Joint Account as a Couple? Merging Research on Finance

Have you been in a relationship for a while, are you moving in together or have you just gotten married? And are you wondering whether you should merge your accounts with your partner? You are not the only one struggling with this question. There is often conflicting advice on this topic. Some recommend merging everything, while others argue for (partially) separate finances. So, what should you do?

Merge accounts or not?

When a relationship gets serious, you’re often faced with a fundamental decision about how to organize your personal finances. Ultimately, you come to the question of whether you should merge the accounts or whether it would be better to keep your finances separate? A recent study published in the Journal of Consumer Research recently investigated this.

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The big question in the research: how merging finances in a joint bank account affects the quality of relationships. The research shows that combining finances as a couple has a protective effect. The results show that it stops the decline in relationship quality.

Jenny Olson of Indiana University, lead author of the study, explains: “We conducted this research because of the conflicting advice often given to newlywed couples. While some sources recommend merging everything, others say partners lead separate financial lives.”

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The research

To provide a scientific answer to the finance question, the researchers conducted a two-year study. The participants (newly engaged or newly married couples) were divided into three groups: merging finances, keeping separate accounts, or no intervention (control group). What did the researchers discover?

The researchers found that couples who kept separate accounts or had no intervention experienced the usual decline in the quality of their relationship. However, couples who merged their finances were protected from this decline. This is mainly due to the improved financial harmony among couples with joint accounts, the researchers say, resulting in less conflict and greater satisfaction with both partners’ money management .

3 reasons why merging works

Merging finances isn’t the best choice for everyone. This brings with it some potential challenges, such as the feeling of loss of autonomy. Some people value separate financial lives and don’t want their partners to see every expense. Merging finances can also become more complex if your partner has debts or financial problems. However, merging finances can lead to positive outcomes for relationships, and here are three reasons why:

1. Joint accounts can encourage you to think about how you justify your purchases to each other, leading to less conflict and better financial well-being.
2. The transparency that comes from opening a joint account allows you to better understand each other’s priorities and align your financial goals.
3. Pooling money into a joint account can promote a sense of belonging and eliminate the “your money” versus “my money” dynamic.

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Advice from the researchers

However, merging finances also comes with a number of challenges. “We recognize that merging finances is neither risk-free nor ideal for all couples,” says Olson. “That said, our results provide the strongest evidence yet for finance merging.” Olson and colleagues offer the following advice to couples.

1. Find a balance

Having open conversations with your partner is essential. This allows you to determine together how you want to organize your finances. One strategy that can be helpful here is to maintain joint accounts with separate credit cards. This way you maintain a certain degree of individual financial freedom , while at the same time you have shared responsibility for your joint expenses. It’s a win-win situation that can strengthen your relationship.

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2. Set spending limits

Setting spending limits can be a useful tactic. This means that you agree on an amount within which each of you can spend freely, without needing permission from the other. This gives you both a sense of individual control and freedom within the relationship, while still working together toward your financial goals.

3. Always weigh the pros and cons

It’s understandable that you’re unsure about merging your finances. It’s a big step that needs to be carefully considered. By having ongoing conversations, you can weigh the pros and cons of joint finances. Listen to each other’s concerns and needs, and adapt to new challenges and needs as they arise. It’s about the two of you making an informed decision that is best for your relationship and individual financial goals.

4. Have financial date nights

To ensure your financial conversations don’t become fraught, regular and dedicated ‘financial date nights’ are essential. Schedule specific times when you can sit together and talk about finances . This gives you the opportunity to prepare and avoid any surprises. This can help you lay a strong foundation for a healthy and happy financial future.

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