It’s not a conversation that usually comes up on a first date (could there be anything more anticlimactic?) and is often avoided during the early stages of relationships, even the most serious and promising ones. In fact, according to a study by the financial platform Finect, the
58% of couples they don’t talk about money before their first anniversary. And almost 7% have never done so. However, sooner or later (and generally coinciding with the decision to live together) the time comes to ask the eternal question:
joint or separate accounts? But if it is eternal it is for a reason. There is no standard answer that works for everyone.
Before getting down to business, let’s start at the beginning: what is and what does a
joint bank account? In a shared bank account, co-ownership is indistinct or joint and several. This means that both holders have access and decision-making capacity over money and freedom of movement in operations without the need for the express permission of the other. In the same way, they are co-responsible if, for example, a
debt with the bank.
Generally, the two holders have credit cards associated with the same account, and can make transfers and direct debits of receipts, facilitating the management of shared expenses such as the mortgage, car credit, children’s school, weekly purchases or vacation. For the
financial coach Patricia Caro One of its main advantages is that it allows you to set common financial goals. For example, buying a house. Or save with an eye toward retirement. “I believe that common accounts contribute to communication and joint growth in a couple,” explains the expert. It is not just an impression.
Common Account Advantages and Disadvantages
According to a joint study carried out by researchers from the universities of
Our Lady,
UCLA y
University College of London couples who share a bank account are happier in their relationship and are less likely to break up. “It’s not that financial autonomy (or keeping separate accounts) is in itself a disadvantage, but it’s important that couples perceive their financial possessions and goals as shared. And our research identifies a practical way to facilitate it: merge bank accounts, “explain those responsible for the study. With an important nuance: there is no need to rush, his conclusions only apply to long-lasting relationships. This is the case of Olga, who has been with her partner for more than 15 years and shares a single account with him. “It’s a matter of comfort. All in one and no other. We don’t care what we spend on our things. We never explain ourselves.”
And yet, it is an option in decline, especially among the youngest. According to a
Bank of America study, 28% of millennial couples bet on having their money completely separated. «It is true that you lose some personal financial independence, but individual management can harm the unity of the couple. That being said, the appropriate formula is the one that both people agree on. That is why it is so important to talk about money with your partner”, argues Patricia Caro.
Choosing one option or another depends on many variables. There is, on the one hand, the
generational factor. «Until the year 75 women could not have a checking account in their name in Spain. We are talking about only 50 years ago, “explains the expert. But, usually, what weighs the most are personal circumstances. «A relationship that began at 20 years old and has been building a common economy is not the same as meeting someone at 40. If, for example,
you are coming out of a divorce, having a common account again can be understood as a loss of the economic independence achieved. Perhaps after a separation, you decide that you want to do it differently. It depends on each situation and each vital moment”, explains Patricia Caro.
Do I have to contribute the same in a common account?
Who opts for having separate accounts, has a
powerful argument in your favor: in case of separation, complications are minimized. “Sometimes they have not contributed in the same way, the income is different and perhaps a member of the couple has stopped working because she has been left to care for the children. Obviously, if the relationship breaks down, joint accounts are much more difficult to manage,” explains Caro. This is the case of Ana, 42 years old and separated for three years. «I always kept a personal account and a common one for expenses. And luckily, because
when you separate everything is problems».
Perhaps for this reason, a popular option that up to 44.5% of couples opt for, according to data from Finect, is to opt for the middle path:
joint account to meet common obligations (purchase, house, insurance, vacations…) and separated for own and personal expenses, and to preserve a greater degree of independence. «Maintaining my own account in addition to the common one gives me the freedom to do what I want with my money. If I go to dinner with my friends and I spend 100 euros in one night, I don’t want to
have to explain nobody”, explains Maite, who works in a design store and often sees examples of the opposite. “Many clients buy something with the common card and say: ‘She will find out how much I have spent on her gift.’
But the middle option also raises some questions. For example:
both people must contribute the same to the pool account or does your contribution depend on your income? «If a couple has separate accounts and then they have a joint account, the ideal thing to avoid problems is that they contribute the same and then each one manages their personal account as they want. Usually, if that option is chosen, it is because the economic situation is usually balanced between them”, explains Patricia Caro. And if it’s not that way? “If one of the two has a much higher income than the other, I think that the most appropriate option is a single account.”