How to Manage a Joint Checking Account

Communicate and establish clear guidelines

Before opening a joint checking account, it’s important to have an open discussion about how the account will be used. Talk about money openly, sharing your individual spending habits, financial values, and overall goals. Establish guidelines regarding who will have access to the account, how transactions will be managed, and how often you will review account activity together. This sets a strong foundation for joint money management.

Agree on expenses to use the account for

Identify which expenses will be paid from the joint account. Having clarity on this can prevent misunderstandings and helps with budgeting. Consider shared bills like:

• Housing costs. Rent or mortgage payments
• Utilities. Electricity, water, gas, internet, and phone bills
• Groceries. Regular shopping for food and household essentials
• Transportation. Fuel, maintenance, and insurance costs for a shared vehicle
• Vacations. Travel expenses, hotel stays, and entertainment during trips.
• Education. School supplies or tuition fees if applicable

By clearly defining and agreeing on spending categories, both parties can feel secure that the account is being used appropriately and that both partners are contributing their fair share.

Set a budget together

Creating a joint budget is an important step in managing your finances together. Sit down and outline your combined income sources, fixed expenses, and variable costs. Here’s a way to approach it:

• Determine total income. Combine all income sources, including salaries, freelance work, and any side gigs
• List expenses. Categorize expenses into fixed (rent/mortgage, utilities) and variable (groceries, entertainment)
• Set savings goals. Decide how much you want to save each month for various purposes.
• Track non-essential spending. Decide your budget for non-essential spending categories to avoid overspending

Review and adjust your budget regularly, especially if income or expenses change.

Monitor the account regularly

Regularly reviewing your joint checking account activity is essential for staying on top of your finances. Make it a habit to check the account at least once a week. During these checks:

• Review transactions. Look over recent purchases to see if all expenses are accounted for and there are no unauthorized transactions
• Look at spending patterns. Identify any spending habits that might need adjustment. Discuss any unexpected expenses openly
• Check for fees. Keep an eye on any fees you're paying like maintenance fees or ATM charges, and discuss ways to minimize them

At TD Bank, you can monitor your account through our online banking services and the TD Bank App 24/7. You can review balances and transactions, transfer funds, deposit checks, pay bills, view online statements, and more.

Watch for overdraft transactions

Overdraft transactions can lead to costly fees. To help avoid fees:

• Set up alerts. Use your bank’s alert system to notify you when your balance falls below a certain amount. With TD Bank, you can customize notifications to fit your daily banking needs
• Maintain a buffer. Keep a small cushion in the account to avoid accidental overdrafts. This can be part of your emergency fund
• Regular monitoring. As mentioned earlier, monitoring often will help you spot potential overdrafts before they happen

Decide what to do with extra money

Occasionally, you may find that your joint checking account has extra funds after covering your expenses. Discuss together how to best use this money.

• Savings contributions. Put extra funds into a joint savings account or increase contributions to your emergency fund, which can provide financial security in case of unexpected expenses
• Debt management. If either partner has outstanding debts, consider using extra money to pay down high-interest debt. This may reduce stress related to debt management
• Fun budgeting. Allocate a portion for fun activities or short getaways, allowing both partners to enjoy the benefits of working together