Women breadwinners are increasing and naturally joint ownership on money decisions are on the rise!
Hence, you'd need to find a way to manage finances with your spouse that is different from your mum or your grand-aunt's generation.
This chart below shows US female breadwinners which is likely resembling the SG numbers. It shows the growing contribution from women from 1967 to 2017!
Three Key Findings On Couples - Battle between Joint or Separate Accounts!
I did a recent a survey in Seedly Facebook group on how couples (in singapore) manage finances.
109 couples voted. Thank you to each and everyone!
Finding #1: Fixed percentage contribution to joint account was the TOP choice.
Maybe it felt an equitable (not equal) method because the lower drawing half could feel tight if it were the same amount.
Finding #2: At least 61% actively use a join account.
I suspect quite a few use the joint into DBS multiplier.
Finding #3: About 25% use separate accounts. Lower than the 40% surveyed by Motley Fool US.
It may be a sampling issue or a demographic issue.
Actual survey results below
What my wife and I do
Just in case you are curious (and let's get it out of the way), this is what we largely do.
We're quite simple in lifestyle. Quite abit of a financial minimalist.
So other than taking turns on the house mortgage, the kid's kindergarten cost and the car cost, everything else is relatively small and is voluntarily picked up.
Perhaps, our culture is if we win, the pot is equal anyway. No reason to account for the numbers.
If we lose, the hole is the problem of both. This concept has been put through the fire before.
When my ice-cream shop failed 10years ago. I burnt through all my capital and some of hers.
Together, we became broke then...
I've abit shared in this previous post before
Every couple is different and no "one size fits all" financial method
The reason you choose a joint account with you other half or a separate account can be due to background or experiences. From my experience in financial advisory work, these could be
1) Financial savviness between the couple: Present in both or dominant in one?
2) Family's net wealth and in-laws net wealth: Similar or unequal?
3) Income level between the couple: Equal or lopsided?
If you were to marry into the British royal family today, your way of managing finances will be very different from today. Hence, let's not judge why someone else's method is different from yours.
I've three constructive reasons why joint account help you win as a couple!
Hopefully if you share with your other half, you all can make the changes and improve financially!
Reason #1: Joint accounts can prevent under-investments
Fellow group member Lyndon Wong shared in his post he has 3 primary joint accounts:
- Joint-kids investment account
- Joint-savings/expenditure account
- Joint-investment account
In his post, he mentioned that he more investment savvy and greater interest in growing our wealth.
The wealth is combined to invest as a bigger pot. If you are keen to read, click this link here.
Me and my spouse also practice this somewhat. One person is looking at investing for the team.
Our spare cash may be invested through our joint investment account or individual investment account but the concept is the same.
Another important point is preventing under-investment if one half is reluctant to do much. A joint account or a joint-investment account specifically can address this issue.
Think long term and grow a sizeable investment pot together.
Reason #2: Joint accounts can be a shared EMERGENCY CASH
Emergency cash is a concept whereby you keep at least 6months of your income in cash. Your spouse does the same for himself/herself.
Now this beats a very important point: Is there use to keep so much cash between the two?
What are the odds of falling sick together? What are the odds of retrenchment together?
A joint account can be a "pooled emergency cash" for BOTH if you believe in this concept.
That frees up MORE of your own personal money to get invested!
To much emergency cash may not be necessary...
I've further elaboration in this previous post on
Why emergency cash is a myth which is contrary to general advice!
Reason #3: Joint accounts are very powerful for both in the relationship to be accountable
It is quite simply the easiest way to create forced savings.
Whether it is by fixed percentage or a fixed $1,000/mth, if you set the culture with your partner, it will be done.
This is especially useful if your partner is someone who is struggling to save. Then the joint account becomes something that is supervised and prioritised before spending takes place.
Watch this video below on three ways to manage your money better including the "LATTE FACTOR" and "AUTOMATING YOUR SAVINGS"
Conclusions: Retirement planning is a couple game NOT a solo game
Your other half can't be going holiday in retirement without you simply because you didn't save well. The converse is also true.
Hence, save up together and get each other accountable.
It also helps in providing more transparency to family finances and promotes healthy discussion of money within the family.
Dr. Emily Garbinksy, a marketing professor at the University of Notre Dame who studies financial decision-making within romantic couples, found that couples experience the same degree of conflict regarding finance whether they pool their money or not.
So there’s NO ONE WAY to guarantee a peaceful relationship, but being open and honest with your partner can help.
This is a belief that #millionairekids #theastuteparent advocates! =)
Last updated on February 27th, 2020 at 09:08 am