Who handles your family finances? Is it just one person or is it a joint effort? When it comes to the personal financial plan for a family, there are many ways to approach managing the budget. How you keep track of your family finances often depends on whether your finances are joint or separate. Some families have successful marriages with separate finances, while others share everything, including the responsibility of paying the bills. Some writers may argue for one system over another, but the important thing is to have a system in place.
Separate Family Finances
As I mentioned, some couples have a great marriage with separate finances. Growing up, my parents had joint everything. You can imagine my surprise when I heard that there were couples who kept separate savings accounts. While I am not the expert on this system (for obvious reasons), there are many ways that this works for families. Typically in these situations, both partners are employed. As far as I can imagine, having one stay at home parent would not be a recipe for financial success. With both spouses working, each keeps separate bank accounts and they split the bills. Some may split the finances equally, while others agree to pay for certain things.
While the logistics are different for each family that chooses this route, this can offer a lot of security to each partner. No matter what happens, each partner is thinking about their finances. This means that they are more likely to plan and save for retirement. If something horrible happened, each would be able to survive without too much difficulty.