Three household financial management strategies

Who will finance daily expenses? Who will allocate for investment? Much more needs to be discussed and compromised on finance. Don’t get the wrong strategy!

In marriage, honesty is the main key. In any case, including finance and management. Even though some couples may not be comfortable talking about it, try to open up to each other about this. Some say, never lie about money. Lying about finances will damage the partner’s trust and can ultimately damage harmony.

If you are getting married soon or maybe just married, and haven’t talked about financial management with your partner, do it now. As soon as possible. Be open about your savings, assets, and investments. Similarly, the debt you still have to bear. Make sure you and your partner have a good understanding of how your financial condition is.

Not a few cases of households damaged or ended due to financial disputes. Do not let that happen. What can be done?


Also read:  5 Strategies to Manage Finances Well


Three household financial management strategies


In general, there are 3 household financial management strategies, namely:

  • Couples manage their money with separate accounts
  • Manage finances with a shared account
  • Or a combination of the two, some are separate, some are managed with a shared account.

Further about these 3 strategies, consider the following explanation, summarized from  Investopedia :


Financial management with a separate account


There are couples who choose to continue to manage their own finances, with their own account, after marriage. It’s okay, it’s each choice if it’s already agreed. Usually, both feel comfortable because they are accustomed to managing their own finances. However, couples who choose this strategy still have to communicate with each other and agree on household expenses. Who pays what.

Some choose to two the same amount for household expenses, there are also those who agree proportionally according to the income obtained. What are the advantages and disadvantages of this method?

  • Strengths : Each will be responsible for their own expenses, including paying off debts that have existed since before marriage. If there is agreement on who pays what, it will be fairer for both.
  • Weaknesses:  This financial management model will become more difficult if there are already children who also need money. Or, if one of you changes jobs so you have to adapt or if one of you wants to go back to school. If you save for retirement with your own income, you might not be able to optimize your investment.


Financial management with joint / joint accounts


Some call the pair’s financial management model as an ideal form. You can open a joint account, and make scheduled transfers for monthly expenses, including children’s needs.

  • Pros : It’s easier to keep track of your budget and expenses. In addition, there is no monthly distribution of resources, and there is no significant change in financial strategy as family members (children) increase.
  • Weaknesses : Assessing your partner’s shopping habits can cause discomfort. Moreover, if one of you has a greater income.


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A combination of two strategies: separate and combined


This combination model can be complicated or  complicated . However, it can be the best solution for some couples. The idea behind this method is that there is an agreement to transfer a certain amount to a joint account, namely for savings, debt, and pensions. In addition, each individual still has a personal account that is used for any wants or needs which are not shared costs.

  • Strengths : There are conveniences that you get with a joint account, including not having to deal with income differences when paying bills; each has the freedom to buy what you want without discussing it with your partner. However, you can also work together with your partner to achieve shared goals and retire.
  • Weaknesses : This method is easy to track, but requires opening and managing a number of bank accounts.




In addition to agreeing on financing for household expenses, investment talks are also important. For those who are  single  or already married, arranging financial strategies for the long term must be done. You both have to talk about the chosen routine investment, such as preparing a pension fund, children’s education costs, property investment, including insurance.


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For example:

  • Pension funds: each has its own managed account.
  • Insurance: Family insurance, the premiums are paid together, through a joint account. You can check various family insurance products here: Cigna Family Insurance.
  • Children’s education funds: Provided together, deposited in a joint account.
  • Installment of house / apartment / land or other assets: Paid together or one as agreed, the money is deposited in a joint account.

And other investments that you want to pursue in accordance with the agreement. If you have not yet decided on a joint investment to buy, try to learn more about  Cigna investment products  such as Cigna MultiProteksi Extra, Cigna Investa Plus, and ProInvesta Prima.

In addition, there are also financial investment options such as Capital Link, Cigna Fixed Income, and various other products. Learn more in the  Cigna Options Fund .


New partner financial tips


  1. Be a solid team

In the case of any matters in the household, do it in team work. Working in a team, you must have the same goal. Always pushing and building with each other.

  1. Be honest

Honest is the best choice, especially if it is related to financial management in marriage. If you make a purchase that you shouldn’t make, tell your partner. He will appreciate because you have been honest. There are big consequences that will be borne if you lie to your spouse about financial matters.

  1. Sharing responsibilities

Managing finances in a marriage does not mean one holds the ball for the household. This involves the two parties working together and sharing responsibilities equally.

  1. Believe in your partner

Believe in your partner to hold financial control. Don’t ask how much money has been spent. Learn to keep control wisely, and trust. Creating a joint account is the best way to practice this.

  1. Study with each other

Never think that you have better knowledge of finance. There are times when your partner is more experienced and disciplined in controlling finances. Learn from one another and remind one another.

Once again, financial matters in a marriage can be complicated. However, being open and honest will facilitate the process. There are no best financial practices for financial management. One pair with another pair can be different.

After you choose a method, don’t be afraid to change it as needed. As a team, you need to experiment with various strategies to find the best strategy.


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