Wednesday, 10 September 2014

Are You Ready To Open A Joint Account With Your Partner?

Opening a Joint Account with your partner is a huge step towards a more serious commitment into your relationship.

Are you ready for that level of commitment?

Don't get me wrong, there's a HUGE difference between being ready to commit and committing to be ready.

Simply put, being ready to open a joint account as a commitment and opening a joint account to BE committed is very very different.

Never ever open a joint account simply because you believe that this is the next step in a committed relationship. Trust me, you'll know when that time is here.

Now, why open one?

Maybe you want to commit to share your financial issues together, or combine your finances for simplicity and convenience. There's nothing wrong with that. But you don't necessarily have to combine them together and let it be. You should both keep a separate individual account and open a joint account together. It should serve as an addition not a replacement. :)

Contribute equal amounts each month and let the funds pay for your groceries, or bills etc. Heck it can even pay for your dates, movies. It'll give you an idea of what to expect and a feel of how to use it :)

Or maybe you're on a more serious level. You decided you want to save up for your wedding, house, honeymoon etc. You contribute an equal amount every month and watch it grow from there. Maybe you wanna take those funds and invest it (both you and your partner should discuss this beforehand)

The thing is, before you open a joint account, BOTH parties, not just you OR your partner should be ready and have a common understanding of the matter at hand.

They should not be opening with you just because they are afraid of offending you etc etc.

And needless to say, there should be an existing level of trust between you and your partner. You don't want to risk them drawing all your money and then disappearing into the sunset..

You can now view your partner's spending habits and decide if he/she is the one for you. Maybe you're both hardcore savers (which is a good thing) or you both are hardcore spenders (in that case a joint savings account is absolutely pointless) but most commonly one would be a spendthrift and one would be the saver.

Opening a joint account is not supposed to be fun, or lovey dovey. It's about bringing maturity into a relationship. If you're not financially ready or mature enough, don't open one. You'll only complicate things. Arguing about money definitely isn't romantic now is it? :)

Question: What if we break up? What if this relationship doesn't go as expected? Won't it complicate things even more?

Answer: Well love, life isn't always a bed of roses. Things don't always go as expected. Therefore, you should contribute an equal amounts each month. If anything unexpected happens, just divide the money by half. Simple.

Key points to take away:
1. Being Financially Mature
2. Strong level of trust and commitment
3. Mutual understanding.
4. Have a common view, one saving and one spending isn't going to workout.
5. Have a separate bank account, a joint account should be an addition.

What does everyone think? I'd love to hear from you :)

Posts you might be interested in:

Signing off,
Teenage Investor


  1. Wow, I never thought about that. Like you said, very practical and mature, but not very lovey dovey. I think this is a necessary step to gauge maturity, and have equality and respect in the relationship.

    Yes, I should definitely open up a joint account before I get married to monitor her spending habits, haha.

  2. Hi MH, I'm glad my blogpost gave you some food for thought haha!
    Yes it's a huge step to commitment.
    Incidentally would you like to link up? I'll add your blog to my links :)

  3. Haha I would never open a joint account with my partner until he is officially my husband. And a separate bank account for my own is a must, and of course he can keep his own bank account too.
    LOL MH, maybe her true colors will appear only after marriage. ;)

    1. Hi Caprichososhuz! I feel it's all about the situation at hand and how much you can trust your partner. In that sense, having a joint account doesn't mean pooling all your money together one shot. It can be saving towards a common goal, maybe a staycation, marriage etc :)