Joint Account Banking
Should We Open a Joint Banking Account?
All couples entering into a marriage stumble across the decision of opening a joint banking account together. There are two key elements that should be used when making this decision; patience and open communication.
All couples should have the freedom and courage to feel as if they can be completely honest with one another regarding their financial goals if they are considering opening a joint banking account.
When deciding whether to open a joint banking account there are several factors that should be considered; the income of each person, monthly bill expenses for each person, and determining if each person in the relationship is a saver of money or a spender of money.
There are several advantages and disadvantages of having a joint banking account, and all should be contemplated before choosing to have one or choosing not to have one.
Which Type of Couple Should Opt With a Joint Banking Account?
Only couples who completely trust each other should open a joint banking account. These couples should also conclude they have similar spending and saving habits, as well as a preference for wanting to easily deposit, pay bills, and withdraw money from a banking account; as joint banking accounts allow for easy access to the money in the account.
Advantages of Joint Banking Accounts
When a couple decides to open a joint banking account, both of their names will appear on the account. The money between the two people is completely merged. The money in the account can be spent in any way that the couple chooses, and also any way that any one individual on the account chooses.
Most times when a couple opens this type of account they will deposit any type of income they have into this one account. Bills can be electronically paid from the account, which makes paying bills on time a hassle-free task, as long as there is money in the account to cover the bills.
Most couples love using joint banking accounts because they are very convenient and lessen the amount of stress involved when trying to manage two banking accounts. In the event of a spousal death, the other spouse automatically has access to the account, so there is never a need to wait during a probation period for the money to become accessible.
Disadvantages of Having a Joint Banking Account
It is very important that couples realize the disadvantages that come along with having a joint banking account. One of the most pertinent disadvantages is each individual within the couple has full access to deposit and withdraw money from the account without having to inform the other. Many times couples will begin arguing because they believe their spouse should have informed them before making any type of purchase through the account.
Having full access to a joint banking account also often leads to bounced checks. This is mainly because one spouse is under the impression there is a certain amount of money in the account so they make a purchase or pay a bill, while in reality the other spouse had already spent some of the money in the account, causing in the end the check to bounce.
Joint banking accounts also cause huge problems when divorce situations arise between couples. Both persons in the marriage have full access to withdraw all money in the account at anytime. When a divorce occurs, many times one person will withdraw all the money even if they were not the one who deposited it.
Many couples do not enjoy having to check in with the other when it comes to conversations relating to how the money is being spent. It is always important to determine from the beginning how the money in a joint banking account should be spent, and it is wise to follow any rules that have been set into place.
Communication
Joint banking accounts perfectly satisfy some couples, and these couples always conclude it is through communication that they have made having a joint banking account work. A budget should always be drawn up before even considering having a joint bank account, as this budget majorly determines how the money in the account will be spent.