Couples Who Share Bank Accounts Have One Big Advantage Others Don’t

Relationships can end for many reasons, but it’s no surprise that financial issues are a major cause of breakups.  Research into the effect of shared finances on relationships found that couples who share bank accounts have better communication about finances. This can improve overall satisfaction with the relationship, although if the couple disagrees about finances, it could cause conflict. Let’s delve into what the research shows and how you can improve your financial health as a couple.

Why Joint Accounts Help Relationships

In the study, “Talking About Shared Money,” researchers looked at the results of three previous papers about relationships and finances. It found that sharing bank accounts created financial transparency and encouraged open and honest conversations about finances. For example, two of the studies found that couples with joint bank accounts were more willing to discuss finances more frequently. They also communicated better about the day-to-day management of their money.

Newlyweds who participated in the study and shared bank accounts reported higher relationship satisfaction a few years later than couples who kept separate finances. This suggests that pooling all finances can help couples “establish a sense of unity and couple identity,” strengthening the relationship.

However, there are potential downsides to sharing bank accounts as well, according to Johanna Peetz, one of the study’s authors and a professor of psychology at Carleton University in Ottawa, Canada. “Talking about money might create conflict when two partners disagree,” she said. “But making communication a habit might ensure that these conflicts are likely to be about small, solvable issues rather than turn into long-standing, entrenched disagreements.”

How to Improve Your Financial Health With Your Partner

Peetz provided some useful tips for strengthening your financial relationship with your partner. Here are some strategies to try.

• Discuss and set financial goals together: Communication can help you understand your partner’s perspective, and vice versa. You may find that you’ll need to accept that your partner has different financial goals than you do and respect them, even if you don’t agree with the goals.
• Have financial conversations about major milestones: Peetz said if you and your partner talk about “must-haves” and “dream-to-haves,” it may be easier to find places where your viewpoints overlap. “It might also be helpful to talk about past experiences or how each partner’s family has arranged and handled such milestones,” she said.
• Make time to have regular financial checkups: “Any behavior practiced over time becomes a habit,” Peetz said. “Talking about perspectives on money and reasons for desired purchases also helps two partners to understand each other’s views and, over time, might align financial values.”

The Bottom Line

While keeping your finances separate is a good idea in the early stages of a relationship, pooling bank accounts can strengthen committed relationships. By combining financial resources, you see yourselves as a team, and if you’re communicating well about money, you both feel more satisfied with the decisions you make together. As the research shows, prioritizing communication can prevent small disagreements from becoming large issues that strain the relationship.