Shot of a young couple planning their budget together at home
Money is one of the biggest sources of stress in relationships, yet many couples struggle to talk openly about finances. Whether you choose to keep accounts separate, combine them fully, or take a hybrid approach, the key is communication. Discuss spending habits, savings goals, debts, and bills early—and revisit your plan if circumstances change.
Handling Bills
When moving in together, decide how to split household costs. You can share utilities 50:50 or proportionally to income. Some subscriptions, like Netflix or Amazon Prime, can be halved, and gyms or other services may offer couple discounts. Joint billing can also help, but remember that both names on a utility account mean shared responsibility.
Joint Accounts vs. Individual Accounts
Opening a joint current account can simplify shared expenses but requires trust. Each partner has access to spend from it, and debts affect both credit histories. Many couples choose a hybrid approach: a joint account for bills and savings, with separate accounts for personal spending. This balances transparency with financial independence.
Saving Together
Joint savings accounts, like those offered by some digital banks, allow couples to work toward shared goals such as holidays. Cash in joint accounts is often protected under deposit schemes up to a certain limit, and interest is typically split evenly for tax purposes.
Borrowing and Mortgages
Applying for a mortgage together can increase borrowing power, as lenders consider both incomes. High house prices often make joint applications essential for first-time buyers.
Insurance and Tax Benefits
Adding a partner to car or life insurance policies usually lowers premiums. Married or civil-partnered couples can also take advantage of tax perks, such as the Marriage Allowance, which allows the lower earner to transfer part of their personal allowance to reduce the higher earner’s tax bill.
Inheritance Planning
Marriage or civil partnerships offer inheritance tax benefits. Passing assets, including a home or pension, to a spouse typically avoids inheritance tax, whereas unmarried couples should complete beneficiary nomination forms to ensure their partner inherits as intended.
Key Takeaway
Open conversations about money, combined with careful planning, joint goals, and awareness of financial perks, help couples avoid stress and build a secure future together.
