Financial wellness is an important part of one’s overall well-being. Having a sound money management plan can be the light at the end of the tunnel for people trying to get their financial life in order. Saving money can help you become financially secure and provide a safety net in case of an emergency. Whether you’re a single or married, deciding how to manage your bank accounts is a top priority.
One can open a regular savings bank account or a joint account with a bank. Joint accounts are basically regular bank accounts that are opened so that all the individuals who hold the account can enjoy equal benefits when it comes to deposits and withdrawals.
Benefits of having a joint account
- It is convenient to manage as everything is in one place.
- It provides a sense of equality to couples who don’t contribute equally to the household finances. It is a fair way of sharing funds, even if income is unequal.
- It is a good way to combine and grow your money to work toward your common goals.
- If one of the account holders passes away, the survivor shall automatically gain full control of the account without the requirement of a legal document such as a will.
Benefits of having a single account
- Creates more harmony in your relationship by avoiding financial conflicts.
- Protecting individual assets.
An individual who is single can open a regular savings account or open a joint account with their parents or siblings.
Married couples can choose to maintain separate accounts and also open a joint account in which they deposit a portion of their income for common goals like vacations, down payment for loans, kids’ education, or retirement. This way, both parents enjoy the benefits of a joint account while still maintaining the independence of divided finances. Joint accounts come with joint responsibility. Living your life with another person involves a lot of negotiating and works only when the account holders share utmost trust with each other. Traditionally, right after marriage, couples integrate into each other’s lives. Combining paychecks or other recurring income into a single bank account is part of the integration. Having one bank account offers several benefits as mentioned above.
Likewise, maintaining separate bank accounts doesn’t take away responsibility from either spouse. You still need to work together to manage your finances. Since people are completely different when it comes to saving and spending, maintaining and contributing to our own accounts allows us to retain some financial independence and autonomy while still making the big decisions together.
There’s no ‘one size fits all’ approach. How you manage your finances will depend on your attitudes to money. You might find some areas where you’re happy to share the responsibility, but others where you need to reach a compromise. Before you get started, try to understand each other’s approach and attitude to money which will help you find areas where you agree – and disagree – so you can spot potential problems before they happen.