You want more transparency when it comes to how you manage money as a couple. You need to help your aging parents manage their money.
You want a joint account with your child so you can oversee their finances. Joint Checking Accounts for Couples Couples uniting their assets has been a common practice for generations. The reasons for two people in the same household to share a checking account are many. One checking account for buying groceries and paying bills makes it easy to keep track of where all of your money is going. Financial experts say this set-up is also healthy for most relationships.
For these folks, it can make sense to have two checking accounts: At the same time, each partner can have another account to handle assets he or she would rather not share with a partner.
This goes back to maintaining trust in a relationship. Finances have been known to put a strain on even the strongest relationships. While joint checking accounts can alleviate some of the angst, they can also contribute to it. Having dual accounts gives each person in the relationship a sense of control over their finances, she notes. Another potential problem with joint checking accounts can arise when one partner spends differently than the other. One, for example, may prefer to squirrel away money, splurging infrequently and only for very special occasions.
The other may not be a total spendthrift, but still might spend a little frivolously on the weekends as a way of cutting loose. Disparate spending habits can lead to tension, according to Kelsa Dickey, a financial coach and owner of Fiscal Fitness Phoenix. In such instances, having an adult child share financial responsibilities may be advisable.
Take note that many financial advisers warn against such a set-up, or at the minimum stress extreme caution. For these and other reasons, some experts believe establishing power of attorney for a parent and requesting access to financial assets such as a checking account is the safer way to go.
Joint Checking Accounts with Minor Children Teenagers can typically open checking accounts , but parents have an obligation to keep track of what is going in and out of those accounts.
This is a great learning experience — for both parents and children. The young person responsible for the checking account must learn to deposit, write checks, and balance the account; the parent must learn to oversee the process while still giving independence to the child. Some parents may decide to create a joint checking account with children as a way of monitoring the account.
The firm points out, however, that many negatives can occur when a minor and an adult parent share a checking account. Irresponsibility on the part of the child can lead to a drained bank account and financial issues for the adult. Personal liabilities, such as credit card issues, can be assessed to both people on a joint checking account.
In any situation, weigh the pros and cons of having a joint checking account.