What's the ad/disadvantage of join account?

Question

I know that many couple may have join account but we don't .
My husand has fear on it ever since his parents had lots of argument with it. I have no idea about the advantage of join account....What do you use join account for? What's the ad/disadvantage? Or you think separate account is more freedom?
I don't want to have argument about this with him again...

Answer 1

You use joint accounts for utilities and other bills which affect the whole family, such as home or car insurance, and mortage. Some couple also use it for groceries and school fees. Basically, personal things should be purchased using your own account.

It is easier to keep track of the household finances. You could immediately work out how much is your periodic expense. If you use separate accounts you would have to gather information from all accounts to determine your periodic expense. There is also no need to work out who pays what.

It may be a problem when you don't contribute equally to the joint account. One partner may feel that he/she is paying more for the expenses than the other partner. You could use percentages to solve this. This way, the partner which earns more has to contribute more and vice versa for the partner which earns less.

This, of course, is not a rule of thumb, because each person has a different spending habit, so the percentages may change from month to month, or that a partner with a less expensive personal spending habit may volunteer to contribute more.

A related problem is determining the percentage of a partner's wages that should be contributed. You have to know your expenses and budget properly. This means finding some time to sit down and do this with your partner. The plus side is you and your partner have the opportunity to work like a team and this strengthens your bond.

Another problem is the definition of personal items. A car that could be useful for the whole familiy but is mainly used for your needs. Personal or household item? You may have to keep a list on what should be paid using the joint account.

I think the underlying problems with the joint account are the fear that a partner may abuse it, or that one partner may feel they're entitled to more of the household goods because they contribute more. The latter problem still occurs when using separate accounts.

I prefer the joint account over the separate accounts. If you have a good, connected relationship those problems should be minimal.