How to manage money and common expenses as a couple?
Talking about money may not be too romantic. But, if you don’t, your relationship may suffer. Many couples avoid talking about their finances. until it’s too late. Sometimes, an awkward conversation in time can be the key to a relationship not being shipwrecked.
it suits Communicate with partner and be transparent. “Before even starting to live together, it’s important to talk about each other’s financial situation. And it’s not just about income, but it’s also important to deal with debts“, explain the experts of the financial product comparator HelpMyCash.com, who have analyzed The best way to organize finances as a couple.
“Hiding them is not a good idea, because they can limit the financial capacity of a member of the relationship and end up interfering in common finances”, they add. If one of the two is in debtyou will have to spend part of your income to pay your debts and you will have less money available to pay rent, travel, etc.
It is also important to ask what kind of people we are. whatAnts or spendthrifts? And to know what are the short and long-term projects of each one. Talking about it will help us to know if we are financially compatible with our partner.
Deciding how expenses are shared
Organizing finances together is even more important when the couple begins to live together. You have to make many decisions. You have intention to share everything Or do you prefer to maintain your financial independence?
Open a free joint account makes it much easier managing finances as a couple. Paying the rent, the electricity and gas bill, the Internet line, the purchase from the supermarket… can become a real headache if you do not They centralize all common expenses in the same account. Our Bizum can end up fuming if we have to be continuously calculating how much each one has paid and how much is owed to the other.
HelpMyCash experts recommend centralize common expenses in a joint account. But first it is important to decide what use that account will have. Are you going to share everything or do you prefer to each keep your personal account, in which you receive your salary, and use the joint account only to manage common finances? There are couples who decide to share everything, there are others who prefer to have their accounts totally separate and many others who opt for a mixed formula: maintain your financial independence and open a joint account for common expenses (rent, household bills, children’s expenses, supermarket purchases, savings as a couple…).
If we decide to open a joint account only for common expenses, before taking the step it is very important to make it clear how the expenses are going to be distributed. The most common is to distribute them equally. But if there is a large difference in income, the person who earns less may lose out. A solution in these cases is distribute expenses proportionally. For example, if the sum of the rent, the receipts, the purchase from the supermarket and the rest of the common expenses add up to a thousand euros per month, one member of the couple can contribute 600 euros to the common account and the one who earns less, 400.
“The third option is that each member of the couple contributes the same percentage of their incomeso that the economic effort is identical”, they explain in HelpMyCash. For example, it can be decided that the two members contribute 25% of their income, so that if one collects 1,000 euros, they would contribute 250 euros and if the other collects the double, it would contribute 500.
The best accounts for couples
AND what type of account has to be opened? If the objective is to pay common expenses, a current in which receipts can be domiciled, purchases paid and transfers made. Ideally, have no maintenance fees or linkage requirements, especially if each member of the couple is going to maintain their payroll in their own account. And what options are there that meet these premises? enough.
The BBVA Online Account It does not have maintenance or administration costs, it allows free transfers and it can be opened with two holders, although both have to be new customers. Each will receive their own free debit card. It is not necessary to direct deposit a salary or maintain a minimum balance to avoid paying commissions.
A very similar account is Santander Online Account for new clients, which also has no commissions or conditions and delivers a debit card to each member of the couple. Supports up to two holders.
Another option is the Abanca Clear Account, also for new clients. This online account can be opened alone or as a couple and It does not have maintenance expenses or link conditions (it is not necessary to domicile a salary). Each holder will have their debit card at no cost. This account has an extra advantage: although it is not mandatory to direct deposit a salary to open it, the bank gives away 300 euros net to holders who domicile a salary of at least 1,200 euros and keep it for two years. And if both members of the couple do it, the gift is double, of 600 euros.
The advantage of these accounts is that, since they do not have ties, there is no need to worry about domiciling a salary nor for maintaining a minimum balance. They can be used to domicile household receipts, deposit money when needed and pay common expenses such as the weekly purchase, a trip, a dinner, etc.
In any case, “it is very important to fulfill the commitments reached and Prioritize the joint account over personal expenses“, they point out in HelpMyCash. It is not much use to talk about money and organize finances as a couple if later, at the first change, one of the two cannot provide the money that it is his turn because he has spent it on something else.