Is Joint Banking the Key to a Happy Marriage? (2024)

• Respondents who used only joint bank accounts were also the most likely (60.3%) to say that they were “very satisfied” with their relationships.
• 55% of couples who use only joint bank accounts say they never fight about money, while only 39% of partners who have personal accounts can say the same thing.
• 1 out of every 4 (25.5%) married Americans said that not adhering to their budget creates the most financial-related problems in their relationship.
• People who used personal accounts only were the most likely (10.6%) to say they argued with their partner three or more times per week about financial issues.

A vast majority of respondents (80%) said they used joint bank accounts, with 40.7% saying they used only joint accounts. Those who said they only used joint accounts were the most likely to say they were “very satisfied” in their relationships. They were also the least likely to say they argued about money with their partner three or more times per week.

At the same time, more than 5% of couples who keep their finances separate admit to being dissatisfied or very dissatisfied in their relationship. In contrast, none of the respondents who used only joint bank accounts only said that they were “very dissatisfied” in their relationship, and only 2.0% said they were “dissatisfied.”

What Couples Fight About When They Fight About Money

Our survey revealed that couples who merge their finances fight less often about money than those who don’t. But we also wanted to learn not just whether or not couples argue about money, but what those arguments are about. That’s why we asked respondents to tell us the biggest reasons for their disagreements over money.

The single most common reason respondents listed for financial fights was “not adhering to our budget,” with 25.5% selecting it. “Splurging on things we can’t afford” was only slightly behind at 24.3%. Other issues included unequal involvement in managing finances together, dishonesty about what money is spent on, and which partner makes more money.

Our researchers noticed that, with the exception of arguments over which partner makes more money, each of these issues is one that could be alleviated by joint banking according to what we learned from our expert interviews and academic research. So, it should come as no surprise that respondents who used a joint bank account were less likely to report having regular financial arguments with their partner.

Previous studies have demonstrated a correlation between joint banking and relationship satisfaction. However, a recent study published in the Journal of Consumer Research in December 2023 is the first to show evidence that increasing financial interdependence can have a positive effect on relationship quality among couples. In other words, it revealed that joint banking can actually be good for a marriage, not just that joint banking and marriage satisfaction are related.

The paper, “Common Cents: Bank Account Structure and Couples’ Relationship Dynamics,” studied the banking practices of more than 500 married individuals over a period of two years and provided some enlightening insights into those practices, as well as how adopting a joint banking model affects relationships.

Dr. Jenny Olson of Indiana University, who led the study, told the MarketWatch Guides team that her research provided clear evidence of the impact of joint banking. Her researchers followed couples for two years, measuring relationship quality and financial harmony at six different time points.

Couples who maintained separate bank accounts showed the normal decline in relationship quality over time, Olson said. But couples with joint accounts did not.

“The differences in trajectories were so pronounced that by the end of two years, couples in the joint condition were significantly happier than those in the other two conditions,” Olson said.

As to why joint banking has such a measurable effect on relationships, Olson said that it mostly comes down to communication.

“Having joint accounts affords an opportunity for communication,” she said. “Specifically, joint accounts come with greater transparency, meaning that both partners can see — and potentially comment — on account activity. Partners can set goals and monitor progress toward achieving them.”

To get better insight into why joint banking can be beneficial, we spoke to several financial experts from universities around the country. These experts were in unanimous agreement that merging finances is a healthy practice for couples in most cases.

In general, the consensus was that joint banking is a powerful tool for helping couples deal with financial issues that can make or break a relationship. Most also agreed that merging finances can have benefits beyond just practical financial issues.

Money Is a Common Source of Arguments Among Couples

Dr. Megan McCoy, assistant professor of personal financial planning at Kansas State University, told us that choices around money are often substantial issues among couples. Major points of conflict she’s seen include:

• How much can we spend without asking one another?
• Should we have joint accounts?
• How should we handle debt repayments?
• How much should we spend on kids or other family members?
• What are our credit scores and what they should be?
• How much should we devote to charitable giving each year
• How much is “enough”?

“Long story short, all big financial decisions have a big impact on relationships,” McCoy said.

And any conflicts here can and often do have a detrimental effect on relationships, said Dr. Megan Ford, director of the ASPIRE financial clinic at the University of Georgia.

