Marriage and Money

Financial Management for Newlyweds: Combined or Separate Accounts?

Making this choice depends a lot on your financial habits and your collective discipline as a couple. Here are some suggestions on how you might tackle this new phase of your financial life.

As a newlywed, you've made a lot of life-changing promises and commitments lately. But have you discussed your financial plan including whether or not to merge your finances? Traditionally, newlyweds were expected to merge bank accounts after marriage, but many modern couples roll their eyes at the idea of this perceived “necessity”. Which choice is right for you?

To merge, or not to merge?

If you've been married for more than a few months, then you probably have a working system for dividing up the bills and other regular monthly expenses. If you currently don't have such a system in place, then it's time to make a budget, divide up the fiscal responsibilities, and discuss shared financial goals. As long as you work together, you're sure to find an equitable way to keep the bills paid and still put aside a little money for the future.

Once you have your financial game plan locked down, it's time to broach the topic of merging accounts. Do you fear that combining your finances might create more problems than it solves? Are you or your partner concerned that merging means sacrificing your financial independence? Many couples enjoy the autonomy of maintaining separate checking accounts after marriage, while other couples insist upon a greater degree of transparency and teamwork in their relationships. You just need to talk it out and see what works best for the both of you.

And while maintaining separate checking accounts can often help reduce friction over purchasing decisions, it can be counterproductive if one partner's unhealthy spending habits go unchecked. Fortunately, if you're on the fence, or you can't agree, there seems to be a fairly simple solution for the merge vs. don't merge debate: try doing both.

First, maintain separate personal accounts, but create a joint account for joint expenses such as rent and utilities. Then, decide how much money from your personal accounts you both should allocate to your joint account each month. Or, if your monthly income tends to be less predictable, establish your joint account as your primary account for paycheck deposits, and do the opposite. This way you can ensure that bills are paid together before dispensing any discretionary income.

You can educate yourself further about other common money management issues that newlyweds face by visiting Protective's tips and advice for buying your first home, buying or leasing a car, or protecting each other financially with a life insurance policy.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Financial Management

As a newlywed, you have a lot of decisions to make - where you're going to live, setting up a household, and creating a budget. By discussing whether or not to merge your checking accounts can raise many concerns. Begin by establishing solid financial management practices early in your relationship so you'll both know where the money is going and how to better budget and save for the future. For more information, visit the Protective learning center.

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