How Many Accounts Should You Have?

Published on October 24th, 2017

Knowing how to properly and efficiently manage your money can be difficult. Choosing a credit union, setting up different accounts, deciding which credit card is best for you, and staying on top of your bills is a lot to keep track of. To figure out how many accounts you actually need when it comes to banking in Schiller Park, decide which category best fits your situation.

Single Young Adult

If you are a single young adult in your twenties who recently graduated from college, typically you only need to set up two accounts: a savings account and a checking account. Your paychecks should be deposited into your checking account and you should use this account for spending and paying bills. You should also set up a savings account for unexpected expenses. Separating this money from your everyday spending account will help it to earn interest and keep you from spending it unless you really need to.

Married With Children

Banking can become a little more complicated once you are married and have children. Your savings goals are often higher and you may need to set up additional accounts that are more specialized. It’s recommended that you and your spouse have a joint savings account and a joint checking account for your day-to-day spending.

Although we recommend that a married couple should have a joint checking account, some in the financial industry disagree. We recommend reading “The Case for (and Against) Spouses Having Joint Checking Accounts” where they discuss the pros and cons of having a joint or separate checking account and see which works best for your marriage.

Finally, you may want to set up an account for each of your children as well, whether that is a savings account or tuition account.

Retired Couple

Once you and your spouse retire and the kids are out of the house, it’s not a bad idea to start scaling back. Hopefully, your car and maybe even your mortgage are paid off or close to being paid off at this time. Besides your checking account for daily spending, a joint savings account is all you really need.

If you’re in search of banking in Schiller Park and aren’t sure how many accounts you need, contact Leyden Credit Union today and we will help you set up the right accounts for your financial situation!

Courtesy of Time

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