More than half of American couples have at least some separation when it comes to their finances, including 36 percent who have a mix of joint and separate accounts and 26 percent who keep their financial accounts completely separate. That compares to 38 percent of couples completely combine their finances.
Younger couples are most likely to keep separate financial accounts, according to a survey by Bankrate, a personal finance website.
The majority, 51 percent, of Gen Zers, ages 18-29, keep their finances completely separate, followed by 34 percent of millennials, ages 30-45; 23 percent of Gen Xers, ages 46-61; and 15 percent of baby boomers, ages 62-80.
Meanwhile, 45 percent of baby boomers, 40 percent of Gen Xers, 32 percent of millennials, and 22 percent Gen Zers in married/live-in relationships completely combine their finances.
A hybrid approach, combining joint and separate accounts, is most common among baby boomers, 39 percent; followed by Gen Xers, 37 percent; millennials, 34 percent; and of Gen Zers, 26 percent.
Completely separate accounts are also more common among lower-income households, with 39 percent of couples with annual household incomes under $50,000 keeping their finances completely separate, compared to 17 percent of those with annual incomes of $100,000 or more.
Couples with an annual income of $100,000 or more are more likely to have a hybrid approach, with some joint and some separate accounts, 47 percent, compared to households earning less than $50,000 per year, who have hybrid accounts, 25 percent.
“Younger adults are noticeably more likely to keep at least some of their money separate from their partner,” Bankrate Principal Analyst Ted Rossman, said in a statement. “Explanations include people marrying later and the rise of two-income households.”
Rossman said it can be healthy to have some money that you can call yours , whether you decide to put it toward hobbies, gifts, savings, investments, or something else.
When asked in the survey how early in a romantic relationship Americans should start discussing financial matters, the most common answer across all six categories was “after a few months of dating.”
| Financial topic | How Early in a Romantic Relationship Americans Believe You Should Start Discussing… | ||||||||||
| On the first date | After the first few dates | After a few months of dating | After you move in together | After you’re married | Never | ||||||
| Debt | 2% | 13% | 49% | 19% | 9% | 7% | |||||
| Spending habits | 3% | 25% | 45% | 15% | 6% | 6% | |||||
| Financial goals | 4% | 19% | 43% | 18% | 10% | 6% | |||||
| Salary | 3% | 15% | 43% | 20% | 11% | 8% | |||||
| Credit scores | 2% | 9% | 42% | 25% | 13% | 9% | |||||
| Savings/ investments | 2% | 7% | 36% | 27% | 20% | 9% | |||||
The vast majority of Americans agree that financial topics shouldn’t be discussed on a first date, with no single topic cited by more than 4 percent of respondents, according to the survey, which was conducted to align with the U.S. population. Across the six categories, Gen Zers are generally more likely to discuss financial topics “after the first few dates,” while older generations prefer to wait longer.
“Gen Zers are challenging traditional financial taboos,” Rossman said. “They’re more open to discussing financial topics such as salaries, credit card debt and bank account balances earlier in relationships.”
He said communication and transparency can help ensure compatibility and get you pulling in the same direction, rather than opposing one another.
“You don’t need to spill all of your financial details within the first few dates, but it’s smart to start addressing money goals and values in some fashion,” Rossman said.
