Are you wondering what are the benefits of a joint bank account? We will help you with that. When you own any kind of bank account, it is wise to know how to protect your bank account from scams.
Both joint bank accounts and separate bank accounts have their pros and cons. You just have to figure out which kind better suits you.
The Common Mistakes
There are some things you should take into consideration before you merge your account with your spouse. If you rush into it too soon, you could make a big mistake.
Most couples who want joint accounts usually combine everything they earn. But, there are those who combine only shared expenses. In that case, you have to determine the scope of contribution for each person.
If you combine everything, you have to set the ground rules for expenses to make sure you are both on the same page. You should establish the spending goals or limits and saving goals before you get a joint account.
You should also talk about your spending habits and about giving money to charity and helping others. Sometimes we think we know everything about our spouse, but in some cases we are wrong.
The Main Benefits of Having a Joint Bank Account
A joint bank account is not that much different from a standard bank account. The only difference is that it is not owned by one, but two persons. So, both of you can do everything an owner does. That means to pay bills and other expenses, withdraw money from the account, write checks, etc.
Some people prefer to keep their individual, separate accounts, but every couple is different. So, before you decide to merge accounts, make sure to check out what are the main benefits of having a joint bank account.
1. Joint account is very convenient
All the money is in one place and both of you can not only make payments but also monitor the actions of your spouse. It is easier to, for example, pay the mortgage payment and pay the bills. At any given time, each spouse can check out what is arriving and what is going out of the account.
2. Teamwork and equality
Each couple should be a team and what better way to practice that than through money handling. Money can cause a lot of problems in a relationship. And if you can handle the money together, as a team, you can surely overcome other obstacles, as well.
On the other hand, you can’t predict some unpleasant things like one spouse losing a job. In that case, a spouse who doesn’t work still get to share your funds without feeling unequal. However, this rule also applies when it comes to some positive things happening in your lives, for example, having a baby. The spouse that stays at home can spend the money in the same manner.
3. Keeping track of payments and bills
Let’s face it, an average couple today has tons of bills to pay. They usually have mortgages, other loans, utilities, student debts, etc. If you have a joint bank account it is easier to keep track of all of these. That way, you will reduce the chances of leaving something unpaid by accident. If you forget to pay something, your spouse can remind you.
4. Saving on fees
If you write down and calculate the bank fees of owning and maintaining a bank account, you would probably realize that it is not that cheap. All these small or large fees add up. So, why double the fees when there is no need for that? When two persons have one account you will save a nice amount of money on different fees.
The Disadvantages of Joint Bank Account
1. Money quarrel
When one spouse has insight into another spouse spending, that could lead to some money spats. It means that every dollar you spend can be a subject of your spouse’s control. You probably can’t relax and do some guilt-free reckless spending. But, if you are a shopaholic, this could be a very good thing for you, to keep your spending under control. However, it is always the best thing to discuss your spending habits with your spouse.
2. No secret gifts
If the money you earn goes straight to the joint bank account, you can no longer buy a secret gift for your spouse using the account. It could kill spontaneous little surprises for your spouse. But don’t worry, you can always withdraw cash and buy the gift with cash.