“Ongoing financial conflict can definitely have a significant and eroding impact for intimate relationships,” Ford said. “Financial conflict is a reason often linked to why relationships end.”

In fact, financial conflict is responsible for the vast majority of divorces, said Dr. Edward Horwitz, Mutual of Omaha Endowed Chief Risk Officer at Creighton University. He said that research indicates that 80% or more of marriage dissolutions are due to money stressors.

Dr. Victor Harris, Associate Professor and Extension Specialist at the University of Florida, said that this stress boils down to issues of trust within a partnership.

“Trust includes being able to depend on a partner to be dependable, responsible, and accountable,” he said. “When trusts are broken through financial irresponsibility or mismanagement, it harms the overall relationship.

But Ford points out that the outsized impact that financial issues have on relationships can also provide an opportunity for couples to align more closely.

“On the flip side, when couples feel in sync about financial issues, this can actually serve to strengthen a relationship,” she said.

Experts Tend To Recommend Joint Banking for Most Couples

These benefits – especially partners feeling in sync with one another on financial matters – are why the experts we spoke to all recommend joint banking as a practice, or, at least, having a discussion about it.

Joint banking has some immediate practical benefits, like holding each other accountable for wasteful spending, McCoy said.

“Joint account holders are less likely to buy wasteful items, such as a second fancy frappe in one day, that may be holding you back from reaching your goals,” said McCoy.

Joint banking also allows couples to better share the responsibility of making financial choices around budgets and spending, said Dr. Jeff Dew, associate professor at Brigham Young University.

“For married couples, one of the best financial decisions they can make to help their relationship grow is to decide to share financial decision-making power equally,” he said. “For example, when both spouses have equal say as they create a household budget, they will feel that things are more fair in their relationship. Also, when both spouses have equal power in making the budget, they will feel that they have an equal stake in making the budget work.”

Joint Banking May Not Work For Everyone

But while academic research and the experts we interviewed agree that joint banking is often a beneficial move for couples, that isn’t always the case. Dew said that complicated finances and other circ*mstances within some relationships could mean that keeping finances separate is the more manageable banking setup.

“There are always exceptions,” he said. “For example, if one spouse has some type of addiction — such as a substance abuse addiction or gambling addiction — then keeping finances separate would be important. Also, there is some research that suggests that those entering a second or higher marriage do better by keeping at least some of their finances separate.”

Even in this scenario, Ford said that it’s important for couples to discuss it as an option, even if couples decide that it isn’t the right move for them.

“Ultimately, this decision is not one-size-fits-all,” she said. “I encourage partners to weigh the pros and cons and land where they feel most comfortable.”

Olson said that simply having a candid discussion about joint banking and other financial decisions can have a positive impact in itself, whether joint banking ends up being the choice couples make eventually or not.

“I suggest that couples still have a conversation about whether merging is right for them and their joint financial goals,” she said.

Joint Banking Helps With More Than Just Finances

Merging bank accounts offers financial benefits for partners, such as improved financial discipline. However, the benefits of joint banking can also extend beyond a couple’s finances. One of the main areas in which that happens is in trust between partners, according to Horwitz.

“Sharing the account information by reviewing the monthly statements can help provide transparency and can help to avoid feelings that one spouse or partner is keeping a separate account and hiding money from the other,” he said.

Increasing trust and transparency in the financial realm can lead to an increase in trust between partners overall, said Jared Hawkins, home and community extension professor at Utah State University Summit County Extension.

“Mutually agreeing upon financial goals and staying faithful to those goals can signal commitment and trustworthiness to each other, which can enhance relationship security,” he said. “Additionally, couples who make wise financial decisions can better help each other achieve personal ambitions and work toward shared goals.”

Making the decision to move to a joint bank account is a major step in any relationship, and one that people have varying levels of comfort with. In addition, the researchers and experts we talked to stressed that merging checking accounts or savings accounts isn’t the right move for every single couple. Different situations can complicate people’s personal finances and the decisions they make around them.

However, the evidence shown in academic studies and the perspectives of experts in the field suggest that merging finances has a strong possibility of strengthening a relationship. Given that potential, joint banking is a practice that is, at the very least, worth discussing.

“We hope that our work sparks a conversation among couples,” Olson said. “On average, joint accounts preserve relationship quality across the potentially rocky newlywed period, laying the foundation for future relational health.”

