As the old saying goes, first comes love then comes marriage. When two people decide to unite their lives, they also unite their money. Talking about money with a significant other can be awkward. However, these talks need to be a priority because money matters cause problems for many couples. Be honest about financial matters and you will both be grateful in the long run. If you and your significant other are considering marriage, there are three main ways you can deal with your money as a couple. Each option has its own pros and cons that Raccoon Valley Bank will look at.
1. Each person manages their own account.
When you and your spouse manage separate accounts, you don’t need to worry about having compatible spending habits and can continue handling your finances independently. On the other hand, paying bills for things like rent, utilities and groceries can be more complicated. Honest communication is necessary to make this method work.
2. The couple merges their money halfway.
Merging half of your money allows couples to pay some expenses from a joint account while depositing individual paychecks into a separate account. This works well to ease from financial independence to a joint system. However, dividing up an equal percentage of the money and managing three accounts can be confusing and time-consuming.
3. Put all your money together.
Some couples choose to merge all of their money together when they get married. In this situation, all future paychecks are deposited and expenses are paid from the same account. This method makes budgeting easier and gives couples a sense of togetherness. But, in some cases, partners feel like they are being watched and judged for spending.
If you are married, how did you decide to organize your finances? If you are considering marriage, it is important to agree upon financial matters now to avoid future conflict. To find a savings plan that works for you and your significant other, contact Raccoon Valley Bank.