Pregnancy and Finance Exercise 2: Setting up a Joint Account

Here are some steps you can take if you are thinking of a joint account:

1. Pay in a set, agreed amount every month. This should cover the monthly costs on your home, utilities and other expenses you’ve agreed to share. You could add extra on to create a financial cushion in case of emergencies (e.g. the central heating breaking down) or to cover the occasional treat (e.g. a night in a hotel twice a year).
    
2. Make the contribution fair.  If one of you is earning more than the other a 50/50 split might be unfair. The higher earner should consider contributing the greater proportion.
    
3. Agree what the joint account covers. Monthly utility bills will be clear-cut. Variable expenditure will be less so. If you both use the account for food, booze, treats, travel etc. agree what a reasonable monthly spend should be.
    
4. Review it together regularly. Sit down at least once a month and go through the paperwork. Check that what you’re paying in is keeping pace with your outgoings. Make sure you’re both clued up on your expenses and financial commitments.
    
5. If one partner isn’t happy with the arrangement discuss it in a calm and neutral way. Whatever happens, don’t get into competitive or revenge spending. Remember you’re both liable if the account goes overdrawn.

“We have a joint account into which my husband pays £1,200 a month and I pay £200. We also have a separate account each.  I like feeling that I can have some independence, and my husband uses his own account for business costs. Our mortgage, bills, food and general costs come out of the joint account.” - Judith, Glasgow.