Discussing and managing finances can be stressful in any relationship. Fortunately, there are some tools that can minimize the stress of those discussions and help each party set healthy boundaries and guidelines for money management. A joint checking account can be one of those great tools!
What is a Joint Checking Account?
A joint checking account is a checking account owned by two or more people. This is very similar to an individual checking account, except that all parties have access to the account and are able to deposit and withdraw funds from the account without the consent of anyone else on the account.
Pros and Cons
A joint account can be a very helpful tool when combining finances and budgets. This will allow all parties to keep funds in one place, which can make saving for your shared goals or paying shared expenses simple and easy. It can also be much more straightforward to track expenses and spending through the account, as all transactions can be found in one location.
Some people may find that a joint checking account may not be a good fit for their needs, especially if the parties have different financial habits or feel uncomfortable with the visibility of their purchases. A solution for this may be to keep your own individual accounts but to utilize the joint account for shared expenses or savings. Another option could be to link your accounts so you can transfer funds between the two electronically, something that is easy to set up with our online banking. Both of these solutions provide the individual control over your funds, while still making it possible to join your funds and share expenses.
Opening a Joint Checking Account
It’s easy to open a joint checking account and the process is similar to opening an individual checking account. It can be as simple as adding another party to an existing account if the option is available. If not, you can set up your new joint checking account together. Just like with other checking accounts, anyone who will be on the account will need to provide their information and identification to open the account.
Once the account is open, all parties will be able to access the funds. This can be done without any other account owner’s consent. However, once you have set everything up on the account, you can decide how to manage the account and who receives any notifications or alerts.
In any relationship, navigating finances and different management styles can be both vital and tricky. A joint checking account can be a great resource to help you join your funds and save for the future!