These days, couples are increasingly opting to maintain separate banking accounts. In fact, a significant portion of couples, around 57%, choose to keep at least some of their finances apart.
Maintaining separate accounts can prove to be a wise decision for married couples. While legally, it may not make a significant difference since all funds are generally considered marital assets, having individual checking accounts can alleviate some financial stress. It allows each party to have their own personal financial space and independence.
Here are 5 reasons married couples should keep their bank accounts separate.
1. Not picking on each other’s purchases
We’ve all been there—those late-night impulse purchases that we later regret.
Having separate bank accounts can be the solution to preventing frustrations between partners when it comes to managing money. Maintaining separate accounts allows each individual to retain control and autonomy over their financial decisions.
Of course, it’s important to have open and honest communication about significant expenses, such as remodeling the master bathroom or purchasing a whirlpool. These decisions should be discussed and agreed upon as a team. However, in a healthy relationship, couples often don’t need to scrutinize or disclose every minor purchase made by their partner on a daily basis.
2. No secret spending
According to a recent financial survey, a significant 62% of married couples admitted to engaging in secret spending, hiding their purchases from their partners. However, it may seem counterintuitive, maintaining separate bank accounts can actually help address this issue by promoting transparency. When there is nothing to hide, there is no need to seek approval or justify purchases.
By having separate accounts, each individual has the freedom to make their own financial decisions without feeling the need to seek validation from their partner. This sense of financial autonomy can help reduce resentment or the temptation to engage in secretive spending habits. It fosters an environment where open communication and trust can thrive, as each person can freely manage their own finances.
3. Save for individual goals
Having separate bank accounts can greatly facilitate saving for individual goals within a marriage. While major financial decisions such as mortgage payments, retirement planning, and family vacations are typically made together, it is not uncommon for spouses to have specific goals or interests that the other may not share.
For instance, one partner might have a deep desire to attend Comic-Con with VIP tickets, while the other may dream of a spa retreat or investing in the restoration of a classic car. These individualistic bucket-list items often come with significant price tags that can easily be dismissed or discouraged by others.
However, by maintaining separate bank accounts, individuals have the freedom and autonomy to save up their own money specifically for these personal aspirations. This financial independence allows each spouse to allocate funds towards their individual goals without relying on joint finances or seeking approval from their partner.
4. Building individual credit history
Maintaining separate bank accounts provides each spouse with the opportunity to establish and cultivate their individual credit history, which holds significant importance for various reasons.
Firstly, in unfortunate circumstances such as the passing of a spouse or a separation, having an independent credit history becomes crucial. Relying solely on one spouse’s credit history may result in the other spouse being left with little to no substantial credit background. This can create challenges when it comes to future financial endeavors, such as securing loans or applying for credit cards.
By maintaining separate accounts and actively building their own credit, both spouses can work towards improving their individual credit scores over time. This approach not only enhances financial independence but also increases the overall borrowing potential for both individuals, regardless of whether they remain together or go their separate ways in the future.
5. Maintaining their own identity
In the journey of marriage, it’s not uncommon for individuals to gradually lose a sense of their own identity as their lives become intertwined with their spouse’s. This blending of identities can be observed in various aspects of daily life.
For instance, practical considerations like allergies or dietary restrictions may lead one spouse to compromise on their personal preferences. They might forego buying scented laundry detergent or abstain from adding mushrooms to their pizza to ensure their partner’s well-being and comfort.
Similarly, social choices may be influenced by a desire to maintain a good relationship. Couples may gravitate towards friends who are agreeable to both parties, and they may even adjust their entertainment preferences by watching different TV shows to accommodate their partner’s preferences.
Amidst these compromises and adjustments, maintaining a separate bank account can play a significant role in preserving an individual’s sense of identity and personal agency. With a separate account, each transaction becomes a conscious decision made for personal fulfillment. It allows individuals to assert their independence and make choices that align with their own desires and aspirations.
