Roses might be red, but personal finances are not always for two, as only one in eight couples in a long-term relationship keep all of their finances in a joint account, research reveals.
One in 10 prefer to keep an element of financial independence, and four in five who have a joint account still keep a separate kitty for their spending.
Reasons to keep their profits private included not feeling comfortable sharing how much they spend or earn (23%) and not trusting their loved ones with their money (9%).
The arrangement couples have is fair for the vast majority of couples, but there were still just under one in 10 (8%) of the 1,000 people in a long-term relationship surveyed who think otherwise.
Of those couples who feel a disparity is present, two-fifths of TSB’s respondents haven’t tried to resolve the issue either. A separate study from Atom Bank found that one-fifth of people do not speak to their partners about their finances at all and prefer discussions about politics or religion over money matters.
No simple approach to managing a joint account
When it comes to each other’s salary, there is much more openness, as 90% said they knew how much their partner earns, while a similar number (88%) said their other half is aware of their earnings.
Carys Barnes, head of personal current accounts at TSB, said: “There’s no one-size-fits-all approach when it comes to managing household finances, and it’s clear that most people value maintaining some financial independence.
“However you choose to manage this, it’s really important to talk about your finances and attitude to money to avoid problems.”
To mark Valentine’s Day, the lender has provided tips on how to handle household finances in harmony.
Tips on how to use a joint account successfully
- Talk to each other and stay on top of your finances
Good communication is crucial when it comes to household finances. It pays to keep a regular check on finances by creating a household budget. It’s a good opportunity to have a note of joint outgoings like bills, rent/mortgage payments, car and home insurance, childcare and/or holidays etc, and future savings goals. That way, you can create a plan for building a future together and identify potential issues/overspending early.
- Agree on a financial split
You’ll likely be earning different salaries, so it’s important to understand between you how the finances will be split. Some prefer to go 50:50 if they earn similar sums. These conversations can be hard to navigate, but understanding how the finances will be split is crucial to forward planning.
- Choosing a bank account
There’s no right or wrong when it comes to managing your finances – whether you have a joint account or not, there are pros and cons to both.
If you have separate accounts, it’s important to agree on who will cover which expense. This will ensure all outgoings are covered and you both avoid any charges.
If you choose a joint account, it’s worth noting that as soon as you open a joint bank account, you are financially linked with the other person and you are both responsible for the account. If your partner has a bad credit rating, your credit rating may be impacted too.
