Joint accounts make money management easier as a couple, but it is important to discuss this step well before you take it.
While deciding to share your money in an everyday bank account could seem like a logical and convenient move to make, there are some risks and factors that could complicate things now or in the future.
Clear communication from the start, however, can make a big difference, and here we take a look at five of the things you should sit down to talk about before comparing accounts and moving forward.
It may not seem important straight away, but how much money you both put into a joint account could become a sore point later on.
While it may seem easier to both put all your earnings into this account directly, you may want to discuss and set an equal deposit amount so that you are contributing equally.
Shared And Personal Expenses
Are you only pulling out your joint account debit card for groceries and fuel? Or are you also using it for night’s out and luxury shopping?
Regardless of how you plan to use your shared funds, it is important to make sure both of you are on the same page from the start, so that it is easier to track where your money goes.
Looking over your own debit card statement can be tedious enough without worrying about other people’s spending habits, but a joint account could mean you have to deal with both.
It is, however, important to decide on a time and way to manage the account. Not only will it help you keep your shared finances in order, but it will also help prevent fraud if you know who made what transactions.
Setting up a direct debit for things like rent, bills or other subscriptions is incredibly easy, but could get confusing with a joint account.
If only one of you is aware of the direct debit date, for example, the other person could leave funds too low and run the risk of overdrawing on the account.
So when direct debits are a factor, make sure both of you know when they will come into play and how much money needs to be in the account at all times.
While the wide range of ways you can use debit cards is a huge advantage, it is still good to make sure both of you are aware of the costs and risks associated with different types of transactions.
Joint accounts can be a great way to take commitment to the next level, but planning is an important part of the process.
By looking at all of the factors above as a couple, you should be able to manage your joint account fairly and responsibly for years to come.