Banking: Should Couples have a joint account? FINANCENGR. The concept of running a joint account amongst married couples had continued to generate different ideas with varying suggestions.
This is not what most people will like to be trapped into, however there exist different perceptions and opinions. Which either side of the divide you are, kindly relax and read carefully as this guide will educate your mind to a reasonable conclusion.
A joint account suggests that more than one party is involved and they could rightly and possibly be co signatories to the account, this implies that the parties have authority to the account equally depending on the account mandate instruction though.
Let’s start by admitting some bitter truths about joint account in a marriage, this we could refer to as overall importance of a joint account.
Importance of a joint account in a family/marriage:
. To run an inclusive family finance: Often times some parties in marriage feel marginalized and not being carried a long in financial matters of the family. This is a common occurrence in Africa where women are perceived as weaker vessels and are subject to a degree of standard far below the male folks when it comes to who runs the family affairs.
Running a family joint accountwill limit gaps like these allowing women reasonable participation both in their nuclear homes and the society at large. Women need a sense of belonging in the family and this can be achieved when men accommodate their wives in financial participation.
Calling your wife into a joint account may not be an easy task, but the ingenuity and sincerity in which you repose on this course will definitely define a new ground in your family. Family finance shouldn’t be a one way traffic, the more involved the women are the better it becomes, because they are the real home managers. Your wife deserves a sense of inclusiveness today.
. Create trust and bonding:Financial aspect is one key area everyone will like to trade with caution, you don’t hand in your money to people when you do not have the least trust that your funds are safe in custody. Events have proved that couples hardly trust each other with their money as such limiting bonding which is very key to marital advancement and success.
The moment your wife can confide in you with her money, the rest will be history likewise the man. Men often times shy away from this responsibility with a notion that the woman would likely know their financial status, thus creates a high level of insecurity, as much as that could be true, you should work on eliminating negative ideas from your wife. Create trust, love and bonding with your spouse by involving her in financial inclusion.
Read also: How to save money for your child’s future
. Adequate budget/spending plan: Running a joint account with your spouse will enable you make proper budget since you’re aware of your expected income before hand than when you are just budgeting on your personal income. This empirically is an important aspect of your marital life that must not suffer untold hardship.
Individual but collective capital contribution to the family finance is the way to go, without proper collective budget you are bound to fail in meeting your financial objectives. Budget decides the future financial direction of the family, as such parties involved should have an undiluted understanding.
Decision making becomes easy since the spouse knows their capital projection, they operate within the tenets of the family earnings than incurring unnecessary debts that will hamper the growth of family finance.
. In event of death: Death is inevitable, many would not be too pleased to know, however there’s nothing you can do about it. There have been instances where women and children suffer untold hardship because the bread winner died without a will or by accident, could not declare most of his assets and funds laying in different banks.
It’s pertinent that spouses run a family joint account where all parties are signatories to the account which means either to sign. Any of the spouses can have access to the account at any given time, it has helped forestall normalcy in times of trouble.
Your loved one could reclaim your funds in banks should death occur, but it’s as well beautiful if you can make it easier for them than going through probate and obtaining letter of administration which may not be a lighter experience.
Joint account has unending advantages, it has the ability of making life easier both death and alive.
Spouse could choose not to have a joint account for varying reasons however the better part of it supersedes the downside.
How to open a joint account:
Visit any bank of your choice, demand to open a joint account with your spouse. You are however required to provide the following
. Two passport photographs each for both of you.
. A utility bill/NEPA bill, water bill etc.
. A completed joint account opening form.
. BVN number
. Operating balance as the case may be, usually at your own discretion.
In event where you have been running the account individually and now wants to include your spouse as a signatory to the account, you are required to fill a customer information update form with two passport photographs with a specimen signature. Upon completion, your spouse will be added as a signatory to your account which can then be referred as joint account.
Note: It’s always advisable to have either to sign in your mandate instruction if the joint account is between spouses. If the mandate instruction is both to sign, then the essence of family joint bank account has been defeated out rightly because each of you must sign before you could cash out. In a scenario where a party is not around to sign, withdrawals must not continue.
Not really deciding how you should run your finance, just to let you understand that it pays to do it the right way for the benefit of all.
Couples should have a joint bank account, it goes a long way to promote peace, love, understanding and mutual respect in the family. Everyone decides what the money should be used for, when, where and how. Do you have a joint account with your spouse? Let’s here you out, if not, it’s not late to build one today.
Raphael is a seasoned and dynamic writer, with interest in Banking, personal finance, entrepreneurial development. A councillor and motivational speaker.