Start \u2013 and keep \u2013 talking<\/p>\n
There\u2019s no one-size-fits-all answer for whether you should manage your finances jointly, separately or somewhere in the middle.<\/p>\n
The most important thing is to have conversations about money \u2013 things such as spending, budgeting, debt and saving \u2013 early on in your relationship to prevent misunderstandings and arguments later.<\/p>\n
According to the counselling service Relate<\/a>, worries around finance are the biggest strain on couples across the UK, yet, it says, surveys have shown that \u201ca large proportion of us feel unable to actually talk about money with our partners\u201d.<\/p>\n If you are struggling to get a conversation going, you could draw up a written plan. You could suggest you each separately write down how you think you should manage your finances as a couple, and then talk about it. You may have to compromise on some things.<\/p>\n Any arrangements you make should be reviewed every now and again, particularly if one person\u2019s circumstances change \u2013 for example, if they get a pay rise.<\/p>\n Think about bills<\/p>\n Moving in together is a big deal and will mean sorting out who\u2019s going to pay for what.<\/p>\n The good news is that some bills should come down. If you were each paying for Netflix, Amazon Prime or other subscriptions, in many cases you will be able to halve those costs. Other costs can be cut, too \u2013 for example, some gym chains, such as David Lloyd, offer a discount if you sign up as a couple.<\/p>\n When it comes to gas, electricity and other utility bills, you could split these 50:50 or proportionally based on each person\u2019s income.<\/p>\n Some utility companies will let couples put both people\u2019s names on the bills. This can mean that both people, as opposed to just one, are liable for any unpaid bills and debts.<\/p>\n Consider teaming up \u2026<\/p>\n One big decision is whether to have a joint current account. Relate says setting one up \u201cis an act of serious trust\u201d.<\/p>\n \u201cHaving a joint account means your partner has the right to spend whatever\u2019s in it, no questions asked,\u201d says Andy Webb, of Be Clever With Your Cash<\/a>. \u201cIf your partner goes on a spree and the account ends up overdrawn, you\u2019ll both be responsible for clearing the debt.\u201d<\/p>\n You should think very carefully if your partner has debts or a bad credit score, as joint account holders\u2019 credit files are financially linked. When you apply for credit, the lender could choose to view the credit file of the person you are linked to, as well as yours, and this could affect your ability to borrow.<\/p>\n If you set up a joint account you need to decide what it is for. You could opt to combine all your income in one place and have all spending \u2013 from big bills to small things like takeaway coffees \u2013 come out of that account.<\/p>\n \u201cYou\u2019ll both have control over the money, and you\u2019ll both be able to see what the other person is spending,\u201d says the government-backed MoneyHelper<\/a> website.<\/p>\n Meanwhile, you can\u2019t get a joint credit card, but you can often request a supplementary card for a partner. The \u201cprimary\u201d cardholder will be responsible for any spending by the supplementary cardholder, so bear this in mind before you apply.<\/p>\n Have conversations about money early in your relationship to discuss things such as household bills, budgeting and saving. Photograph: OJO Images Ltd\/Alamy\u2026 or a halfway house<\/p>\n Another option is to open a joint current account for things such as household bills and emergencies, but for each partner to have their own bank account for personal spending.<\/p>\n Think about how much each partner will pay into the joint account each month. It could be an equal contribution or related to each person\u2019s income.<\/p>\n Webb says having only a joint current account, without individual accounts, can be risky. \u201cYou might not feel the need to have separate funds \u2013 but relationships can go wrong, from breakups to financial abuse, so it makes sense to have access to your own money should you need it,\u201d he says.<\/p>\n \u2018A large proportion of us feel unable to actually talk about money with our partners,\u2019 says Relate. Photograph: Hinterhaus Productions\/Getty ImagesPool savings<\/p>\n The digital bank Revolut recently launched a range of joint savings accounts so couples can \u201csave side by side\u201d and earn up to 4.5% interest.<\/p>\n This may suit those saving towards a shared goal such as a big holiday.<\/p>\n Webb says that while a joint savings account will not affect your credit report, \u201cyou still need to be confident that the other person isn\u2019t going to empty the account without your permission\u201d.<\/p>\n A couple who open a joint account currently get up to \u00a3170,000 of their cash protected \u2013 double the standard \u00a385,000-a-person protection under the Financial Services Compensation Scheme (FSCS). The latter figure will rise to \u00a3120,000 from 1 December, so for a couple, the protection will be up to \u00a3240,000.<\/p>\n Any interest earned will typically be split 50:50 for income tax purposes.<\/p>\n Max your mortgage borrowing<\/p>\n High house prices mean many couples have little choice but to apply for a mortgage jointly in order to maximise their borrowing power.<\/p>\n As a rough rule of thumb, HSBC would let someone earning \u00a350,000 a year borrow up to \u00a3275,000 to buy their first home. But if they applied jointly with a partner who earned \u00a340,000 a year, they could borrow up to \u00a3495,000.<\/p>\n The lender will look at both credit records when assessing affordability.<\/p>\n Applying for a mortgage together can maximise your borrowing power. Photograph: Morsa Images\/Getty ImagesGet cheaper car insurance<\/p>\n Adding your partner to your car insurance policy can result in you paying a lot less. Insurers see those who are in a couple as lower risk than people who are single.<\/p>\n Earlier this year, data from the price comparison site Confused.com<\/a> showed the average annual cost of car insurance for a woman who was the only driver on a policy was \u00a3809. When one additional named driver who was not their spouse was added, the cost was \u00a3704, when a spouse was added it went down to \u00a3544 on average. It was the same story for men, although the premiums were different.<\/p>\n It\u2019s not just car cover: joint life insurance is usually cheaper than two separate individual policies. Insurers say this is because statistics suggest married and cohabiting couples generally live longer than single people.<\/p>\n Grab the couples\u2019 tax perk<\/p>\n