Younger couples more likely to keep finances separate. Can it build stronger relationships?

Can separate financial accounts keep couples together?

A new Fidelity survey suggests many Gen Z couples think keeping their finances separate can be the secret to a happier relationship.

Researchers asked more than 3,100 people how they manage money in marriages and long-term relationships.

Thirty-four percent of Gen Zers said they keep their finances completely separate. 

Millennials, GenXers, and Boomers were less likely to do the same. By comparison, just 15 percent of Boomers kept money in "completely" separate accounts.  More than half of Boomer couples said they keep all money in joint accounts, compared to Gen Zers, who polled at less than 30 percent. 

The hybrid approach also seemed popular.

That's separate accounts, but with at least one joint fund for shared expenses.

Fidelity found that more than four in ten Millennials choose that option, the most of all other generational groups surveyed.

Financial imbalances are a frequent part of most relationships, the same study found. Fifty-eight percent of couples admit there are not equal contributions to household finances, and almost a quarter of those admit it affects the relationship.

So, what's the best approach?

Fidelity offers these pros and cons:

• When finances are totally separate, each person may have more control of their own money
• A possible downside, splitting expenses fairly takes ongoing effort.
• The hybrid model offers flexibility and a dedicated pool for shared bills, but it requires strong budgeting skills to determine how each person should contribute.
• And for couples who fully combine finances, tracking money can be simpler, and estate planning may be easier.

However, differences in spending habits can create tension, especially if one partner starts with significantly more debt.

No matter the age-- communication is key.