While many people wonder how many credit cards you need, another important question to ask yourself is how many bank accounts you ought to have as a single or family. Is there an ideal number? The short answer is no, although there are smart guidelines to follow throughout adulthood and into retirement.

Life Stage Investing

As you enter life stages, you will likely find that your financial needs change, which means that it can be in your best interests to open a certain bank account or close another one. For example, when you get married, you and your partner might decide to open a joint bank account for your shared financial goals.

While some couples choose to keep separate accounts, others form a single joint account. Thus, you might have 3 accounts in your household after getting married if you keep your separate ones and have a joint one. There is no right or wrong answer to how many to have, although how you organize them matters a lot.

Have Regular Financial Discussions as a Couple

To help you and your spouse determine what’s best, and how many bank accounts to have, regularly engage in financial conversations. Ask relevant questions, such as what approach to make if you invest and how to pay off any debt amassed while alone or together.

Essentially, you two will create a financial plan that clarifies how many bank accounts are best for your family. When you review this plan yearly, you two will have a good idea of how best to spend or budget money.

Guidelines to Keep in Mind

To help you as a single adult or half of a couple, with or without kids, to figure out your bank accounts, these guidelines from HerMoney can be useful. In general, most adults are fine to use a single transaction account and a separate savings account.

With that said, there are many good reasons to open another savings account (or two). Firstly, you can dedicate an account to toward upgrades and financial payments for your existing home. Or, you might have an account specifically for charitable donations.

If you own a business, you would benefit from opening a separate account for it so that your personal finances do not overlap with professional ones. When you expand, consider separating financials into one transaction and one savings account. That way, you can easily keep cash reserves for the business separate from the operational budget.

Finally, if you are a spender rather than a saver, then the chances are good that you spend what is in your transaction account as quickly as you get it. If so, consider opening several savings accounts, with each one dedicated to certain yearly expenses. If you would prefer a simpler approach, though, at least have one transaction and one savings account, with money going into the savings account for emergencies.

Final Thoughts on Bank Accounts

If you’re looking for set rules about how many bank accounts to have, it’s clear now that there are suggestable guidelines, but there is no set number. Furthermore, it’s essential to understand the different types of accounts, and how to make the most use of them, rather than looking solely at the number.

Tell us in the comments section below how you did at answering these 3 questions. Did you answer them correctly? Or could you use some help in understanding one or more of the areas, such as investing or budgeting?

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The information contained within this site has been provided as general information only and prepared without taking into account your financial position, objectives, and needs. You should consider its appropriateness and seek financial advice before making any financial decisions.