Is Having Separate Bank Accounts a Good Thing for Millennial Couples?

There comes a phase in every romantic relationship when you feel the necessity to share your financial life with your partner. When such a situation arises, you arrive at a crossroad where you need to choose which turn to take. You can either maintain a joint bank account with your partner or keep on maintaining individual accounts. Millennial couples are a bit different from the other generations as they are more likely to maintain a separate bank account for themselves. There might be a lot of plausible reasons for this, but both the advantages and disadvantages need to be considered.

Millennials Would Probably Maintain A Separate Bank Account

A recent poll has revealed that millennial couples, in comparison to the other generations, would probably prefer to have individual bank accounts. As per the results of the poll, 40% of the millennials aged between 23 and 38 pointed out that they do maintain a separate bank account from their spouse or partner. None of the other generations has such a huge percentage of people holding the same belief.

Around 31 % of the Gen Zers (18 to 22 years old),  and 34% to 35% of the Gen Xers )39 to 54 years old) prefer individual bank accounts. However, individuals, aged around 55 to 73, called boomers, are less likely to prefer individual bank accounts. There can be several factors why millennial couples opt to maintain individual bank accounts. The last big recession is one big reason why these guys have become a bit more cautious regarding financial matters. Kids of divorced parents may have a valid concern about combining their money too closely with that of their spouse or partner. Another reason why they decide to choose a separate account might be that millennials typically spend less on weddings than their previous generations.

The Pros and Cons Of Having Individual Accounts

An individual bank account has its perks too. It gives you the liberty to spend money the way you like to, without having your partner hold you accountable for it. It also helps you develop the responsibility of spending wisely, with limited resources. Not having a joint account is likely to reduce fights over financial issues. Besides separate accounts are beneficial especially in times of a breakup as splitting assets becomes easier.

Young people who hold individual accounts will not have to worry about being stuck in a relationship because of financial dependence. However, there are certain downsides too. If couples don’t share an account, attaining financial objectives might become an uphill task. Splitting the expenses could prove to be tougher in case of separate accounts. Moreover, the risk of financial infidelity looms large. Couples, involved in a serious relationship, must keep in mind that a partner’s financial decisions would have an impact on one’s monetary goals.

Should You Maintain Separate Bank Accounts?

Irrespective of whether you already have a separate bank account or thinking of getting one, it makes sense to have a joint account with your partner. It is important to discuss your thoughts and decisions with your partner and make sure the two of you are on the same page. Most importantly, discuss aspects like opting for credit cards or not and which significant financial goals you need to share.

Sitting down and taking monetary decisions together, is helpful even if you do not have a joint account. Hence, initiating talks as soon as possible is of paramount importance if you want to avoid any unpleasant surprise.

Savings Accounts Rates Are At An All-Time High Now

Many people are losing out on guaranteed returns as their savings account in a big bank is yielding next to nothing. There is a list of the best online savings accounts for the year 2019 that can help you rake in more than 25 times the average interest rate that you get from your savings account. So, without delay, surf through them and get aware of what benefits you are going to receive.

Having separate bank accounts does have its benefits. However, there are downsides as well. Couples must decide which choice to make, keeping their financial objectives and the future of the relationship in mind. Don’t hurry and choose wisely. It’s always advisable to be open to your better half, more so when it comes to finances.