What you need to know about joint bank accounts.

Many couples face the dilemma of whether to open a joint bank account or keep their finances separate. Some see a joint account as a symbol of trust and commitment while others value their financial independence and privacy.

There is no right answer, as different approaches may suit different situations. I want to help you explore how you can find the right arrangement for you and your partner.

Impact of joint bank accounts

A team of university researchers explored the financial dynamics of newlyweds and engaged couples over a span of two years and observed those who merged their finances and those who kept them separate. The results, quite bluntly, indicate that shared bank accounts led to so-called happier marriages among UK participants – but there were exceptions.

Saving in a joint bank account can help you share a vision, align your goals and hold each other accountable. By pooling your money, you work as a team to tackle challenges and celebrate achievements alike. It can strengthen your relationship by fostering trust and communication – for example, you can have honest and open discussions about your income, spending habits and debts.

It’s also just easier for things you split with your partner. You can both contribute to the account and use it to pay for rent, bills and groceries.

Financial autonomy

The problem is that relationships are as unique as snowflakes – you shouldn’t rely on sample research. Many modern couples, like Sarah, a vibrant woman happily married for six years, have chosen to maintain separate bank accounts with their partner and transfer money as and when needed. She cherishes her financial independence and respects her partner’s spending habits.

Sarah’s perspective echoes the sentiments of many Brit couples. Financial autonomy is a hard-fought right that women and men alike have worked tirelessly to secure. The decision to keep entirely separate accounts isn’t due to a lack of trust at all, on the contrary; it’s about maintaining full autonomy while still fulfilling shared responsibilities.

Sarah isn’t alone in her approach to finances. F&C Investment Trust found that 33% of couples who cohabit in the UK opt to keep their finances separate. Many couples prefer full control over their own money, to not have to compromise or consult their partner about big or personal purchases, even with shared expenses that would be easier to manage in one joint account.

Strike a balance

Financial harmony in relationships is a personal journey, shaped by individual values, experiences and trust. The key lies somewhere in between where you can experience the benefits of both sides.

Couples could set up joint accounts for shared expenses while allowing each partner to keep a separate account for income and personal spending, alternatively, with the rise of personal finance apps, like Emma, with social features such as joint spaces and virtual accounts you can handle just about any couple/flat-mate related arrangement. 70% of couples now use mobile apps to manage shared money.

So, how can you find your right balance? Here are some general tips that you can expand on yourself based on your situation:

• Talk to your partner about your financial goals, values and expectations and be honest about your income, spending habits, debts and savings. Try to understand each other’s perspectives and find common ground.
• Decide how much money you want to share and how much you want to keep separate. It’s best to ease in with this approach. If you agree to share some amount go to the next step.
• Use a money management app like Emma to help you track and manage your shared expenses. Emma allows you to create and control Groups or Spaces with your partner and link your personal accounts for easy bill splitting and setting budgets. Try this before committing to a joint bank account.
• Or set up a joint account for shared expenses and goals and keep separate accounts for personal spending. Agree on how much each of you will contribute to the joint account each month based on your income or proportionally.
• Review your financial situation regularly and make adjustments as needed

Evolving perspectives

Our perspectives on money and independence have progressed a lot since the times of those we tend to seek relationship advice from. Similarly, couples with different ethnic or religious values may have different norms about how money should be allocated. Sarah’s story reminds us that financial harmony is not solely determined by a joint bank account but rather by the support, trust and communication shared between you and your partner.

Couples should be flexible to their changing circumstances and communicate regularly about their financial goals and challenges because financial arrangements become increasingly important as you journey through life stages together, such as having children or retiring.