Should You Combine Finances?

You've just moved in with your boo, but the first rent bill comes and you wonder... "How should we split this?"

Two Cents on Twitter: @twocentspbs

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Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions.

Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson
Directors: Katie Graham & Andrew Matthews
Written by: Andrew Matthews
Executive Producer: Amanda Fox
Produced by: Katie Graham
Edited & Animated by: Sara Roma
Images by: Shutterstock
Music by: APM

[alharethhassan]

As someone from Sudan ..I don't know what to do with most of the information I get from your videos, but I am enjoying it ... Keep it up

[asdfqwertA]

Name a better power couple. I'll wait

[millionairei]

Looking at financial channels like this one has help me pay off all my debt besides my house. More millennials are becoming financially literate by watching YouTube.

[Sijray]

My wife and I are far from traditional, but we've discussed money early in our relationship. She brought in student loans, where I had none. I knew that going in and agreed to tackle that together. We paid off her student loans together and are debt free aside from our mortgage.

The way we share finances is we keep a certain amount of each paycheck to a personal account ($150/paycheck since we're paid on the same schedule) and the rest goes into a joint account to pay for the budget we've agreed on. I primarily do the finances and report back to my wife on the monthly reports (essentially). I don't question what she buys with her personal money and she doesn't question my personal expenses. We discuss larger joint purchases and how it will affect both of us (cars, trips, etc.). We also have a dedicated travel fund.

[sminthian]

Moral of the story:
Write it down and have an organized plan, don't just argue about it every month.

[SteveRam]

1 of 4 failed marriages are caused by money problems. It’s a real issue. Thanks for tackling such a sensitive topic in a world with a variety of non-traditional set ups. Great video!

[jcarteaga]

Conveniently Im getting married this month, so this came at the perfect time!

[nelsond]

I always think of 4 accounts: two joint accounts- one for savings and the other for Bills and expenses. Two personal accounts-one for me and the other for her.

[huskiefan]

Married couples should combine finances, but only after making a joint budget that both agree on. Non married couples should never combine finances because the person has no legal right to the other person's stuff. Also, NEVER buy a home or car with someone else on the loan or title if you're not married to them.

[Cameroner]

We didn't have any problems sharing finances until we bought a house a couple of months ago. Now we're definitely going to try the envelope system you mentioned. Grill here we come

[gracemistress]

I'm glad you mentioned the possibility of abusive relationships. Thanks for keeping your advice and pros/cons discussion realistic

[ryanproven]

Am I the only one that didn't know they were married!? I've been watching these videos for over a year and always thought they were just hosting together.

[brkn]

I feel like the causation between couples combining money and staying together might go the other way around too. Like couples who had healthier relationships are more likely to combine their resources?

[NovelNovelist]

Actually my grandparents, who were born in the 1920s, kept separate bank accounts and served as the example upon which I modeled my own separate finance system with my husband.

[maccabeeodin]

I started collage later in life while my partner was almost done with her degree. So she was the bread winner, while I had a few part time jobs. After I finished mine the roles switched so that she was at home with the children. Now that they're getting to school age she's looking to get a new career.

[hurbig]

My mother payed for my father’s engineering degree, so that was a pretty good investment of her :P

[danielm.]

My partner and I keep separate finances, and one joint account - we pay equally into that a little more than needed per month, and common expenses go out from that. Surplus can be used for holidays/saving/joint purchases. This means that we don't patrol each other's spending, & have spending independence.

[Erika]

Love this concept of "fun money"! Trust is the foundation of any successful relationship! As always, great video!

[IDontWantThisStupidHandle]

The only time I have ever opened a joint-checking account, it was with an emotionally abusive ex-boyfriend who threatened to kill himself if I didn't stay with him (amongst other manipulative traits). I was the only one working for months, so when he finally got job, we opened the account and I put up the inital deposit ($2, 000 to cover the next few months of bills while waiting for his paycheck). He cleared me out and left the next day. Since we weren't married, and the account was in his name as well, there was nothing I could do. I HIGHLY advise against openening a joint checking account with anyone before you two are married.

Now, I'm married to a wonderful man, but we just split all the bills 50-50 and e-transfer each other our halves of whatever needs to be paid. We've opened a joint-savings to eventually buy a house; but aside from that, we keep the rest of our income in separate accounts (unless one of us needs help one month). We go over our bills together every month to make sure it's fair, and we file our taxes together; but aside from that -- he's free to spend his money how he chooses, and so am I. I think the mixed approach works best, like you said!

[gsogymrat]

My husband and I have been together 28 years and we have separate finances and do bill parsing. We very rarely have disagreements about money. There are some things I'm interested in and pay for, such as electronics and cable, and things he's interested in and pays for, such as landscaping and lawn care. Major purchases such as property or vehicles we split.