Creative Ways to Maintain Strong Friendships
One interesting suggestion for keeping friendships strong is the idea of setting up a joint bank account.
This concept came to Madison Machen during a conversation with her seatmate on a flight to New York last year. The woman mentioned that her trip was funded through a joint account with her best friend.
“I really liked the idea, so I called my best friend right away,” Machen shared.
Fast forward six months, Machen and her friend Kim, who live in Austin, have saved over $1,000 in their joint cash app account. They’re planning a trip to celebrate their Friendship Anniversary on May 20th next year, aiming for southern France, if all goes well.
“It’s fun for us because it feels like a commitment, almost like a vow,” Machen explained. “I’m currently training for a marathon, and I’ve set a personal goal: if I skip a long run, I owe $5.”
Machen is one of several TikTok users who gained attention by sharing how this money-saving approach can enhance friendships.
This trend provides a contrast to the rise of “buy now, pay later” techniques, which allow consumers to delay payments. However, such loans can lead to problems with repayments, as reported by the Associated Press last month.
In a time when many feel isolated, practicing “financial intimacy” with friends can help fortify these bonds.
“When you tackle money in a fun and creative way, it can be intimidating and overwhelming,” said Davies, who shares insights on Instagram under the name UmbyUpMoney. “Yet, having accountability with trusted friends can make it easier to spend wisely.”
Tori Dunlap, a content creator known as Herfirst100K, emphasized that joint accounts are becoming popular as people seek more flexibility in their spending.
“Nobody wants to feel the sting of a large purchase at once,” she noted.
However, some videos about this trend have sparked significant debate, with many people questioning whether shared accounts could jeopardize friendships.
Dunlap believes that trust is a major concern in such arrangements.
“Typically, everyone on the account has equal access, so one person can withdraw money without permission,” she pointed out. “If someone experiences a job loss or a breakup, things can get complicated.”
To dodge any potential issues, Dunlap suggests outlining clear expectations up front, whether through a conversation or a written agreement.
“Everyone should agree on how much to contribute, how the money will be used, and what happens if someone wants to back out,” she advised.
Taylor Price, who creates financial content as Pricelesstay Online, cautioned that not only is there a risk for friendships, but also for finances when opening a joint account with friends.
“Co-account holders share liability for overdrafts and fees,” she warned. “If one person has credit issues, it could negatively impact everyone involved.”
Price recommends being cautious with shared accounts, especially with friends, but suggests using individual sinking funds instead. This budgeting method involves regularly setting aside small amounts of money for future savings.
“When it’s time to book a trip, everyone can pay their share from their own fund,” Price explained. “You achieve the same goal without putting your friendship or finances on the line.”
Meanwhile, Kim Brindel mentioned that a shared account has helped her group of Australian friends manage expenses for travel, from flights to accommodations, while also minimizing disputes over money.
“Even using an app to track our spending makes things easier; you don’t have to constantly pull out your phone,” she said.
They kicked off their shared account by setting up automatic transfers of just $10 a week.
“We’ve been traveling together for three years, and most of us have been friends for over 20 years,” Brindel stated. “This is a first for our group, and it’s definitely changed how we prioritize our time together as friends.”
