‘My Gen Z friends are sharing a bank account. Should I, too?’

A growing number of Gen Z individuals are opting to share bank accounts with their close friends. The practice, which began as a way to pool money for emergencies and maintain a sense of connection to college days, has gained traction among younger generations. However, the concept raises numerous questions regarding trust, finances, and potential pitfalls.

Shivam Agarwal, one of the friends who started sharing a bank account, explained that he has full control over the account, adding and withdrawing money as he pleases. His friend, Bageshri Banerjee, started the account as an emergency fund and admitted that the arrangement helps them feel more connected to each other. Other examples include Bachat Gat, a popular concept in Maharashtra where women save a fixed amount of money each month for mutual support, and similar arrangements among homemakers and women with limited income sources.

Experts suggest that while shared bank accounts can be convenient, they must come with clear expectations and transparent communication. Rahul Banerjee from PGP Academy advises that before creating a joint account, individuals should discuss their reasons for pooling money, each person's responsibilities, and how they will maintain accountability.

Furthermore, he emphasizes that shared money should not replace personal financial independence and that the primary goal should be fostering trust and responsibility among friends.