Joint Checking Accounts, Smart Idea or Bone of Contention?

Joint checking accounts have been around for quite a while. Back in the old days, the husband brought home the paycheck, and the wife needed access to the checking account in order to pay for the groceries and other items related to the house.

Times have certainly changed, and it's more common than not for both husband and wife to be working. A lot of couples wonder if they should each have their own checking account instead of pooling their monies into a joint checking account.

This feeling of independence is natural because no matter how close we are to our loved ones, we often feel it's nice to have some money that is just ours. It's my money and I can spend it however I want!

But if you drop joint checking accounts, paying common expenses can get a little confusing.

For example, who makes the house payment? Who makes the car payment? Who pays off the credit card debt?

You can't just say, "Honey, since you make more, you pay off the big stuff, and I'll keep my money for spending. I'll... use it to buy gifts for you! Yeah, that's it."

Sorry, Charlie. That approach probably isn't going to work. But there is a way to make joint checking accounts work well in dual-income households.

The best approach it to create a joint account that you each contribute an equal percentage of your earnings to each month. Then each of you can keep or create individual accounts as well. Figure out how much you need to pay the household bills (+10% or so for savings) and make sure that much money goes into the joint account. In order to get it there, you'll each make deposits, equal percentages of your income.

Note I didn't say you would each deposit an equal amount. Chances are you two are not bringing home the exact same amount of money each month. If you bring home $2,000 a month and your spouse brings home $4,000 a month, it's hardly fair for you both to put $2,000 into your joint checking. That would leave you with no extra money of your own and your spouse with $2,000 to play with each month. That's not fair.

What's fair is for you to figure out what percentage you two need to put in order to create a joint checking account that meets your household expenses and allows you to save together. Then whatever is left you can put in your individual accounts.

Don't get hung up worrying about who makes more and who contributes more to the household. You both work hard, and you both deserve to have an equal say in what your money goes toward. Nobody should have a larger voice in the financial decision making.

The only thing you need to worry about is whether both partners are bringing all the resources they can into the relationship. Nobody should be holding back, and nobody should feel cheated. By having joint checking accounts and individual checking accounts, you will have a good foundation for keeping everything fair.

This way you each have money of your own, and you have a joint account that covers the necessities. This is a recipe for a financially happy marriage, where money fairness isn't a bone of contention.