To get a better understanding of how joint banking as a practice impacts relational health, our team conducted an extensive study into the topic. We looked at previous academic research, talked to some of the country’s foremost experts on personal finance and relationships and carried out a 2,000-person survey about banking practices and attitudes among married individuals. Survey responses were collected on January 22, 2024. The margin of error for the 2,000-person sample size was +/- 3%, with a 95% confidence level.

The information sources we used for this study include:

• Common Cents: Bank Account Structure and Couples’ Relationship Dynamics; Jenny G Olson, Scott I Rick, Deborah A Small, Eli J Finkel, Journal of Consumer Research, Volume 50, Issue 4, December 2023, Pages 704–721
• Interviews with subject matter experts from major American universities (listed in the “Our Experts” section below)
• 2,000-person survey of married individuals, comprised of 14 questions and conducted via Pollfish on Jan. 22, 2024

Our Experts

Dr. Jenny Olson, Assistant Professor of Marketing at Indiana University’s Kelley School of Business

Dr. Jenny Olson is an assistant professor of marketing at Indiana University’s Kelley School of Business. Her research focuses on consumer behavior within interpersonal contexts, with a particular emphasis on consumer financial decision-making within couples. For example, she examines the interplay between money and couples’ relationship formation and quality (e.g., how partners’ bank account structure, financial infidelity, and conversations about money affect relationship and financial well-being).

Dr. Edward Horwitz, Mutual of Omaha Endowed Chief Risk Officer at Creighton University

Edward Horwitz, Ph.D., MBA., has a 35+ year career in the financial services industry, Dr. Horwitz has educated tens of thousands of agents, financial planners, wealth managers, and consumers, in the field of personal finance and risk management. He recently served as Creighton’s chief risk officer and vice president of enterprise risk management. Ed is currently an associate professor of practice in the economics and finance department at Creighton’s Heider College of Business. Ed also serves as the Mutual of Omaha endowed faculty in enterprise risk management.

Dr. Megan Ford, ASPIRE Director & Assistant to the Dean for Applied Interdisciplinary Programs at the University of Georgia

Dr. Megan Ford is a financial therapist and faculty member at the University of Georgia. She’s an expert in couples and finances.

Dr. Jeff Dew, Associate Professor at Brigham Young University

Jeff Dew studies everyday issues in family life. The majority of his research, for example, examines how financial and time-use issues influence family relationships. He also has expertise in family virtues research.

Dr. Megan McCoy, Assistant Professor of Personal Financial Planning at Kansas State University

Dr. Megan McCoy, Ph.D., LMFT, AFC, CFT-I is an Assistant Professor at Kansas State University’s Department of Personal Financial Planning. She teaches courses at the undergraduate, graduate, and doctoral levels focused on financial well-being, financial therapy, and couple dynamics regarding finances.

Victor Harris, Associate Professor and Extension Specialist at the University of Florida

Victor William Harris received his MS and PhD degrees in family, consumer, and human development from Utah State University. He is currently an associate professor and extension specialist at the University of Florida in the Department of Family, Youth and Community Sciences. He regularly presents at conferences and other venues on topics from his research, which include: close relationships – with an emphasis in communication, relationship quality, marriage and parenting education, and balancing work and family; teaching pedagogy with an emphasis in empirically-informed program design, teaching methodologies, curriculum enhancement, group process, and effective online instruction; and cultural diversity with an emphasis in spirituality and religiosity manifest across world cultures and religions.

Jared Hawkins, Home and Community Extension Professor, at Utah State University Summit County Extension

Jared Hawkins is the home and community extensionprofessor in Summit County. Jared graduated with a B.S. in finance and an M.S. in marriage and family therapy from Brigham Young University. He is completing his dissertation for his Ph.D. in couple, marriage and family therapy from Texas Tech University. Jared is a licensed associate marriage and family therapist and has most recently worked at Covenant Sex Therapy. Jared has also taught undergraduate and graduate courses as an adjunct instructor for Texas Tech University and Alliant International University. He is passionate about personal finance, youth mentorship, premarital education, protecting the environment, building a sense of community, and reducing loneliness. He is excited to use these passions to serve Summit County. Jared is originally from Dallas, Texas, and has fallen in love with the mountains since moving to Utah. He enjoys spending time in nature and playing piano, pickleball, and volleyball.