Asked on 29 Nov 2018
Assuming they plan to have a baby in three years time
Having a joint account is good and the best would be to do an automated giro into the account and enforce that monthly contribution and commitment too. One mistake that many make is the contribution amount remains the same over a 100 years... haha needs to increase with your salary ok... you cant be saving 100 a month at 20 and still be saving 100 a month in your 30s and 40s
In my line of work, I have met many young couples who have this ideology in mind " WE MUST MAKE SURE THAT WE SAVE ENOUGH TO HAVE CHILDREN". Trust me you never know when is enough and you never know for sure if when that little bundle of joy will bestow upon you guys. Becoming a father myself, my wife and I realised that we really didnt know that there is so much to parenting and the recurring cost involved. But then again, we are lucky because we stick closely to the 6-9 month emergency fund rule and also do not spend excessively on branded stuff.
Therefore, as long as a couple you are not overspending beyond your means always ensuring that you have 6-9 months of emergency fund and adequately covered by with medical plans and life plans you are good to go.
What I did when I was younger and has more cash in savings I took up a 5 year saving premium with 15 year maturity (children education) mind you that I didnt have a kid then and who knows if you ever gonna have a kid, but saving more can never be wrong right?. (Yes, I know investment could have yield much more. Yes investment are liquid. futhermore you work as banker) but that's not the point. What I want to achieve with this is to finish saving this part of my goal when i didnt have that much committment and carry on with other goals that I will in the future. Since we are just two and there are still some spare cash to save. WHY NOT?
Still unsure? look me up and we can chat and discuss more.
They should sit down, list down all potential expenditures and discuss how are they going to split the cost. Having a joint account or not is a personal choice, some may prefer having one since it'll be equal contribution by both partners. Others may not want that since the other partner is earning significantly lesser, unable to play equal role financially.