Open communication about money is essential to a healthy relationship. Many strive to achieve it by combining at least some of their finances and keeping joint accounts. Others, however, prefer to keep all of their accounts separate — and that's especially true for younger generations.
According to a Bankrate survey from February 2023, 43% of Gen Z and 31% of millennials say they prefer to keep all of their accounts separate. That's compared to 19% of Gen X and 18% of baby boomers.
If you'd rather maintain complete financial autonomy in your relationship, you might have to put in some extra work to ensure you and your partner see eye-to-eye on financial issues. CNBC Select offers tips on how you can achieve that and which tools can be helpful.
Be clear about how you're splitting expenses
You may be keeping your finances separate, but if you're living together, you inevitably have shared expenses, which can include housing, utilities, groceries and more. It's crucial to determine which expenses you consider shared and how you're splitting them.
If you and your partner have similar incomes, this can be as easy as agreeing on a 50-50 split. But when one person earns considerably more than the other, you need to have a serious — and potentially awkward — conversation.
Every couple will define what's fair in a different way. You may decide to divide the expenses in a way that's proportionate to your incomes. For example, if you earn $5,000 each month while your partner earns $2,500 (50% less than you), then they'll pay half of what you pay for everything. If your rent is $3,000 per month, you'll contribute $2,000 while your partner or spouse will pay $1,000.
If that doesn't sit right with you, you can still agree to pay for everything equally. But this will limit what you can afford as a couple to your partner's much lower income. In the example above, you might have to agree to live in a $2,000-per-month apartment to be able to split the rent evenly.
No matter how you split your expenses, you also need to agree on how to organize your money as a couple. If you're not completely opposed to a hybrid approach where you share some accounts and keep the rest separate, a joint checking account may be the answer. Otherwise, you need to find other ways to ensure transparency.
A budgeting app such as Honeydue can be a helpful tool. It allows you to choose banking and credit accounts to connect and share information with your spouse or partner so that you track spending and coordinate bill payments together. The app will also send you bill payment reminders helping you stay on top of your shared expenses.
Honeydue
Information about Honeydue has been collected independently by CNBC Select and has not been reviewed or provided by Honeydue prior to publication.
Cost
Free
Standout features
Allows couples to see both partners' bank accounts, credit cards, loans and investments (and each partner can select what to share with the other) so you can manage money together and see everything at one glance
Categorizes your expenses
Yes, but users can customize
Links to accounts
Yes, you and your partner's bank and credit cards
Availability
Offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
Data encryption, Touch ID and multi-factor authentication
Terms apply.
Plan how you'll save for shared goals
As a couple, you almost certainly have shared goals and dreams (and if you don't, finances probably aren't the biggest concern in your relationship). From something big like a down payment on a home to more modest ambitions like a small vacation or a new couch, you and your partner need to figure out how to manage your savings.
One good solution is to keep your shared savings in a high-yield savings account. These accounts earn higher interest rates than traditional savings accounts. And thanks to the power of compound interest — or earning interest on interest — your earnings will grow even quicker. You can also withdraw the money when you need to, although many financial institutions will limit you to six withdrawals per month before imposing fees.
CNBC Select has ranked the best high-yield savings accounts and suggests LendingClub High-Yield Savings as our top pick. We also recommend UFB Secure Savings as it's currently offering a generous APY.
LendingClub High-Yield Savings
LendingClub Bank, N.A., Member FDIC
Annual Percentage Yield (APY)
5.00%
Minimum balance
No minimum balance requirement after $100.00 to open the account
Monthly fee
None
Maximum transactions
None
Excessive transactions fee
None
Overdraft fees
N/A
Offer checking account?
Yes
Offer ATM card?
Yes
Terms apply.
UFB Secure Savings
UFB Secure Savings is offered by Axos Bank ® , a Member FDIC.
Annual Percentage Yield (APY)
Up to 5.25%APY on any savings balance; add a UFB Freedom Checking and meet checking account qualifications to get an additional up to0.20%APY on savings
Minimum balance
$0, no minimum deposit or balance needed for savings
Fees
No monthly maintenance or service fees
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
ATM access
Free ATM card with unlimited withdrawals
Maximum transactions
6 per month; terms apply
Terms apply.
Read our UFB Secure Savings review.
Create a budget
You and your partner may agree on how to split expenses, but that doesn't mean you're in sync about how much to spend. To help you get on the same page (and stay there), you need a budget.
We've already mentioned Honeydue, which is our top pick for the best budgeting apps for couples. With the app, you can set up monthly spending limits for each spending category. The app will alert you if you or your partner are about to reach a spending limit.
Another excellent option is Goodbudget which tracks your household's spending usingthe "envelope method."Essentially, an "envelope" is a spending category, and you decide on how much to assign to each envelope. This is an especially good choice if you'd rather not connect your bank accounts since the app requires you to manually input your transactions into each envelope.
Goodbudget
Cost
Free for 20 total envelopes; $8/month (or $70/year) for unlimited envelopes
Standout features
Allows users to plan their household's spending using the "envelope method," where they allocate a certain amount of their income into categories like groceries, rent and debt payoff. Users are only supposed spend what's in their envelopes and if they go beyond their budget the envelope will show red to indicate that they overspent
Categorizes your expenses
Yes, but users can customize
Links to accounts
No, users manually create "envelopes" and input their transactions
Availability
Has a web-based version, and also offered in both the App Store (for iOS) and on Google Play (for Android)
Security features
256-bit bank grade encryption in a secure data center
Terms apply.
Consider a prenuptial (or postnuptial) agreement
If you and your partner decide to tie the knot, you're not just entering a new phase of your relationship — you're also taking on a new set of legal responsibilities that directly affect your finances as a couple.
If you have an asset in your name, you might believe it's yours only. Say, you're paying a mortgage and the deed is solely in your name. Or maybe you've financed a car, and since you're the one responsible for this debt today, you might assume your partner will never be.
This might not be the case for spouses, especially in the case of divorce or death. These aren't pleasant things to think about, but separating your finances doesn't offer much legal protection when it comes to such events.
If you're getting married, consider signing a prenup. This will allow you to put in writing what you want to happen to your assets. You can change this agreement further down the line if you need to. If you're already married and don't have a prenup, a postnuptial agreement might be an option. Talk to an attorney about what you should consider and how to proceed.
Keep communication open
Managing finances successfully as a couple requires frequent and open communication. Your financial life is dynamic, and circ*mstances, goals and priorities can change for both you and your partner. By regularly having honest conversations about money, you can ensure you're staying on track with your current budget and goals, as well as keep each other aware of any changes.
Plus, as hard as it can be, talking about money can improve intimacy in your relationship. It's a tough subject that can make people feel vulnerable. Showing understanding — especially if you and your significant other have different money styles — and working as a team can bring you closer.
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Bottom line
If you're married or living with your partner, you can choose to keep your finances separate. But even in this case, you'll still have shared goals and expenses that call for a budget. Just like with anything in a relationship, communication is key. Keep it constant and honest, and it might help you support each other in new ways and reduce confrontation.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.