Me and My Money

Transferring Advisors, Joint Bank Accounts, Overdrafts & Payday

Posted November 25, 2011
Originally Published October 23, 2008

Q:

I have just recently married and my husband’s twin brother is a financial advisor. My husband wants me to move my RRSP ($53,000) and my non-registered investment account ($29,000) to him I really don’t want to do this because I am comfortable with the advisor in the bank and I would prefer not to make any big changes. My husband and his family see this as a betrayal and I am wondering if I should just give in for the sake of harmony. Malika P

A:

This one has a super simple answer. No! I believe in following your gut when it comes to money and if something makes you uncomfortable don’t do it. I suggest you sit down with your husband and tell him kindly, but in no uncertain terms, that you intend to leave your money, underscore your, where and how it is currently invested. If you feel mentioning something to his brother is a courtesy then fine, but don’t be apologetic. You worked hard for your money so you get to be the decider. If his family brings up this issue then brush it off airily with a laughing comment like, “I’m just too chicken to move my money!”

Q:

What is your opinion of joint bank accounts for people who have moved in together? My partner and I have 9 accounts between the two of us, each for a different purpose. I am a little nervous. Sharing someone’s bed is less scary than sharing bank accounts. She is completely okay with it and I think she is starting to feel I don’t trust her. Michael P.

A:

You’ve answer your own question. You said you were nervous, so don’t go there, just yet. Try a halfway measure. Figure out your joint expenses; things like rent, utilities, etc., then open a joint account and you each deposit your share into it with an automatic transfer monthly from your personal account. This way your partner sees you coming forward with something positive, instead of showing her your nerves which she is interpreting as a trust issue.

Q:
I am married with two children under the age of five. I work full time as a receptionist and I bring in 3,072.30 a month. My husband is in school and receives an allowance of $1,000.00 which pays for the rent of $687.00. I have four bills that come out of my chequing account totaling $770.23. Daycare cost of $152.12. I pay the $31.00 minimum balance on my maxed out credit card each month. I pay a cell phone charge of approximately $100.00 a month for two cell phones (mine and my husband’s). So, all together for one month I pay $1,053.35. But, the balance in my account is -$495.00. I have an overdraft of $500.00. To make things worse I’ve been taking out payday loans from two companies for my own pleasure. I know I need to budget my money but I can’t seem to get started in the right direction. Lori S.

A:
You have a problem … but you also have the solution in hand. With your detailed list of fixed expenses you have the beginnings of a budget and a spending awareness. Now for the next step.

First, define pleasure. Is the payday loan money going to clothes, eating out, lottery tickets? Investigate yourself and ask exactly how much pleasure you are getting versus the pain and guilt of no savings.

Second, your budget needs to include things like food! Download the budget template at www.wnetwork.com, go to shows, Maxed Out and then financial tools. When you fill it in, I suspect you will be able to top up your minimum credit card payments by $200 or more.

Third, enlist your husband to help you put the spending brakes on and keep you away from the loan sharks. When you feel the temptation, call him or a girlfriend, your mother, anyone to help talk you out of it. Now, give yourself a shake and get on with it. You can do it.

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