Joint account for couples …are two really one?

Marriage is also an event that often triggers us to re-evaluate our finances, with a view to ensuring that we are working towards a successful financial future. One of the fairly immediate decisions that has to be considered is whether to move to a joint checking/current account or to remain with separate accounts?

Managing a family is different from managing a business. Various strategies for various people, but what matters is which one works for you.

Because income is a relevant factor to consider in family financial management, the strategy that works for Mr A might not work for Mr B. As far as every family is concerned, their approaches in managing finances differ.

Opening a joint account with your partner is a huge commitment and one of the biggest decisions you will make in your relationship. Only do it if you completely trust each other, to enable easy assessment of the money in good and in bad times.

The simply law of equilibrium does not function in family income because it is always difficult to get two couples earning the same amount as income –there must be someone making it big. It could be from the man or the woman.

Though, many religious counselors believe that in every family, joint account is ideal, but many couples can testify which one that works for them, considering their personal lifestyle and social demands.

What does Obi Nwankwo, a man who is 10 years in marriage have to say about this, “When I got married to my wife, we followed what the priest counseled us before our wedding? We decided to keep joint account. It is good but I leant a lot from it. My wife spends a lot for wear because she likes looking good.”

“She has more people demanding money from her family. I have less people demanding money from me from my family. I like hanging out with my friend weekend. With this varied lifestyles, having a joint account became difficult to manage. I opted out and asked her (my wife) to manage her income but bearing in mind the need to save for capital projects and children’s education,” Nwankwo.

Simon Wright said: “Deciding whether to opt for a joint account isn’t always an easy decision. The chances are that you have been used to having your own account for many years, so the thought of sharing an account may be quite daunting. There are certainly both pros and cons to this approach and many couples these days are choosing to retain their separate accounts rather than going down the more traditional route of having a joint account.”

Wale Adedeji said: “Though, I earn less than my wife but it is not easy to have joint account with her. It is respectful for me to have my own money and spend it wisely. Because women a heavy spenders, I normally borrow my wife money even from my meager earnings. Imagine what could have been the case when we have joint account. I think it a function of financial discipline. Whether joint or no joint account, if any couple doesn’t have financial discipline, the other person will always not happy, thereby making joint account irrelevant.”  

It is not a good idea to open a joint account with someone you have just met as you are giving them access to your money. Joint accounts are only suitable for people who trust each other deeply, like a family member or your long-term partner.

Meanwhile, there are benefits of joint accounts. People often open a joint account because they pay fewer fees with one account than two. It can also make joint payments like mortgage, rent and other bills easier to manage.  Joint accounts work well for people who spend money in a similar way. Both people should agree how and when they will deposit and withdraw money, to meet the same goals.

If you are thinking about opening a joint account, ask yourself these questions: Do I trust the other person completely even if times get tough? Do we communicate well about money matters? Do we have similar goals for our money and similar spending habits? What is our objective in opening a joint account?

Iheanyi Nwachukwu