Why Broke Millennial's Erin Lowry Says Newlyweds Should be 'Skeptical' About Joint Banking

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KEY POINTS

  • Before getting married, it's smart to consider how you will handle financial matters as a couple.
  • You'll need to decide if it makes sense to share a joint banking account or if you'd prefer to manage your finances separately through solo bank accounts.
  • Financial guru Erin Lowry thinks a hybrid model, where couples share some of their finances, can work for many people.

Should newlyweds rush to open a joint banking account? Not always.

Getting married is a big deal. When you commit to a partnership with someone, there are many important decisions to make. You may be thinking of opening a joint banking account with your partner. While that is the move some married couples choose to make, one personal finance guru shares why that choice may not work best for every couple.

Before entering into a legal partnership with someone, it's worthwhile to think ahead about important life matters. Examples include deciding whether you want to have children and how you want to achieve your shared life goals. It's also smart to consider how you will handle finances as a couple.

While some married couples choose to combine their finances and share a joint bank account, not all couples do. Are you part of a newlywed couple trying to sort out the most important financial matters? Don't forget to consider how you will handle your banking affairs.

Joint bank accounts aren't for every couple

Erin Lowry, the woman behind Broke Millennial, shares practical financial advice with her millennial audience so they can get their finances in order and thrive. Lowry has some thoughts about joint bank accounts -- and her advice may not be what you're used to hearing from other financial gurus.

Many newlyweds assume they should join forces and share a joint bank account -- because it's seen as the traditional way to manage finances as partners. While Lowry thinks joint banking works well for some married couples, it's not always best for everyone.

Instead, couples could figure out a solution that works for both parties. That may look like keeping bank accounts separate, having a joint bank account, or doing a little of both. No solution is wrong as long as it works for both people.

Consider a hybrid banking solution

Still not sure whether you should open a joint checking account or keep your money separate? Lowry notes that a hybrid model can be an excellent solution for couples unsure what to do. With this method, couples share a joint bank account that they use to manage household bills and expenses that they share. Each partner will also maintain a separate bank account for personal spending needs.

This method allows each individual to control how they spend their money while also honoring their shared financial obligations. It's a win-win for all involved. For some couples, it may be a good idea to set a personal spending limit to better stay on track with shared financial goals.

Do what works best for your family

The most important thing to remember is what works for other couples may not work for you and your partner. You'll need to decide together what method works best for you, and what you decide today may change as you go through the many seasons of your life and relationship.

Before walking down the aisle, be sure to discuss how you plan to handle banking matters. It will also be helpful to outline your shared and personal financial goals and how you plan to get there together.

Finally, ensure you're on the same page about who will manage the day-to-day financial needs, like scheduling bill payments. It's perfectly okay if you decide to share bill-paying responsibilities, so you're both in the know about your finances.

Check out our personal finance resources for additional tips related to essential money matters.

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