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Joint bank accounts often illustrate the existence of a great deal of trust and commitment between two people. This trust and confidence exists to such a degree that they are willing to open a bank account in both their names and begin sharing financial decisions and entrusting each other with income. Of course, there may be a number of reasons why two people may wish to open a joint bank account and share responsibilities.
Choosing a joint bank account
Many people reach a point in a relationship where they are both making a number of necessary expenditures that could be done away with. This doesn’t exclusively relate to romantic couples though and can also include those living together in a house share or mutually rented property. The function of the joint account will remain largely the same across the different situations although the number of people with access to the pooled funds may vary.
One of the benefits of a joint account is that it makes this possible. Rather than spreading costs over two accounts, partners can now reduce all expenditure to a single account, minimizing the amount of management that has to go into handling their money and streamlining their finances. The realization that joint finances may be an easier option in the long run is often a catalyst for partners opening joint bank accounts.
Keep solo bank accounts
Joint bank accounts don’t have to be something you rush into immediately and commit to whole-heartedly; they should be something that evolves slowly over time. If you’re not ready to jump straight in, there are other options. For instance, it is still possible to open a joint account and keep individual accounts. If both partners contribute an equal sum to a joint account, which can then be used for combined expenditure, you can test the water and see how well the arrangement works. If you feel you need to take things slowly, talk to your partner and your bank adviser and look for other options.
Transparent spending habits
Many people find that joint accounts reveal things about their partners that they didn’t know before. This is because spending habits are much more transparent, making people’s attitudes towards spending and saving more obvious.
This can be of great benefit, as it is important that such factors are known well before one party exposes themselves to risks, such as a mortgage or loan. A level of trust is required when dealing with joint accounts; though it is easier to see when this trust has been misplaced.