Investing with checks and balances: Why managing personal finances should be a joint effort, and not solo work
First, many see money as a private, secretive thing. People do not discuss their incomes or wealth with others. There is his money, her money and our money accounts. Distinct confidentiality is maintained. Many old-school husbands do not let the wife know for fear of overspending or misallocation, among other reasons. Not trusting others with money matters is more common than not. Trust deficits foster money autocracy.
Second, ceding control, especially with money, is tough. While many agree that household financial decisions are best made jointly, that might be a theoretical position. The household’s money manager may offer information from time to time—I made so much in this mandate; this is the amount we saved on world trip tickets; this is how much it will cost to renovate, and so on. This sharing may create an illusion of transparency and participation. However, everyone else needs to seek centralised approval for large spending.
Third, many fear letting members of the household know about the actual state of finances. It could create demands that are tough to meet. Many parents do not let their adult children know about their wealth; adult children do not let their parents know what they earn and spend; siblings hide their wealth and income so that they are not called upon to bear a disproportionate share of common expenses. Many believe that keeping personal financial information private in the hands of one person is in the family’s interest.
Fourth, every household financial manager has his moments of
