Money and relationships are two things to cherish… but what happens when they mix?
Should you have separate accounts, and transfer funds into a joint one? Or do you keep one account and share everything?
The best answer for something as personal as love and money is your very own. Sit down with your partner and ask, “What would be our ideal bank account scenario?” “What would benefit both of our needs and money values?”
If you both have strong senses of security, you might want to keep separate accounts. Then you can transfer money for joint expenses into one account, and keep your personal savings money for yourself. Or, perhaps one shared account is something you can agree on.
Here comes the hard part: What if you break up? Discuss this beforehand, and write down how you would split the funds (then put the paper away). Of course, we never expect or want this to happen, but having it on paper will nip any money fights in the bud in a worst-case scenario.
With that peace of mind, sit down with your special someone and write down your ideal situations, and what you want to achieve with this joint account. Better yet, follow these steps:
1. Keep a minimum balance to wave the monthly fee. If you keep $1,500 to save $8.95 a month, that is $107.40 a year.
2. Walk the extra block to the bank together to save ATM fees. Save one extra $1.5 ATM fee per week, and you’ll save $78 a year!
3. Take out cash Sunday night for the entire week. It’ll save you fees, plus the time and frustration when a debit machine is down. People generally spend less when they use cash, too.
4. Get a high-interest savings account, and link it to your couple account. Keep any idle money here to earn extra interest. Even $2,500 kept to pay your property taxes at the end of the year will generate $25 in interest in a 1% savings account.
If you add up all of these super simple savings, they equal $210.40! Talk to you partner about how to celebrate your fiscal prudence. Save half and then go out for a nice dinner and a movie. You’re developing some amazing money skills – and rewarding yourself will push you to be even better.
It makes SweetCents for a sweet couple.
Dave
David C. Lester is a Professional Financial and Life Coach and author of the popular Canadian personal finance lifestyle blog, iheartmoney.ca. Throughout his career he’s gained his personal finance expertise from holding advisory positions within various financial institutions. David currently resides in Toronto, ON with his family dearest friends never far away. In his spare time Lester is an active equestrian and is passionate about art.