Pros And Cons Of Having A Joint Bank Account

It is often assumed that a married couple will have a joint bank account. After all, the money belongs to both spouses equally, regardless of who earns it. A joint account enables both parties to see what’s going on in the account and manage their money together. However, there are times when it’s better not to have joint accounts, but it does depend on many factors. There is no one right way.

The pros of having a joint bank account:

• Only One Fee – Most bank accounts come with fees these days. Cutting down on fees is a good thing to do financially. If you have enough money to keep more than one account, it might make sense to have separate accounts so that each person is responsible and accountable for their own actions and choices.
• Makes Accounting Easier – If it’s all in one place, it’s a lot easier to keep track of since either of you can access the accounts. You’ll know at a glance what savings you have, investments, and the balance in your checking account.
• Everything in One Place – If all your money is in one place, it’s harder to hide problems. If one spouse is prone to doing that, having a joint account that both can see alerts to and balances in can help.
• Promotes Trust – There is no hiding anything if you have a joint account. This means that it can promote trust since there are no private expenditures when you have only joint accounts.

The cons of having a joint bank account:

• One Party Has Issues – If one party has serious issues with keeping track of a bank account, having a joint account can lead to added stress. It might be simpler to let the partner who is not good at keeping track to keep a separate account to avoid issues paying bills and keeping track.
• Not Creating a Credit Path for Both Spouses – In some cases especially if you have a nonworking spouse, it can make it hard for that spouse to build their credit record. Having a credit record may come in handy should something happen to the main working spouse.
• More Ammunition for Fighting – Having joint accounts when parties aren’t on the same page can create fodder for fighting with each other about the spending happening. For this reason, sometimes having separate accounts can help.
• Reduces Autonomy – Having only joint accounts can make it hard for the spouses to buy gifts, plan surprises, or do things that they want to do without judgment from the other spouse. That’s why there should always be some fun money for each spouse to spend on whatever they want.

Whether you choose to have separate accounts or joint accounts, you can still accomplish your financial goals. There is no one right way to achieve your goals. Each couple must figure out for themselves what works best for them. Most of the time a compromise and division of responsibilities is the answer. A joint account for joint bills, separate accounts for personal spending money that you’ve agreed upon.