Twice a week, our CEO and resident money guru Jean Chatzky tackles your burning questions in the HerMoney newsletter. We’ve pulled some of the best to feature on our website — and this one made the cut! Got a question for Jean? Send it her way right here.
Q: Today’s question comes from Megan. She writes: I am newly married and also have an almost one-year-old daughter with my husband. I would love to hear the best way to combine income (or not).
A: Thanks for your question, Megan. Congratulations on your marriage AND baby!
Here’s the thing–there’s no one right way to manage finances as a couple. It really boils down to what works best for you and your spouse.
What I might suggest you try, though, is the “yours, mine, and ours” approach. In dual-income couples, which it sounds like you are, you don’t have to choose joint or separate accounts. Many find the easiest setup is to have a joint account that both of you fund to pay shared expenses (everything from the electricity bill to diapers). A high-yield savings account HYSA is a great option.
Then each partner can have their own account to pay for individual purchases (maybe it’s a new bag you want, a night out with girlfriends, whatever!). Both partners share the financial burden of day-to-day expenses while maintaining financial independence. Note, though, that the odds are you and your partner earn different salaries. Your contributions to the joint account–and subsequently the paying of your expenses–might not be equal, so take time to figure out what’s fair.
“Some of the most happily married couples I’ve seen are ones that kept their money separate for their entire marriage,” Emily Sanders, managing director of United Capital Financial Advisers in Atlanta, recently told HerMoney. “It takes away some of the power and control issues that tend to be associated with how we use our money.” For more on how to split expenses, save for big goals (like a family vacation or your child’s education), and invest alongside your partner, click here.
MORE ON HERMONEY:
- How To Ask For Longer Parental Leave…And Get It
- Should You Pay Your Parents When They Babysit?
- What It’s Really Like To Be A Full-Time Working Mom
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