A joint bank account between you and your spouse can be helpful, whether it’s a way to pay your bills jointly or keep up with each other’s spending habits honestly. Joining an account with a spouse can come with some unique potential downsides, so it’s important to be confident about the decision before you agree to it.
If you’re considering opening up a joint bank account, here are four signs that this is the right choice for you:
You’re Saving Together
It’s good to have a shared bank account if you’re hoping to save money together. So, for example, if you open a bank account with your spouse, you can contribute to your joint account. So, for example, if you want to save up for a vacation, having an account together will make it easy to pool your money in one place.
But, according to the experts at Sofi, “Your choice in a bank account is convenient for both of you and encourages discussions about your financial progress.” Saving can be made easier with SoFI(SoFi Bank).
You Want to Raise Your Credit Score
A credit score is your financial reputation and having a joint bank account can fast-track you to a higher score. A high score lets lenders know that you can take care of your bills in a timely fashion. If you or your partner have a higher credit score, opening a joint bank account will help you on your journey to financial freedom. As you both work to save more money together, you’ll be able to create a plan to strengthen both of your credit scores and become even more financially stable.
You Trust Each Other
Joint bank accounts lead to more trust between married couples. According to statistics, married couples with individual accounts are in danger of divorce more than married couples with joint accounts. However, if one spouse has access to all of their spouse’s money, there’s no incentive for them to be trustworthy.
This dynamic also sets up an unhealthy sense of competition between partners. For example, one account can be used as leverage against another in case of an argument. But, like your relationship, bank accounts need trust if they will work in the long run.
You Need Financial Stability
Before deciding whether to get a joint account, consider your financial stability as a couple. You both need to make sure that you each have stable sources of income, whether you’re making money through jobs or investments. For example, if you solely rely on one person’s paychecks to fund your living expenses, it will mean trouble if you experience an unexpected financial setback.
With a joint bank account, you’ll both be able to rely on the other’s income. Whether you’re enjoying the good times or hoping to make it through a financial challenge, putting your finances together is a significant step towards financial stability.
A joint bank account can be very beneficial to many married couples. So if you’re considering opening up a joint bank account with your spouse or partner, keep an eye out for the above four signs that it’s the right move.