Should Couples Have A Joint Bank Account?

Joint bank accounts allow couples to manage budgets together, monitor spending and save for shared goals. But they aren’t right for every couple. And you don’t have to go with an all-or-nothing approach, either. You can have a joint account without merging all your finances. 

Here’s what you should consider before deciding whether a joint account, separate account, or a blend of both, is right for your relationship.

Banking statistics for couples

Why have a joint bank account?

Some couples maintain a joint bank account because it may make it easier to track spending and save for shared goals. But don’t set up a joint account simply because it seems like “the thing to do.” This decision should only be made with open communication and a lot of self-reflection.

Here are a few main reasons to open a joint account with your significant other:

1. Saving for joint goals: You don’t have to go all-in on joint accounts to have a joint account. If you’re saving for a joint goal, such as a house or a wedding, consider opening a savings account so you can both contribute to a shared goal.
2. Paying down shared debt: Similarly, you may want to contribute to a shared account if the money leaving it is going to paying a shared debt, such as a mortgage.
3. Transparency in household spending and easier budgeting: With a joint bank account, you and your partner will be able to have a good running tally of fixed expenses, but you’ll also be able to keep track of variable costs.
4. Increased communication about finances: Having a joint account is very likely to lead to you talking more about your finances and plans. A 2024 study by Fidelity found that those who say they communicate well are less likely to report money as their greatest relationship challenge, and they’re more likely to rate their household’s financial health as excellent or very good.
5. Easier access to the other’s money in case of an emergency: By having each of you listed as an authorized account holder, you won’t need to jump through any hoops to access your money if the other is unavailable. For example, if one of you is in a terrible accident, the other will be able to access the funds without worrying about any red tape. 

Why keep separate bank accounts instead of joint accounts?

1. More control over your money: When you open a joint account, both owners have full control of the money. That means your partner can drain the account without asking, and you’d have no recourse to get it back.
2. Avoid big conflicts: There’s a good chance that you have a different definition of financial responsibility than your partner does. If each of you is working to make money, it can be up to you how you choose to spend it without worrying about your partner questioning your decision.
3. Avoid being accountable for your partner’s debts: If you wind up merging all your finances — credit cards, too — you could be on the hook for your partner’s spending habits. For example, your partner may overspend and incur overdraft fees on a joint checking account, which may strain your relationship along with your finances.
4. A semblance of financial privacy: You don’t have to share everything with your partner or agree (or even discuss) every single spending decision. You can keep a separate checking account for yourself, even if you have a joint checking account with your partner, to spend on your own hobbies or gifts for friends you may not share. 

Summary of pros and cons of joint accounts

Pros

• You can work together to save for bigger life goals.
• You may be able to create a plan to pay off debt.
• You’ll create an easy path to budgeting together for the long term.
• You will be able to set up regular discussions about money by looking at the account history.
• You can both access the money in a worst-case scenario, particularly if one of you is incapacitated.

Cons

• You’ll no longer have full control over your money.
• You’ll have a messy road ahead if you break up.
• You can wind up arguing more about overspending.
• You’re getting on the pathway to sharing all of your finances, including debts, which requires careful consideration.

Try a combination of joint accounts and separate accounts

Fortunately, couples aren’t forced into an either-or solution here. You can easily use a separate account for your personal spending and a joint account for joint payments, such as rent or a mortgage, childcare, utilities and the like. Similarly, you can set up a shared savings account for joint savings goals, and separate savings for yourself. You and your significant other can enjoy the benefits of both accounts, such as joint bill paying, without so much of the concern about differences in spending habits.

With more bank accounts to manage, more coordination will be required to ensure that money is moved into a joint account for paying bills and other shared expenses each month. But that may also give room for both partners to be more communicative about their finances and work together to achieve that coordination.

Bottom line

Navigating personal finances as a couple requires trust and communication in any situation. Whether you’re creating a new account for the both of you or keeping your accounts separate, it’s important to make sure both partners are on the same page when it comes to where your money goes. You don’t have to combine all your money, but you should both have a clear understanding of how your money comes in and goes out.