by Joyce Priddy

Created on: February 14, 2009

There are definite pros and cons to sharing a checking account with one's spouse. When most families were supported by one spouse, it made sense to share a checking account. But times have changed. Many families now simply must have two incomes to support themselves. Does that mean that two incomes are better served by two accounts? In most situations I believe that answer to be yes. There are many factors to consider when deciding how to manage your family's finances.

How much do you need to keep in your joint account?

It really depends upon what your needs are and how you want to spend your money when determining how much money you will need to keep your joint account. Some couples use a joint account to pay for general home expenses such as mortgage, insurance, car payments, phone bills and utilities.
This is a good way to keep track of those bills that must never be missed. Total your monthly set expenses and you have determined how much money must be available in the joint account. Other couples may divide their set expenses and pay them out of separate accounts. They would figure their minimum balances in the same manner.

Is there an advantage to having separate accounts?

I don't think there are many women who would disagree with the fact that have their own checking account is a definite advantage. In my personal situation, my husband and I each have a separate checking account.
We tried to share and determined that our eyes for detail were very different. He had no concept about how to balance a checking account which led to big problems. When sharing one account, there must be good communication to both check signers.
When both check signers assume there are $X dollars available for spending and do not communicate with each other that he/she plans to use that money, the account could be in big trouble.
And there usually ends up being an ugly confrontation on the part of both check signers!

Avoid the confrontation!

After a couple of years of trial and error, we found that the best solution for us was for me to take care of the bills and keep enough money in his account to cover his "stuff".
We are basically a one income family as we are self-employed. So what works for us is that I manage all the finances and he gets to write checks without even thinking about it. Doesn't sound fair, does it. But it works for us. I can relax knowing that I'll have enough in my account to take care of what I need and he knows what his general balance is and to let me know if he's going to do more than fill up his tank or go out to lunch.

The bottom line

Every situation is unique.
Most couples will have to travel the finance road together for awhile to determine what the best solution for their circumstances is. Communication is the key. That, and making sure you have enough money to keep the account in the black!

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