Finances

[Sascha Fitzpatrick]

How will you manage money when you get married?

Will you have a joint account? Will you have a joint with two separate accounts for 'personal spending money', or will you just continue with your separate accounts.

I think (if I end up married to my bf) we will probably still have separate accounts for 'spending', but will pool the rest of the money into one joint account that will pay the regular bills. I think we'll pay off one of our credit cards (we have 2), and cancel it, and then just keep one.

How about you?

Sasch

 

[Snowy]

joint account...and if we have any kids they will have thier own accounts that they will be told about on thier graduation night...will be a secret until then...talk about a big surprise...here's your diploma and your own savings account started ont he day you were born.

 

[Pope Gonzo]

We're going to have a joint account. Since I'm a much more math-oriented person, I'll end up doing all the finances myself, and keeping track of a joint account will just make that easier.

 

[*heidi*]

here's your diploma and your own savings account started ont he day you were born.

That is a fantastic idea!!! Mind if I steal it for my own kids? I don't think I would be able to wait that long though, I would want to give it to them as soon as I thought they could handle the money wisely.

Me and my HTB are going to have all joint accounts, nothing separate. The only reason why I see people having separate accounts is to make that evil word that starts with 'D' easier. That's NOT going to happen to us, so we aren't having separate accounts! Having all joint accounts means less documentation and less hassle of keeping track of the finances.

As far as managing money goes we are both really into doing that sort of thing now, so we both want to be involved in that. Stuff like paying the normal bills is no big deal though, so either of us will do that (I suspect I will volunteer myself though - control freak). Investments and larger spending will all be discussed and done together. All spending will be budgeted for together at least monthly.

Everyone seems to carry on like finances are the biggest cause of all problems in a relationship, but if two people have a good income, good money sense and no debts what-so-ever entering into marriage then I don't think it will be such a big deal. (Except the whole thing were my HTB has been brought up on mostly Brand Name foods and I have been brought up on mostly Generic brand foods! You cannot convince some people that just because something doesn't have a shiny colourful package it is still high quality food!)

 

[Snowy]

sure go ahead use my idea...

 

[Pope Gonzo]

All the kids in my family had savings accounts growing up. I think my parents put enough in to start it, but everything else I had to put in myself. I don't really plan on paying for very much for my kids after they're into high school. But we'll cross that bridge when we come to it

 

[LiberatedChick]

My husband and I are yet to finish setting up our bank accounts the way we want them. Basically, our salaries will be paid into a joint account, then a certain amount each month will be transferred into our separate accounts. We both get the same amount transferred and that is the money we're allowed to spend on whatever we fancy for that month. The rest of the money in the joint account is used to pay the bills and then another bank transfer will take place to transfer a set amount into a savings account. We'll then transfer whatever is left in the joint account into the savings at the end of each month.

 

[nuarc]

Wow Starelda, that is a spectacular idea. We too will have a joint account with seperate accounts on the side, but I never thought of transferring what was left after the bills are taken care of into a savings account. That is such a great idea, I hope you dont mind if I...eh hem "borrow" it. Im so happy that we have this forum. Sascha, you come up with the greatest topics, and Starelda you have such great ideas.

 

[bkg]

First - this is a fantastic topic for engaged couples to be discussing... and AGREEING on before the nuptuals...

My husband and I are yet to finish setting up our bank accounts the way we want them. Basically, our salaries will be paid into a joint account, then a certain amount each month will be transferred into our separate accounts. We both get the same amount transferred and that is the money we're allowed to spend on whatever we fancy for that month. The rest of the money in the joint account is used to pay the bills and then another bank transfer will take place to transfer a set amount into a savings account. We'll then transfer whatever is left in the joint account into the savings at the end of each month.

This is how my ex-wife and I set it up when we first wed. I thought it worked great, but we did struggle with what was defined as "whatever we fancy"... So make sure that it's defined EXACTLY what that means. Also, make sure that you communicate about times that you will need money beyond what is in that account - new clothes for a new job, for instance.

We eventually went to completely separate checking, and then transferred set amounts into savings and "bills" every month. PLEASE do NOT do this. If one person makes more than the other, he/she all of a sudden has a) no accountability to the partner and b) more spending $$ than the other. Bad idea - it caused a huge rift in my marriage.

A person once told me " the only reason my wife and I have survived is because we have only one checking account... it forces us to talk about things that others chose to not talk about... it forces us to talk." Wish he had told me that before the wedding.. Anyway, I think he is right.

One checking account, one savings account (+ college funds, I guess) and LOTS of communication.
bkg

 

[Cright]

I'm not spectular with budgeting and finances.. I've given full disclosure of all of what I have and do not have w/ bills to John.

