When should (and shouldn't) you combine finances with your partner?
Combining finances with your partner is a common relationship milestone. In fact, some would say it’s in the same realm as marriage in terms of long-term commitment.
However, the truth is that not all couples follow through with this step. Research shows that one in five people keep their finances separate these days. This includes everything from checking accounts to mortgage payments!
The choice to combine finances can make things simpler and more convenient—but how can you tell if it’s the right step for your relationship? Here’s what to know about when you should (and shouldn’t) create a joint account with your partner.
When to Combine Finances
Combining finances with your partner is a big deal—but it can be hard to tell when it’s the right time. As you consider joint bank accounts, there are a few things to keep in mind.
The first is your partner's level of financial responsibility.
Does your significant other make regular payments for major expenses like rent and car payments? Do they come through when the two of you need to split large bills? If you feel they're financially responsible, it's a good sign that combining your finances might be the right move.
Next is your relationship stage and level of trust. Good signs include a committed long-term relationship, especially one in which the two of you live together, with both of you on the same page about your future plans.
Last is your financial compatibility. This can be a slippery thing to piece together if you haven't had many discussions about your finances. However, now may be a good time to sit down and talk about money if you've never done so.
Get a sense of your partner’s spending and saving strategies, their approach to their outstanding debt, their commitment to investing, and their financial fitness goals. Asking about these details may feel awkward, but determining whether or not you’re on the same page about your finances is crucial. If you feel like you and your partner are of the same mind in terms of finances, it may be time to set up a joint account.
When You Shouldn’t Combine Finances
On the other hand, if you’ve begun to feel as if you and your significant other have different financial expectations, you might want to wait until you feel more in sync. Here are a few things to consider.
Most important, again, is whether or not you’re in a committed long-term relationship. Though it might sound old-fashioned to say so, marriage is the best-case scenario here: practically speaking, married couples who divorce can use the legal system to help separate their finances, while unmarried couples may have a harder time in the event of a messy separation.
Next, are you on different pages about your financial habits? While it’s fine to have mildly different ideas about how you spend your money, the last thing you want to do is pool your finances with someone whose financial goals and habits are in direct contrast to yours.
In addition, there are a few red flags to be aware of.
If you or your partner are uncomfortable about the topic of finances, or if either of you isn’t ready to be transparent about your bank account, it’s not a good idea to combine finances. This is especially true if you find that your significant other is secretive about their debts or spending.
Talk to Your Partner to Decide What’s Best
At the end of the day, every relationship is different—which is why it’s impossible to give a simple answer about when to combine finances. Sitting down for a financial discussion with your partner is the best way to get a sense of your mutual readiness to take the leap, so make time to get on the same page about your money matters.
If you’re ready to combine your finances through a joint account, Chief Financial Credit Union is here to help. Take advantage of our simple online banking tools to get started, or contact us for assistance.