Managing money as a working couple

One of the most difficult issues for couples to discuss is money, but the most important thing you have to remember is “Never lie”. Just be honest with your partner. Honesty is necessary for any money talk, just as it is in any relationship. Lying to a partner about finances reduces confidence and may result in a divorce.

Combine all of your income and expenses

Both of your earnings are placed into a joint checking account, and both of you are using the account according to a budget that you have agreed upon. All of the money flows into and comes out of the same pot.

To make this work, you and your spouse must sit down, total your combined income, and then carve out and agree on a budget that covers all shared costs, from housing to food and bills. You have total financial transparency in this case. This implies that you must also agree on discretionary expenditures. Because your money is so connected, you need to accept and agree on your spending. You’re on the same team, pursuing the same objectives.

It doesn’t matter whether one individual earns twice as much as their partner in this situation because the budget is balanced by your combined income. If one person’s income increases while the other’s decreases, the two will balance each other out. Because all cash and costs are deposited and taken from the same account, there is no distinction between what is mine and what is yours.

Separate your finances

Many couples may find that keeping separate accounts is a comfortable starting point, especially if they are used to handling their own finances and don’t have many common costs.

This method is simple in several ways: all you have to worry about is yourself, your bank accounts, retirement accounts, and investments. However, it is difficult in many ways: you may still be concerned about your partner’s money, and it is practically impossible to have no shared spending, which may be challenging to manage.

Even after years of marriage, many couples keep their finances separate. This is something you and your spouse should discuss since keeping money separate may help you manage it better. Couples in such situations must agree on who will be responsible for certain payments and make plans to pay them on their own.

Shared bills

Every expenditure is divided in half. You each contribute the same amount to all bills, which will be used for any agreed-upon shared expenditures like housing, utilities, vacations, date evenings, and so on.

You have complete control over your finances, yet you can easily split spending with your spouse.

Splitting expenses evenly may appear fair, but if one person earns much more or less than the other, one person may be put under more hardship than the other. Splitting costs equally will have an impact on large future expenditures, since you will need to ensure that each individual can pay the cost.

In this case, you should set up a joint account to which you each contribute half of your costs, such as housing, groceries, and utilities. Decide what you’ll do if a new expenditure arises — will you have a conversation about whether or not it’s a shared expense? What are your plans if you don’t agree?

Final Thoughts

There is no one-size-fits-all approach to managing your funds as a young couple, but with communication, trust, and a little forethought, you and your spouse can enjoy a money-free marriage. If you’re having trouble coming up with a combined plan that works for both of you, seek the help of a financial counsellor.