How should a couple manage their money?

I’m often asked what is the best way for a couple to manage their money. Should they pool it together or keep it separate? Should the higher earner contribute more or should it be an even split? What if you’re a saver and they’re a spender?

Well, there’s no single correct answer as everyone’s relationships and goals are different. When you are ready to live together, the starting point should be to chat about these things.

Be honest, be open (try not to judge!) and try to find something that will work for both of you.

There will be compromises and there will be things that don’t work, so you’ll need to keep talking. What’s most important is you don’t give full responsibility for your finances to one person, and definitely don’t let them have all the money in their account.

Even if that person has a better understanding – and perhaps interest – in money matters, there’s a risk this can turn into one person controlling, even unintentionally, all the spending decisions.

Personally I’d have a joint account for shared expenses to help avoid this. That’s not just for bills. It could be anything that you’re buying as a couple, from supermarket food to holidays to a new car. Get another for savings, too.

One thing to bear in mind here is that once you do get a joint current account, you’ll be ‘financially linked’. So if one of you has a poor credit history or some hefty debts, that will carry over to both of your credit reports.

But even if you want to share most of your spending, I’d also make sure you have your own accounts and your own savings. Primarily, this will allow you to keep some money for yourself that you can spend and save as you wish.

You won’t have to justify buying something if it’s from your own stash rather than coming from a joint pot.

Plus it offers protection from the thing you think will never happen – the end of your relationship.

As much as no one anticipates it at the start of a relationship, you need to shield yourself in case it occurs.

Whether you split up or your partner dies, having everything in their name will cause you all sorts of problems.

It can even be tricky to access joint cash, too, following a break-up (it’s wise to quickly freeze or add dual sign-off if you think your ex could make off with
the money).

But if you have your own accounts, you’ll always have access to funds in your name, so try to make sure you’ve enough there to cover essentials.

Follow Andy on Twitter, YouTube and Instagram via @andyclevercash

Award-winning blogger and podcaster from Be Clever With Your Cash

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