Looking for a unique approach to solidify friendships? Consider opening a joint bank account. This strategy gained traction after Madison Machen overheard a fellow passenger on a flight to New York discussing her regular trips with her best friend, funded by their shared account.

“I loved the concept so much,I went home and I called my best friend and I was like,I think we need to do this,” Machen said.

Within six months, Machen, an Austin, Texas, resident, and her friend Kim had accumulated over $1,000 in their joint cash App account, with plans to celebrate their 20th anniversary in the south of France next May, according to Machen.

“It’s fun for us, becuase we can do little wagers, almost like a swear jar,” Machen said. “I’m training for a marathon right now, and one of my goals was, if I skip my long run, or if I skip any of my runs, I have to put in $5.”

Machen is among a growing number of TikTok users who have shared videos about how this savings method has positively impacted their friendships.

This trend contrasts with the increasing popularity of “Buy Now, Pay Later” options, which allow consumers to postpone payments. However, the Associated Press reported last month that BNPL loans can lead to repayment difficulties.

The Benefits of Financial Intimacy

Alyssa Davies, author of “Financial First Aid: Essential Tools for Confident, Secure Money Management,” suggests that practicing “financial intimacy” with friends can enhance relationships, especially since most people make financial decisions independently.

“it becomes a lot easier to spend intentionally when you have this accountability with people that you trust and love.”

“When we start to approach money in creative and fun ways like this, it makes money less intimidating, overwhelming, and there’s way more transparency,” said Davies, who goes by the username mixedupmoney on instagram. “it becomes a lot easier to spend intentionally when you have this accountability with people that you trust and love.”

Tori dunlap, known as herfirst100K, who provides financial tools for Gen Z and Millennial women, believes the popularity of joint accounts stems from consumers seeking spending flexibility.

“They don’t want to feel the pain of a big purchase all at once,” she said.

Potential Risks and How to Mitigate Them

However, some viewers have expressed concerns about the trend, questioning whether joint accounts could jeopardize friendships.

Dunlap believes that trust is the primary risk in such arrangements.

“Everyone on the account typically has equal access,which means one person could withdraw funds without permission,” she said. “If someone loses their job, goes through a breakup, or just changes their mind, it can get messy quickly.”

To avoid potential issues, Dunlap advises setting clear expectations through conversation or a written agreement.

“Agree ahead of time how much everyone’s putting in, how it’ll be used, and what happens if someone backs out,” she said.

Financial content creator Taylor Price, known as pricelesstay online, cautions that joint savings accounts can pose financial risks in addition to friendship challenges.

“Joint account holders are equally liable for overdrafts and fees,” she said. “If one person has credit issues, it could impact everyone’s banking relationship.”

Price advises against shared accounts, particularly with friends, and suggests using individual sinking funds rather. this involves regularly setting aside small amounts for future expenses.

“When it’s time to book, everyone pays their share from their own fund,” Price said. “You get the same result without risking your friendships or your money.”

Kim Brindell reports that a shared account has streamlined payments for flights, hotels, and meals for her friend group in Australia, eliminating conflicts over cost-splitting.

“Even with apps that track spending these days, this is another layer of ease, not having to think about grabbing your phone to note things down as you buy a round of drinks,” Brindell, who also posted about the trend on TikToksaid.

Her group started with automatic transfers of just $10 a week.

“We’ve now had a girls’ trip every year for three years, which is a first in our group, and most of us have been friends for more than 20 years,” she said. “It’s definitely made an impact in how we prioritize quality time together as friends.”