When is the right time to combine finances

Management of money can lead to problems in relationships. No matter how new or young a relationship is, it’s imperative for you and your partner to discuss finances. Gone are the days when talking about money was considered taboo. To get a better, more sound perspective on your financial decisions, you need to discuss your financial situation with each other.

Here's how to find out if and when you’re ready to combine finances with your partner, and when it’s okay not to.

Combining your finances completely

Combining finances is ideal for married couples or partners, especially those with children, who share the same financial ideals and are working towards the same goals. Having a joint bank account makes it easier for couples to track and manage their expenses.

Combining finances before marriage is not ideal, especially if you are not 100% aligned on your financial management style. Combining your finances this early, whether you are engaged or just dating, could create friction in your relationship. But if prior agreements are made and plans are aligned, then combining your finances this early will not be an issue.

Keep in mind though that these are not hard and fast rules. Combining finances before or during marriage entails communication and transparency with your partner. Even married couples get into fights when one is not completely honest about their spending habits.

Just be mindful of the way you spend your money and there’s no harm in discussing or asking each other’s permission when one wants to buy something unplanned.

Keeping your finances separate

Keeping finances separate is good if you are not yet married or living together. This especially works if you still support your families and don’t have any combined expenses yet.

Separate finances may not be ideal for you and your partner if you live together because moving into a single household would mean joint expenses. Having separate finances would make it harder for both of you to manage the home and the budget.

50/50 approach

This may be the best option in sharing the expenses of a household. You and your partner can contribute 50% of the expense and still keep the rest of your money. In sharing expenses, you don’t have to go all in, as is the case with the 50/50 or hybrid approach. This allows you to have money you can use for your expenses and shared goals while still being financially independent.

You still need to be open and transparent with your partner on how much each one puts into the account. It does not necessarily have to be the same amount. It can even be an equitable approach where you each put in 40% of your income.

How do joint bank accounts work

Opening a joint bank account is the best approach if you are ready to share finances with your partner. It allows you both to have access to the bank account, meaning you can withdraw, deposit, and track it separately. To open a joint bank account, you’ll both need to submit a photo-bearing valid ID each, and initial deposit. Take note that both of you must be present at the time of opening. Depending on the type of joint account, transactions may require one or both of your signatures.

Can you open a joint bank account without being married?

You don’t have to be married to open a joint bank account. Regardless of your relationship (married, cohabitating, siblings, parent-child), you’ll need to follow the same process. If you’re ready to embark on this new financial journey with your partner, open a Joint Savings Account with Metrobank today.