Why one financial planner says spouses shouldn't ever keep separate credit cards
And then there are those spouses who openly decide to have their own personal accounts and credit cards so they can spend that money guilt-free on whatever they please.
Certified financial planner Jeff Motske, author of "The Couple's Guide to Financial Compatibility: Avoid Fights About Spending and Saving & Build a Happy and Secure Future Together," says this way of thinking is common in many of the couples he meets.
However, he says, having separate credit cards will most likely end up doing more harm than good for your finances.
He writes:
I get it. Truly I do. But, as the saying goes, 'There's no I in team.' Remember the focus here is on you as a couple: you're a team, a unit working to build a better life together. When you have your own credit card it's that much easier to hide purchases, and, ultimately, incur debt.
For this reason I advise against it. Both names should be on all cards, and both of you should review the monthly statements.
And if you're thinking that you won't have a part in any possible debt your spouse racks up on their personal credit card, Motske says you're wrong. The author explains that both spouses are liable for most debt incurred during marriage, even if it wasn't you who did the spending. And that doesn't go away if you split up.
"If you split up and your spouse owes $70,000 in debt, you're very likely going to be responsible for it as well," Motske says. "And if your spouse chooses not to pay that debt, you're liable for it. So it's to your benefit to know exactly how much is being spent each month."
Motske does add one caveat to his advice: "I do think it's important to have your own bit of fun money to spend on yourself. It can be 'secret' only in the sense that you don't have to clear your purchases with your spouse." He advises not going overboard with that money, and says it should be "income appropriate."
If your annual salary is $50,000, he suggests, set aside $50 per person per month. If you make $150,000, each person can have $150 to spend every month.
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Markets rebound in early trade amid global rally, buying in ICICI Bank and Reliance
- Women in Leadership
- Rupee declines 5 paise to 83.43 against US dollar in early trade
- Election Commission issues notification for sixth phase of Lok Sabha polls
- 6 Coffee recipes you should try this summer
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market