Starting out a new life as a couple is an exciting prospect – but some practical issues must be dealt with.
One of those – whether to have a joint checking account.
The decision may not be as easy as it sounds. There are a number of things to consider when it comes to having a joint checking account.
"Well, one of the pros is that you both have access to the account, so that’s a good thing. In the event that you’re not able to get money, you have a debit card, not on the island or not near a financial institution – your partner can still come in and make a deposit and you’ll still have the funds available to you,” explained Jill Pascau of Central Pacific Bank.
As you might imagine, there is a downside to having a joint account.
"Some people might feel a little confined that there isn’t your money and my money, that it’s not considered our money. Also if you were to make a large withdrawal or a large purchase, you might want to tell your partner just in the event that your partner goes and buys something and you may find out the hard way that there wasn’t enough money in the account to cover."
There is an alternative – that would be for each partner to have a separate checking account and a joint checking account. There are advantages.
"One of them is that you have financial freedom. You have a joint account yet you do have your separate accounts, you have your separate expenses. With communication with your partner, it would be good to decide what that joint checking account or your shared account would be used for."
Pascua says the key thing to remember in this discussion of checking accounts is – communication.
"Talk about the things you want to do – if you want to purchase a home, if you’re planning on having children soon. You want to make sure you’ll be able to put those finances on the side and save up together."
See the original article at: KHON2 Developing Stories
