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Try a 3 account solution when joint accounts alone are not enough

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Working married couples with different spending philosophies will often have conflicts with financial matters. Two incomes combine to cover one set of household costs. Different money habits can create friction when they are both applied to the same account. Joint checking accounts work great to focus on household bills, but they may not successfully promote individual needs.

Joint Accounts - Both parties place a predetermined amount of their paycheck into the checking account each payday. This account gets used to pay the bills. This money serves as the sole budget management system. If there isn’t enough money before the next pay period comes, there is work to be done on the budget. Budgeted expenses should never be paid for with credit cards or short-term loans. If this account is failing then it is time for the couple to readdress the budget and cut back expenses or increase deposits on payday.

It would be a smart choice to have a joint savings account as well. Both parties place an equal percentage of their paycheck into this account each month. It can be used for emergency purposes, to save for a vacation together or invest into retirement accounts.

Separate Accounts - These accounts gives each person their individual freedom. Joint accounts must be in good condition and have a well-functioning budget in place before separate goals can be established. A separate checking account will give each person to spend their remaining earnings as they see fit.

- Always wanted a higher priced car that your spouse wouldn’t agree upon? This account could help you fund the difference in the budget.

- Enjoy shopping days with friends? Use your own account to fund your day.

- Hoping to buy the motorcycle of your dreams? Work at saving money from this account.

- Like to eat out at lunch instead of leftovers? You can as long as there is money in your account.

There are many different ways that people spend their money. When the bills and household needs are all taken care of it makes sense to enjoy your earnings the way you like. It is good to have a team effort approach towards mutual endeavors. Support the household before individual wants.

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