Joint accounts can be a great financial tool, but they can also be the source of conflict for partnerships.
Before setting up a joint account, consider the following pros and cons to ensure you are both experiencing mutual benefits and avoiding unnecessary conflict.
Benefits / pros
– Joint accounts are great for individuals with shared expenses such as bills or a mortgage. They make making payments a much more practical experience.
– Joint accounts for savings give each party accountability, it gives you more responsibility and accountability to make regular contributions.
Risks / cons
– Opening a joint account means you have access to the other party’s finances, and they have access to yours. You need to be certain that you trust the other person deeply to feel secure that they aren’t going to spend the money in that account in a manner that you haven’t both agreed to.
– If you or the other party are not great at communicating assertively, opening a joint account could become a source of tension, causing strain on the relationship. To avoid this, set clear expectations and boundaries as to how much you both contribute and how the money should be spent.