Articles From Experts
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Express Newsline Articles From Experts |
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For a newly married couple, these days it’s not unavoidable to merge their accounts into one. Already the financial condition is complicated from previous commitments, which may range from student loans to previous marriages, further including issues such as sense of financial independence. It’s easy for the couple to carry on after the knot has been tied, when the financial situation has been discussed before the marriage. The options you have are: as some may expect one joint account and the other is "one joint account plus two separate accounts". The first option is known to be the cause of complications in many cases as one, may be bad in keeping track of checks etc., which may lead to resentment and power struggle later on. But then there are many who find this a better option. The other more viable option, which couples can follow, is: One Joint Account, Plus Two Separate Accounts Many couples today set up a joint checking account while retaining their separate checking accounts. They each pay an agreed upon amount, into the joint checking account each month and use this account to pay the household bills. One of the big advantages to this method is that each person retains his or her own autonomy and financial independence, which helps avoid the use of money as power in the relationship. Now if you are going to use this method, both must come up with a method of determining how much each of you will contribute to the joint checking account. To do this: --Set up a budget so you know what your shared monthly expenses are and how much will need to go into the joint checking account. --If you both earn roughly the same amount, it makes sense to each contribute the same dollar amount to the joint account. If one of you earns substantially more than the other, it's more fair to contribute on a percentage basis. --Set up a joint savings account that each of you contributes to for your shared financial goals, such as saving for retirement, investing, buying a new vehicle, taking a vacation, paying for your kids' college educations, etc. --Continue to pay your own pre-existing credit card debt, student loans, and other financial obligations from your personal checking accounts. Whatever one may decide to come up, it will depend on couple, to come up with the working methodology to work for them. With little thought-out process depending upon the situation the couple are in, should result in a viable option, which shall satisfy each partner. In the long run its the carefully thought out plan about money, will be able to save both the partners many topsy-turvy situations.
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