When couples are deciding whether or not to combine their finances, this study can help.
Research from Cornell University found that combining finances creates higher satisfaction in relationships and the happiest couples.
Here’s what else the study found.
What did the study find?
The study found that, “whether or not couples combine their money, specifically liquid wealth, may help determine whether their relationship will last,” according to CNBC.
“We did see that couples who pool their finances are less likely to break up than couples who keep their finances separate,” associate professor at Cornell University and co-author of the study Emily Garbinsky said.
Garbinsky said that joint finances overall helped all couples but did give greater benefits to those of low income.
Researchers also found that couples who combined their money referred to those assets as “our money” rather than those who kept their money separate, who referred to it as “my money.”
Business Insider reported that experts say couples who pool money together have more transparent budgets which leads to happier relationships.
“When we put our finances together, that changed it all because I could see what she was spending, she could see what I was spending,” a couple told Tai and Talaat McNeely on “His and Her Money,” podcast.
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How many couples are actually combining finances?
Bankrate reported that about 43% of married couples have combined their money according to a survey done.
About 37% of millennials maintain separate banking accounts, according to a survey by Business Insider and Morning Consult.
Nerd Wallet reported that almost half of Gen Z adults in committed relationships say they don’t combine their finances with their significant other.
Baby boomers were the most likely generation to have combined bank accounts with their significant others further showing the trend that couples in younger age groups are not combining their finances.
Why are couples not combining finances anymore?
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TIAA reported that some couples keep their finances separate so they feel that they are able to maintain independence and self-identity within their relationship.
Depending on which partner makes more than the other, that information can cause strains in relationships, according to NPR.
In an American Family Survey, it found finances to be one of the main pressure points in relationships today, according the Deseret News.
“It could be just there was a lot of economic aid during the pandemic. Now that aid has largely gone away ... it’s a little more likely that you’re going to miss a bill or not have enough to eat or skip a doctor’s appointment,” BYU political science professor Jeremy C. Pope said.
