how we organize our bank accounts

There are many approaches to managing joint finances. You can keep your money completely separate, merge it completely, or be somewhere in the middle. We fall in that "somewhere in the middle" category. We've also found that it helps us to have separate accounts for separate purposes. 

We have the following bank accounts and retirement accounts:

3 total checking accounts:

1 joint checking account: all of our joint monthly bills are automatically debited from this account. This includes our mortgage, utility bills, groceries, gym membership, and cell phone bill.

2 separate personal checking accounts: Chris and I each have a personal checking account and use these accounts to pay for personal expenses like clothes and haircuts as well as some miscellaneous joint expenses like going out to eat or minor trips to Home Depot or Target. Since Chris makes more money he ends up paying more frequently. We also try to put expenses like this on a credit card in order to earn points.

5 total savings accounts:

2 separate personal savings accounts: Chris is only paid 9 months out of the year so he needs a savings account to save for summer bills. In addition we also use our separate savings accounts to save for personal big ticket items (such as me saving for a newer car) and travel. Even when we travel together we usually contribute roughly equal amounts from our individual savings accounts.

2 joint short-term savings account: Before having a baby we just had one joint short-term savings account. We started a second one when we found out we'd be parents so that we could prepare for the added expense of a baby. We currently use the money we saved in that account to offset the cost of daycare.

The other short-term savings account is used for house purchases such as furniture and general improvement. We tend to save up a bit of money, a few hundred dollars or so, and then use it up so there is a lot of flux in this account.

1 joint long-term/emergency savings account: We are working towards saving up six months of living expenses so that in the unlikely and unfortunate event that we BOTH lost our jobs we would have a six month of cushion before we were in real trouble. This account also might be used if our air conditioner/fridge/dishwasher suddenly went kaputz and we couldn’t afford to replace it otherwise.

5 total retirement accounts:

2 separate 401(k) accounts: We each have 401(k) accounts through our employers. I contribute 7% of each paycheck to mine and my employer contributes 7%. Because Chris works for the state his is a bit different, he must contribute 11% of his paycheck but his employer also contributes 9%. If he stays with Arizona State University for 10 years he will be guaranteed a pension when he retires.

1 403(b) account: I also have a 403(b) account and contribute 3% of my paycheck; my employer does not contribute to this account.

2 separate Roth IRA accounts: We each have Roth IRA accounts that we contribute to. Chris contributes more regularly to his than I do to mine.

Aaaaaand there you have it! A grand total of 13 different banking accounts. It might seem a bit overwhelming when you read it all at once but it’s a system that functions very smoothly for us. And that's the key with finances, it has to work for YOU.

As always, I'm happy to answer questions. Leave a comment or send me an email.

Happy financial planning!

4 responses to “how we organize our bank accounts”

  1. Katie Price Avatar

    Wow, thank you for sharing this! It’s good to know that someone else has joint and seperate counts too. Most of my friends look at me all cock-eyed when I say that we have personal accounts too. Overcoming student-debt is going to be a big one for my fam too, as my husband is in med-school and we have close to 100k in loans already, plus the mortgage. Finances can be so stressful. I could learn a thing or two from you about proper planning! Thanks again.

    1. Kelsey Avatar

      Thanks Katie! The combo of joint and separate accounts works so well for us too and I like that both Chris and I have an active role in our finances that way. Yes! Finances can be totally stressful. Especially the looming loan debt and mortgage, can totally relate. What helped me so much was when I learned to write out a budget and account for every expense (Chris taught me that). It felt overwhelming at first but once I had it all down I felt more in control of my money…instead of the other way around.

      Chris and I make it “fun” to look at finances by having dessert while doing so or going out for coffee. It seems like there’s so much anticipated stress around finances and those things make it seem less scary. I’ve also found Suze Orman books to be practical and helpful. Thanks so much for stopping by!

  2. Kristen Avatar

    Thanks for this advice. As I’m making more money in my business, I’m leaning towards opening up another account for just my earnings. I think it will help me be more accountable with what I am spending in the long run. My MIL has her own account even though she never had a paying job. Every time Dad got paid she put some money in her own acct. (she called it her allowance 🙂 for personal things and giving/ministry. She also gave him $20 for eating out during the week, ha!) She said it took out the “can I?” question for when she felt led to give and that was helpful for both of them. Just a thought for other readers. We don’t do this plan but I’m leaning more towards that. Not to limit me, but just to make me more aware. My husband thinks I’m crazy.

    1. Kelsey Avatar

      I think having your own business account is a very smart idea, it’s definitely easier to track spending/earning that way and for growing a business keeping meticulous finances is important. I might open a separate business checking account for my blog/podcast/e-course once my e-course launches so that I can keep track of earnings/spending more closely. There is that sense of autonomy that you gain for a separate account, even if your spouse has access to it, and I think sometimes that can be important, you don’t feel that you need approval for every purchase, even it’s just a sense that you are projecting yourself. So I don’t think it’s crazy at all! Good luck to you as your grow your business!

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