Money Can Buy Happiness: Why married couples who combine finances stay together longer

It is widely believed that every marriage ties their financial fortunes together. However, only some people decide to pool their money as well. Marriages between co-financiers may last longer, according to a study from Indiana University’s Kelley School of Business. According to the research, couples who combine their bank, credit card, and investment accounts are happier over the long run and discover that sharing resources makes it easier to reach traditional financial milestones like buying home and retirement savings. Let’s take a closer look at the study. Also read: Couples that sleep apart stay together? Sleep divorce, the new social media trend, explained Money can sustain love and marriage Earlier studies claimed couples who combine their finances are likely to be happier than those who do not. However, this is the first study to demonstrate a direct link that married couples with joint bank accounts not only have better relationships but also dispute less over money. They also have greater confidence in the management of household finances. The study examined whether relationship quality improved over time in a six-wave longitudinal instance when engaged or newlywed couples were randomly assigned to combine their finances in a joint bank account. Couples assigned to integrate money in a joint account demonstrated the normative fall in relationship quality over the first two years of marriage, in contrast to couples assigned to a no-intervention condition or to keep their money in separate accounts. Various factors can affect how bank account structure affects relationship quality. The research is detailed in an article titled Common Cents: Bank Account Structure and Couples’ Relationship Dynamics, which will be published in the Journal of Consumer Research. Jenny Olson, assistant professor of marketing at Kelley said, “When we surveyed people of varying relationship lengths, those who had merged accounts reported higher levels of communality within their marriage compared to people with separate accounts, or even those who partially merged their finances. They frequently told us they felt more like they were ‘in this together’." “This is the best evidence that we have to date for a question that shapes couples’ futures; and the fact that we observe these meaningful shifts over two years, I think it’s a pretty powerful testament to the benefits of merging. On average, merging should warrant a conversation with your partner, given the effects that we’re seeing here,” she added. Also read: Divorced woman seeks refund from wedding photographer 4 years after marriage The “we” perspective According to Olson, combining encourages stronger financial goal alignment, transparency, and a shared view of marriage. Couples who were advised to open joint bank accounts reported much superior relationship quality two years later than those who kept separate accounts. “A communal relationship is one where partners respond to each other’s needs because there’s a need. ‘I want to help you because you need it. I’m not keeping track,’” she said. “There’s a ‘we’ perspective, which we theorised would be related to a joint bank account.” Also read: From walking out of abusive marriage to owning business; this woman's life will inspire you The “you and I” model Couples with separate accounts, according to Olson, see financial decision-making as more of an exchange. “It’s ‘I help you because you’re going to help me later,’” she said. “They’re prepaying for later favours, and that’s tit-for-tat, which we see a bit more with separate accounts. It’s ‘I’ve got the Netflix bill and you pay the doctor…’ They’re not working together like those with joint accounts — who have the same pool of money — and that’s more common in business-type relationships.” Couples may feel that it is simpler to end a marriage if they have separate accounts, according to Olson. Twenty per cent of the couples who took part in the study dropped out, including a sizable portion of those who broke up after refusing to merge their bank accounts. The results showed no gender differences. Also read: Same-sex marriage: Impossible to list constitution bench matters unless time rationed, says Supreme Court Methodology of the study 230 couples who were either engaged or newly married at the time were selected by Olson and her co-authors, and they followed them for two years as they started their married lives. Everyone agreed to potentially modify their financial arrangements and had separate accounts at the start of the trial. For everyone who participated in the study, this was their first union. Then, couples were given the option to form a combined bank account at random or to keep their individual bank accounts. A third group was allowed to make the choice on their own The participants’ average age was 28. Twelve per cent were Black people, and 75 per cent were white. A bachelor’s degree was held by 36 per cent of those with a $50,000 (~Rs 40 lakh) median household income. The average length of time that couples had known one another and been romantically linked was roughly five years. 10 per cent of people had kids. The study was co-authored by Scott I Rick, associate professor of marketing at the Ross School of Business at the University of Michigan; Deborah A Small, the Adrian C. Israel Professor of Marketing at the Yale School of Management; and Eli J Finkel, professor of management and organizations at the Kellogg School of Management and a professor of psychology at Northwestern. With inputs from agencies Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.