Often it is the notion that when you get married, you open a joint account and save money together with your partner. But with changing times, people’s mindsets have changed, leading to separate bank accounts in a relationship.
Why separate bank accounts work
According to a study by Bank of America in 2018, 28% of people stated to have separate financial accounts whether they shared a long-term relationship or were married. That means every one in four people had a separate bank account. Also, every one in five millennials had no idea of how much earning the partner makes.
When it comes to Gen X and baby boomers the percentage of having individual accounts were 11% and 13%. The question is whether it is a correct approach or not. Everyone can have different opinions but that doesn’t mean any one of them is wrong. Let’s discuss the idea of having a separate bank account in this article and try to reach a conclusion.
Having separate bank accounts not a good idea
Experts tend to believe that having a separate bank account means having a distant relationship with your partner. As per a study by the Atlantic, people having joint accounts tend to have more warmness in the relationship than those having a separate bank account.
Having a separate account also means having trust issues and leading to a crack in the relationship.
Reasons for having separate bank accounts
To maintain privacy and have control
Many people believe that if you have a separate financial account, it means that you will have some privacy and have healthy distance or space in your relationship. It is the same as having your own bathroom and having your own checking account for them.
Some people just don’t want to share some part of their life with others and want to have autonomy and control. And Finance can be one of those parts for them.
Different spending habits
It can be a case where both the partners have different spending habits and it can create arguments that lead to turmoil in the relationship. So what’s the best way to avoid that? Having a separate bank account. It can give enough freedom to both partners and can establish space.
The case of protecting the partner from creditors
Sometimes it’s not about being selfish for having control over life, but it can also be the point where you want to protect your partner from your creditors. Having a separate bank account makes sense here.
When one partner earns more than the other
In the case where one partner is bringing a fortune and the other partner doesn’t have anything, it makes sense to have a separate bank account. It can be inheritance money or it can be marital property, people may prefer to separate it from the joint account and avoid sharing it with the partner.
Every coin has two sides and the same goes with the question of whether people should have a separate bank account or not. There are numerous forces involved such as a divorce, not having enough trust and having different financial stability in life. But all in all, it is on the individual preference and the preference as a couple to decide on whether to opt for a separate bank account or have a joint one.