Blending Finances with a Partner
The process of blending finances with your significant other is a challenging one, and different couples make different choices in this situation. Whether you have married or are moving in together, some amount of joint financial affairs may make life easier and help to cement your relationship. The choices you make may depend on whether you come into the relationship with established incomes and investments, whether one or both of you have children, and your own financial styles. In any case, beginning your shared financial future with a willingness to communicate openly about money is critical.
One option that some couples choose is to simply retain their own finances. They split expenses in a way that is even and fair, share the costs of entertainment, food, and dining out, and retain two checking accounts, separate savings and investments. They may or may not have a joint account to cover household expenses and split those accordingly. This option can make managing vacations, home purchases, and major costs of that sort more challenging, but also protects each partner’s financial independence. This option is less effective if there is a significant financial disparity between partners, if one becomes unemployed, or if a partner stays home to raise children. This choice may be wise if the two of you find communicating about money matters especially challenging.
A middle of the road option allows both couples to contribute to joint savings, investments and checking accounts. Financial decisions are made jointly; however, both partners retain their own individual checking and credit accounts and free access to their own funds. This option does require more willingness to discuss money regularly and analyze how money is being used, amounts being contributed, etc. Should one partner be unemployed or there be a substantial financial disparity, this may require additional discussion to keep financial equality within the relationship.
Finally, the couple may choose to simply combine their financial affairs, agree upon a budget and maintain entirely joint accounts. This option can be more challenging if the relationship fails, since both partners’ money is entangled in joint financial affairs. It is, however, a more equitable choice if one partner is staying at home with children. Do be sure that you have good communication over money if sharing finances this fully. You may need to discuss spending on a regular basis and be certain to have a budget and stick to that budget.
Whichever financial choice you make as you blend households, keep in mind that money is a problem for many couples. If you find yourselves struggling with communication issues related to money early on, consider meeting with a relationship counselor or financial advisor to help you plan your financial future.
My significant other and I have our own accounts and expenses, however we share all home expenses in half. How fair is this? Well I’m not sure since we both earn different amounts of money and different stages in our life together. When she has more money she will pay more not out of obligation more out of I’m the one who has more and when I have the surplus I pay more bills. We’ve always done this and thus far no consequences. We both agree that the object is to make sure our living arrangements are always taken care of, we have a common objective “to not live on the streets LOL” and we are in a committed relationship so that helps too.
I think what people do is fine as long as both parties agree.
Great Blog by the way! I love the picture on top!
My husband and I have been married now over 21 years. Initially, we began our relationship with two separate checking accounts. As our relationship grew we began intermingling our finances. After about the 10th year, our money was so entertwined we gave up trying to keep them separate. It’s a natural progression of a marriage. You know you’re committed to each other when your personal pronouns change from “mine and his” to simply “ours.”
My partner and I of 3 years do well with our money management. We own a house and 2 cars together. What we did was take all of the bills (mortgage, cars, insurance, utilities). Then those are our combined bills. We pay based on our income. Since I make 70% of our total income. I pay 70 % of our combined bills. He pays the other 30%. We both have our own checking and savings account for our own bills, and whatever else we want. This has worked out great for us! :-)