When you share your life with someone, you share a lot of responsibility – particularly when it comes to finances. Sharing your money with someone also takes a certain amount of trust. But whether you choose to collectively pool your money together or keep it separate, the choice is ultimately a personal decision that should be made after carefully considering the pros and cons of each option.
The Benefits of Joint Accounts
One of the biggest benefits of sharing a joint account with your significant other, is the ability to compile your money together and (ideally) acquire a larger balance. Two incomes are better than one, after all. So if either of you needs to pay bills, go shopping for groceries or take care of unexpected car repairs, you’ll most likely have a broader base to withdraw from.
The other benefit involves interest. This applies mostly to savings accounts. With two people contributing instead of one, you are more likely to build a higher balance, which will accrue more interest. If you share an interest-bearing account with your significant other, and you’re both responsible about making regular contributions, you could likely double your savings in a shorter amount of time than if you were contributing to it alone.
Lastly, sharing a joint account with your special someone can be a great exercise in sharing your assets equally, which is something every couple has to practice in one way or another. By sharing your money, you’re ultimately saying that there is no “my money” or “your money.” The funds that are acquired are to be used equally. However, this is often one of the hardest aspects of joint accounts. Many couples have a hard time letting go of the idea that their money is “theirs.” This is especially true of couples in which one partner makes more than the other, which brings us to the biggest drawback of joint accounts – the temptation to control the funds.