Consolidating finances after marriage
All checking and savings accounts are combined and each person plays an active role deciding how money is spent and saved.For simplicity, one person may manage paying all the day-to-day expenses, but both should be fully engaged in the responsibility of planning for a joint financial future.Figuring out the best way to manage your money as a couple takes a lot of discussion, and some trial and error.And as your relationship grows and changes, the way you handle money will grow and change too.Based on expenses and savings goals, pick an allowance amount and review after a few months to see if it needs to be adjusted.Why it works: Having one separate account helps maintain a sense of independence while still working toward shared financial goals.For example, if one person makes k per year and one person makes k per year and the shared expenses for the month are ,000, the person earning more would contribute ,000 (,000 x 60%) and the other person would contribute ,000 (,000 x 40%). Once you know how much you want to contribute to the joint account, set up an automatic deposit into the joint checking account each month.It also helps you learn how to budget as a couple because you’re forced to sit down and review what you expect to spend each month.
If one person earns significantly more or prefers to live a slightly more lavish lifestyle, you may want to consider contributing different percentages, rather than splitting the cost of the shared expenses 50/50.
What it looks like: The couple combines all accounts (checking and savings) but each person keeps one account separate.
Each month a set amount of money is transferred from their joint checking account into the separate personal checking accounts.
Bi-weekly or monthly, a set amount will be transferred from the joint checking account into each separate personal checking account.
The hardest part with this method is deciding how much each person should transfer into his or her separate account for the monthly allowance.