Dos and Don’ts of a joint account

The option to get a joint bank account is common among individuals in a relationship. Typically, this choice is made once they have arrived at a decision of moving in together, so expenditures like rent, monthly bills, as well as gas for transportation can be split and shared. Others, on the other hand, wait for their knot to be tied before having one. A joint bank account may seem romantic on the surface. However, this endeavor both has its pros and cons and if you are considering having one, learning its dos and don’ts will serve you benefits.

Dos of a joint account

·       Welcome and encourage transparency between the partners. Information about the money – where the fund goes and how much is spent – will help you develop a strategy that gears towards financial freedom and stability.

·       A joint bank account provides a simple, clear-cut, and convenient way of handling your finances and expenditures such as mortgage, monthly rent as well as bills. Consequently, a joint bank account provides a venue where your savings can dramatically increase. Maximize it with these two aims in mind.

·       A joint bank account serves as a financial guideline that helps couples in managing their funds effectively. In effect, this helps them avoid unnecessary confrontation and arguments. Use this to boost not only the amount you have in your bank but also the health of your personal relationship. Remember that this, too, is an advantage.

 

Don’ts of a joint account

·       Obsessive stalking about your financial flow is a big no-no. Information about the whereabouts of your finances could lead to unnecessary friction and resentment directed at each other. Trust your partner.

·        Don’t invade your partner’s privacy. A joint bank account provides transparency, yes, but if this transparency is used to calculate your earnings vis-à-vis your partner’s earnings, as well as watch over each others’ expenses, then I’m afraid that this perfectly defeats the benefits.

·       Don’t set up a joint bank account if one of you has a poor money management skills.

·       Lie or take money from the account without talking about it with your partner.

Getting a joint account is a decision that should be based on a sound and valid reason. Knowledge about its pros and cons, as well as dos and don’ts, can prove itself beneficial. If you and your partner