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For some, opening a joint bank account is a milestone in their relationship.

And it can make life easier when it comes to paying shared bills and working toward shared financial goals.

But increasingly, couples are choosing to remain completely independent when it comes to money, according to certified money coach Natasha Janssens.

“I see more and more (especially young) couples keeping everything separate,” says Ms Janssens, who is based in Canberra/Ngambri.

She says sharing money is not a prerequisite for a financially healthy relationship, but having a joint bank account does have benefits if managed properly.

The benefits of joint bank accounts

While for some people it means keeping finances completely separate, Ms Janssens says it doesn’t necessarily mean avoiding financial conflict.

It can also get tricky when there are children in the picture, or if something unusual happens, such as someone in the relationship gets sick and can no longer work, she says.

For these reasons, she says it’s worth having at least some money in a joint account.

In addition to the logistical benefits, Ms. Janssens says it can give some couples a greater sense of “being part of a team.”

“The fact that you share the account can facilitate discussions (about money), compromises and goals.

Financial planner Michael Khouri hosts a podcast about relationships and money, and says having a joint account can help couples get on the same page.

“It’s a lot easier to work on goals together… (and) it creates accountability between couples.”

Joint bank accounts are not without potential problems

Sharing money has the potential to create discussions about how that money is spent, Ms. Janssens says.

“Did anyone withdraw money that was not consented to?”

But she adds that this can also happen in relationships where money is completely separated.

Mr Khouri says joint accounts involving, for example, daily expenses can provide transparency but can leave people feeling like they have lost their financial independence or privacy.

“My wife and I have separate bank accounts for everyday expenses. It’s less stressful not to see each other spending money, and it just gives us that independence.

‘But it’s all part of an overall strategy. We have a general plan for the family and other bills are joint.”

Joint accounts can also give someone the opportunity to commit financial abuse, Ms. Janssens says.

One in six women in Australia experience financial abuse. Knowing how to protect yourself can increase your financial security.

Consultation in advance

It’s a good idea to get to know each other’s monetary values ​​and “story” before combining finances, says Ms. Janssens.

“What are your financial fears? What did money look like growing up? Are you a spender or a saver?”

She says knowing these things about each other will help you achieve success.

Ms Janssens also recommends drawing up ‘rules’ for the account, as well as plans for how conflicts will be resolved.

“Define what a joint expenditure is. Who will pay attention to what? Are we going to consult at certain times?” are some examples of conversation invitations, she says.

Couples should be prepared for the topic of equity versus equity to come up when discussing what each person should contribute to the account.

“Look inside and decide: what is fair to you? Become curious about what that is,” says Ms. Janssens

Mr Khouri says it is important to work out a budget together before opening a joint account.

You can use savings calculators And budget planners to help.

Start small

When it comes time to open the account, Mr. Khouri recommends that couples start small.

“Take it in small steps. Start with an account that you both put money into to cover the bills.

“It’s quite simple and you can’t stuff it up.”

People should discuss options with their bank, Mr Khouri says, and beware of pitfalls such as accounts that don’t allow direct debit, or which charge fees if you don’t deposit a certain amount each month.

If your first experience with a joint account goes well, he says, you can consider opening a joint savings account.

“If you want to add a level of control, you can make it require both parties to sign to access the money,” says Khouri.

Finally, you can consider opening a joint account where both your incomes are deposited for daily expenses, but not everyone will be comfortable with that, he says.

‘Every couple is different.

“If someone in a relationship feels they are at risk of being put in a vulnerable situation where they need money, it is important that they maintain a level of financial independence.

“Follow your instincts.”