Everyone has their mind on love in February. As the old saying goes, first comes love then comes marriage. But when two people unite their lives, they also unite their money. Talks about money with a significant other are not always easy to have. However, these talks need to be a priority as money drives many couples apart. Be honest and transparent about financial matters and you will both be thankful in the long run. If you are thinking about getting married soon, there are three main ways you can deal with your money as a couple. Each option has its own pros and cons that Manufacturer’s Bank and Trust will identify below.
Option 1: Each person manages their own account
If each individual maintains a separate account, they don’t need to worry about having agreeable spending habits and can keep financial independence. However, it also makes bill paying a little tricky. Good communication is necessary to make this work.
Option 2: The couple merges their money halfway
For couples that merge their money halfway, each individual keeps a separate bank account to deposit paychecks but the couple’s expenses are paid from a joint account. In this situation, each person can maintain independence and slowly give it up. It can also be confusing to have three accounts to manage. Couples also need to figure out percentages of paychecks in order to equally contribute to the joint fund.
Option: Put all your money together
A couple may decide to put all their money together in a union like their marriage! All future paychecks are deposited and expenses are paid from this joint account. This gives couples a sense of partnership and it makes budgeting easier to track. However, in new marriages, partners may feel like someone is always looking over their shoulder.
If you have gotten married recently, how did you decide to organize your finances? Before considering marriage, it is important to agree upon financial matters to avoid any conflict later. To find a saving plan that works for you and your significant other, contact Manufacturer’s Bank and Trust.