Practical ways of managing money as a couple
The time between the engagement ceremony and marriage is said to be the best for the couple as both dreams of wonderful times ahead together. Planning and dreaming about the future is a preferred way to escape into the future. However, there are a few practical things that also need to be taken care of, the most important one being that of managing money as a couple.
Each financial decision after marriage should be taken after discussing with each other, be it about taking a loan against property, buying insurance or opening a bank account. The three most common ways for a couple to manage money are:
Using separate bank accounts
Using joint bank accounts
A combination of separate and joint bank accounts
Separate Accounts
Prior to marriage, if the couple is habituated to managing their finances on their own using independent bank accounts, keeping separate bank accounts could be a good starting point for most couples. When the couple begins to live together, certain differences over income and debts that may creep in after some time are inevitable. Keep a simple accounting system to clarify issues so that conflicts can be avoided. Decide who will pay for utilities, grocery, shopping etc. Budget household
expenditures, retirement goals and long-term savings if you are planning for separate accounts.
Joint Accounts
Thought this is the easiest and often a natural choice for most couples, there are a few things that need to be considered. There is no need to determine individual income levels nor is there any need to create a spreadsheet at the end of every month. Family-related expenses like school fees, medical expenses and groceries can be paid from this account. Joint accounts are the easiest to manage, especially where budgeting and spending is concerned.
Separate and Joint Accounts
Though this method is slightly complicated, some couples find this the easiest way to manage money. The income from both partners is diverted into the joint account and all expenses related to savings, retirement, personal loan or home loan EMIs, etc. are managed from this. In addition to the joint account, both have a separate savings account into which a fixed amount is transferred every month. This fund can be used for individual needs or for buying stuff for the spouse.
With lots of communication, a bit of planning and loads of trust, money management as a couple can be easy and lead to a conflict-free marriage, at least where finances are concerned.
Each financial decision after marriage should be taken after discussing with each other, be it about taking a loan against property, buying insurance or opening a bank account. The three most common ways for a couple to manage money are:
Using separate bank accounts
Using joint bank accounts
A combination of separate and joint bank accounts
Separate Accounts
Prior to marriage, if the couple is habituated to managing their finances on their own using independent bank accounts, keeping separate bank accounts could be a good starting point for most couples. When the couple begins to live together, certain differences over income and debts that may creep in after some time are inevitable. Keep a simple accounting system to clarify issues so that conflicts can be avoided. Decide who will pay for utilities, grocery, shopping etc. Budget household
expenditures, retirement goals and long-term savings if you are planning for separate accounts.
Joint Accounts
Thought this is the easiest and often a natural choice for most couples, there are a few things that need to be considered. There is no need to determine individual income levels nor is there any need to create a spreadsheet at the end of every month. Family-related expenses like school fees, medical expenses and groceries can be paid from this account. Joint accounts are the easiest to manage, especially where budgeting and spending is concerned.
Separate and Joint Accounts
Though this method is slightly complicated, some couples find this the easiest way to manage money. The income from both partners is diverted into the joint account and all expenses related to savings, retirement, personal loan or home loan EMIs, etc. are managed from this. In addition to the joint account, both have a separate savings account into which a fixed amount is transferred every month. This fund can be used for individual needs or for buying stuff for the spouse.
With lots of communication, a bit of planning and loads of trust, money management as a couple can be easy and lead to a conflict-free marriage, at least where finances are concerned.
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