Three Money Management Strategies for Couples

Getting engaged or married is exciting, with couples making many plans about their dreams for their shared future. As soon as the festivities and celebratory champagne are over, there are still many adventures in the honeymoon period, but it also comes with some logistical changes.

Now that you’ve transitioned into marriage, you must decide how to manage money and other assets, not as two single people but as a couple. Regarding money management for couples, there are three options: separate accounts, joint accounts, or a combination of both.

You must know a few things as you discuss this decision with your significant other.

Separate accounts

With separate accounts, each partner bears the burden of their spending habits, including any debts they accumulated before the marriage. If you’re both satisfied with your arrangement for sharing the expenses, this option appears to be the fairest, and you’re not likely to have massive conflicts regarding your spouse's spending habits.

The problem with this strategy is keeping track of what you and your spouse owe each other monthly. Such an arrangement is especially problematic when children come into the picture or if one of you is interested in returning to school or changing careers. Also, retirement savings plans based on your income are not optimal with these separate accounts.

Joint accounts

If simplifying how you manage your money as a couple is a priority, having joint accounts is the most straightforward approach, mainly if you use the best banks in Norman, Oklahoma. You don’t have to factor in relative income payment levels; the family account merely covers family expenses.

Joint accounts are advantageous because they allow for easy budgeting and spending tracking. After all, resources are unified. Furthermore, as a couple, you won’t need to change the way you manage your finances as the family begins to grow. The downside of joint accounts is that resentment can emerge when you judge each other’s spending habits.

Both separate and joint accounts

Using a hybrid system in which you have separate and joint accounts allows you to pay the bills with relative ease while still considering disparities in income. Each partner still has the freedom to spend their money as they deem fit without the need to seek the other’s approval. At the same time, as a couple, you can work together toward a unified goal, such as building a retirement home.

Important to note, though, is that while easy to track, this method requires opening and managing more than one bank account. Additionally, some people may need to take better care of having money put into their account each month, like some allowance.

The bottom line

There’s no universally accepted way of managing finances as a couple. However, with a strong foundation of trust, communication, and planning, you and your spouse can have a marriage free from severe conflicts about money. If coming up with a joint plan that suits both of you poses a challenge, seek professional guidance from a financial advisor.