As your wedding day approaches, it’s only logical to start thinking about all the things you have to do to prepare for the day. But it’s a good idea to squeeze in some time to work on the details of your life after the wedding, and organizing your finances with your partner should be on that list. (We know it doesn’t sound fun, but hear us out!) One of the most popular options newlyweds choose is to open a joint bank account together; you’re already sharing everything else, so merging your finances together almost seems like a no-brainer. But is it really the best choice for you and your partner?
Money is a touchy topic for a lot of people, so discussing the nitty-gritty details of your financial status with your soon-to-be spouse might not exactly be painless. That said, despite how difficult it may be, it’s a good idea to make the money talk a priority before the wedding, if you’re considering opening an account together, start by reviewing salaries, bonuses and the like. Then move on to sharing your credit ratings, assets, student loans and other parts of your financial portfolios. If you’ve already done a check of each other’s financial baggage (and you’re both comfortable with what you’ve found), that’s great! But double-check that you haven’t glossed over anything—it can sometimes take multiple conversations for all the little details to be covered.
You already feel like you’re on the same team. But before you open a joint bank account together, make sure you’re both taking a joint approach to your finances as well. It often doesn’t work when newlyweds add money to their personal bank accounts first, then put the remaining cash in the joint account.
Instead, pool all of your and your soon-to-be spouse’s income into the joint account first, and give out an “allowance” from that lump sum to spend each week. That being said, there’s nothing wrong with keeping your own account on the side. But ideally, your joint account should be more of a communal money pot in which you both initially deposit your entire salary—then get to dividing it up for food, phone bills, mortgage payments and savings. “There’s no more ‘your income’ and ‘their income’ once you’re married. It’s ours’
If you and your soon-to-be spouse are working toward post wedding financial goals, like a deposit on a house or retirement, opening an account together might actually help you reach them. For starters, it’s easy to keep track of how much you’re saving when your money is in one account. And because you both have shared participation in the account, you both have equal responsibility for making it successful. Most importantly, though, having a joint account will make it easier for you to talk about money with your partner. When you’re both able to see how much you’re each contributing every week, you’re more likely to talk about your finances in a healthy, constructive way.
