Combining Finances

Combining Finances

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When it comes to managing your money as a couple, everyone will be unique. We have a few of the strategies you and your significant other can consider.

Combine Completely

Combining your finances completely means that all of your accounts are joint accounts. While this can be an easy way to pay joint expenses, it takes a lot of communication to make sure both partners are on the same page. If you choose this option, consider creating a limit for purchases, say $100, that can be made without speaking with your partner first. This way both parties are involved in larger financial decisions. Also, when budgeting, you may want to allot each partner a weekly or monthly allowance. This money is “fun money” that each partner can spend in the way they choose. This can give flexibility and alleviate some guilt on spending.

To Each Their Own

Finances can also be kept completely separate. With this method, couples keep their separate accounts and split the bills. For example one person may pay the phone bill while the other pays the electricity bill. This method can work well for some couples, but make sure you are revisiting your finances as your life progresses to ensure that the budget seems fair and balanced to both parties.

Hybrid Model

If you want to keep your finances fairly separate but want the ease of paying bills together, this is the method for you. In the hybrid model, each person has their own account as well as a joint account. Couples can either contribute a set amount to the joint account each month or do a percentage of their paycheck. If one partner makes significantly less than the other, try contributing a percentage of your paycheck. For example, each person contributes 80% into the joint account and the other 20% is kept in your individual account. This ensures that each partner is paying an equitable share, instead of a set dollar amount.