This week we are going Dr. Phil on the show. We are talking about both love and money. And trying to give some actionable ideas on how to broach the subject of money with a loved one and also talk through some pros/cons of joining bank accounts.
Eddie and Matt express how they have done this week with regards to their individual Wela. And Eddie has a festive Coupon Carl Corner to help everyone save. Matt tackles the headlines and explains what the headline “The End of QE” means in general and how it impacts our individual lives.
Come along for the ride as the conversation entertains and also provides some actionable steps.
3 different types of joining bank accounts (Pros/Cons)
The Union Separated by Money:
This is where each individual in the relationship keeps their accounts completely different. Expenses are either divided up equally or each person is in charge of particular household expenses and utilities.
- No worries about spouse not having same spending habits as you
- Continue to have control of your own monies, independence
- A bit more difficult for paying bills
- Constantly have to have conversations surrounding money
- Personally, this keeps an unknown in the relationship, which provides just another opportunity for fighting
- Could put spouse in tough spot if something were to happen to the other spouse. Even with a will, it could take months before living spouse gets access to funds.
The Semi-Merged Money Marriage:
This is where each individual gets their paychecks put into their own individual (separate) bank account and then each member of the relationship funds a joint account from which expenses are paid.
- Maintain some independence
- Some sense of union… letting personal shield down a little
- Could be difficult when each spouse has different salaries… would have to use percentages rather than actual dollar amounts
- Have three different accounts to manage
Taking The Plunge Money Marriage:
This is where you create a joint bank account and all future paychecks go into this account. This account is where expenses are paid along with everything else. To be a little flexible, each partner could take a set (and same) stipend every month for their own account to do whatever they want with.
-Sense of union, commitment
- Easy to track spending
- Much easier to pay bills
- The other partner can run with the money
- The other spouse can spend all the money before their partner is able to identify it
- Have pre-marriage and post-marriage accounts to manage
Come take a listen and begin having fun with finances. We sure as heck are!