We've agreed that he'll take care of the bills.. I'm very happy with this (as is he) and as long as I know what bills we have and where our money is in the event I need to write them out I'm totally fine w/ it... as for how many accounts and of what type.. again.. I'll leave it to my man when the time comes

Carina

 

[laura-ann]

Well since Jonno is almost finished his Bachelor in accounting (teeheehee) he will be managing our money! he pretty much does this already! scrroooge joking! But we will have one bank account so that he can keep track of my spending! But i like that. (as long as once in a while I can buy stuff ) Its more than likely that we will both be earning a reasonable amount (Hes an accountant im a engineer) for the next few years until we decide to have kids anyway - I will be a SAHM (cant wait x1000000 )

 

[*heidi*]

Basically, our salaries will be paid into a joint account, then a certain amount each month will be transferred into our separate accounts. We both get the same amount transferred and that is the money we're allowed to spend on whatever we fancy for that month.

starelda, I'd be interested in hearing how this works out for you. I'm wondering how the individual spending thing will work in my future marriage. I plan that we will have all shared accounts, but if I wanna buy an ice coffee a couple of times a week or an item of clothing once every few months then it would be harder to keep controls, budget wise, on what is getting taken out for those kinda things. I'm thinking maybe separate accounts would be good for sticking to the budget for little things, but yeh.... anything separate seems to me like asking for trouble.

How I work my personal finances now is like this. I have 3 accounts (1 working account, 2 high interest accounts for saving). The working account is where my money gets paid and where I withdraw from and pay bills. The two savings accounts can only be accessed from the working account. One saving account is for short term things like text books or clothes, the other savings account is for long term things like a car and house. I never withdraw from the long term savings account (except when I buy the house or car). If I limit my withdrawals from the working account to 4 a month I have no fees what-so-ever! I withdraw from the working account to buy the ice coffees. I suppose that could work when I am married too, just maybe have another account to budget for the ice coffees and other daily/weekly things.

I think working out the personal spending thing could be one of the harder things to do in early marriage. I know that my dad keeps a stash of cash for himself to spend on what he likes (including presents for mum), but I don't really like that idea. My parents don't really seem to buy anything for themselves though! Only small food items with the rest of the groceries.

I really don't like the idea of the man (or woman) controlling all the money and giving the wife (or husband) an allowance though. It must work for some couples though.

 

[LiberatedChick]

I thought it worked great, but we did struggle with what was defined as "whatever we fancy"... So make sure that it's defined EXACTLY what that means.

Oh yes we have defined this. My husband likes spending money on dvds, I like spending money on clothes and music but before now we've never set ourselves a limit so we would both spend more than we should on things that aren't actually needed just things we'd like to have.

I really don't like the idea of the man (or woman) controlling all the money and giving the wife (or husband) an allowance though. It must work for some couples though.

Yes we don't like this idea either and we're both guilty for spending more than we should on non-essentials so we're setting ourselves both an allowance. That way it's equal and neither one of us gets more than the other. Then we can either spend it or save it up for spending on bigger items (For example, I like playing guitar, my husband plays violin....some of the items we'd like for these can be pretty expensive).

starelda, I'd be interested in hearing how this works out for you. I'm wondering how the individual spending

I'll let you know....currently we're trying to clear off his overdraft so once that's sorted we'll finish re-arranging things.

 

[eyeliv4God]

You've got me STUMPED! on this one!

 

[LiberatedChick]

You've got me STUMPED! on this one!

Why stumped? If you haven't thought about it before now's the time to start, discuss it with your SO too.

 

[IslandBreeze]

We have a joint account. We have a hard enough time keeping track of one regular account! I can't imagine keeping track of two or three! My brother-in-law and his new wife are keeping separate accounts, and it's wreaking havoc on their six-month old marriage already.

 

[Maeyken]

Growing up, I thought ALL married people had the same bank account! My parents have a chequing and a savings account. My mom kept track of the household finances, and usually told my dad how much she'd need for the week. (in the days before debit!) She was a SAHM when I was little, otherwise she would have just gone to the bank herself. Now she works part time, and also has a debit card, so she has ready access to the money, but they still just have the one account. I think that's how I'd want to set up my finances once married, so unless my husband has some sort of aversion to sharing, that's what I'll do! (and if he is that much of a control freak, I would have to reconsider getting married! lol)

 

[InTheFlame]

Starelda, we're doing things the same way as you. We're both a little dodgy when it comes to sticking to a budget, so thought the separate spending accounts would be a good move. And we each get the same 'allowance' - it just seemed fair to me to do it that way.

We've specified what comes out of the joint account (groceries, bills, travel expenses etc) and what has to come out of personal (bought lunches, clothes, shoes, DVDs, CDs etc). We've been fine so far but we've only just gotten it set up properly - it may need fine-tuning!

 

[PurpleBunny]

My fiance and I already have a joint account, for wedding expenses and it will be our chequing account once we're married.

However, we're going to keep separate chequing accounts as well, with small balances. There are two reasons for this:

1) It's easier to surprise one another with gifts this way

2) Should he or I die fairly young, the other will still have some sort of financial history/credit rating

But it's also quite likely that my name will be on his 'personal' chequing account and his name will be on mine. I mean, what's ours is OURS

 

[Fearfully Made]

After we get married we will have a joint checking and saving account. I'll probably be responsible for keeping track of everything. We'll both get debit cards so we will have easy access to the account. That will require good communication between us so we can keep track of how much we are spending, but there is nothing wrong communication. I think it should work pretty well.