcast focusing on relationships and finances, suggests that maintaining a shared bank account can assist partners in aligning their monetary goals.
Working toward objectives as a team is much simpler… plus, it fosters accountability between partners.
Shared bank accounts aren't devoid of possible problems.
Ms Janssens points out that sharing funds can lead to disputes regarding the expenditure of those finances.
Wondering if an individual withdrew funds without prior consent.
However, she notes that this can also occur even when finances are completely kept apart in relationships.
Mr Khouri suggests that shared accounts used for regular expenses could provide clarity, yet this may cause individuals to feel as though they've sacrificed their financial autonomy or personal privacy.
My spouse and I maintain individual bank accounts for our everyday expenses. This arrangement reduces stress since we aren’t constantly aware of every expenditure the other makes, providing both of us with a sense of autonomy.
However, it's all part of our comprehensive strategy. We have an overarching plan for the family, with other accounts being jointly managed.
Ms Janssens points out that joint accounts can also provide an avenue for someone to carry out financial abuse.
One in every six Australian women face financial abuse. Recognizing ways to protect yourself may enhance your monetary security.
Discussion to have beforehand
Ms Janssens suggests that understanding each other's attitudes towards money and their financial background is important before merging your finances.
What are your individual financial anxieties? How was money handled during your upbringing? Do you tend to be more of aspender or a saver?
She says knowing these things about each other will help set you up for success.
Ms Janssens also recommends setting "rules" for the account, as well as planning for how conflict will be resolved.
Some examples of discussion starters she mentions include: 'What exactly qualifies as a shared cost? How will responsibilities be divided? And should we have specific check-ins?'
Partners ought to get ready for discussions about equity versus equality to arise when talking about what each individual should add to the account.
As Ms Janssen suggests, reflect within yourself and determine what fairness means to you. Become intrigued by exploring this question.
Mr Khouri emphasizes that it's crucial to establish a budget jointly prior to setting up a shared bank account.
You can use savings calculators and budget planners to assist.
Start small
Once they're ready to open an account, Mr Khouri suggests that couples begin with something modest.
Proceed gradually. Begin with a joint account for handling expenses.
It's quite simple, and you won’t be able to mess it up.
Mr Khouri advises people to talk through alternatives with their financial institution and be wary of pitfalls such as accounts that do not permit automatic payments, or those that charge fees when a specific monthly deposit is not met.
If your initial shared account experience proves successful, he suggests considering the establishment of a joint savings account.
"Should you wish to introduce an additional layer of control, you could set it up such that both sides must sign off to obtain the funds," explains Mr Khouri.
Finally, you might think about setting up a shared account for daily expenses, which includes both of your earnings; however, this option isn’t always ideal for everybody, as some people prefer keeping their financial independence, he notes.
"Every couple is different.
If someone in a partnership feels they might be put at risk due to a financially precarious position, it’s crucial for them to keep some degree of economic self-sufficiency.
"Follow your gut instinct."
