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Learning how to split bills as a couple will make your life much easier and will prevent various money disagreements with your other half.
But as you’ll be aware, talking about money with your partner isn’t always straightforward, and it can lead to fallouts and disagreements if you don’t approach the conversation with the right mindset.
When talking about splitting bills with your partner, you need to have an open mind and a clear understanding of your own finances; for example, the 50-30-20 budgeting rule can help you with this ahead of a conversation with your partner.
So, read on to find out how to split bills as a couple to avoid disagreements and to put your combined income to good use.
Splitting bills as a couple
If you’re wondering how you split bills with a partner, you need to know there are different ways to go about it. One of the most important things is your respective incomes, as it might not be viable to split the bills right down the middle if one of you earns considerably more than the other.
Whether you’re married or living with your partner, it makes sense to have a conversation about splitting the bills as early as possible, ensuring that you both know where you stand. When living with someone else, you can consider splitting your bills in the following ways:
Split all bills 50/50
The easiest way to split your payment responsibilities is to draw a line down the middle; each is responsible for half of the bill payments.
It’s helpful to create a joint account to pay your bills, and you can contribute an equal amount of money every month to cover the costs. Our split-the-bill feature can help you equally divide your expenses with your spouse and enables you to automate the process.
While splitting all bills 50/50 is straightforward, it’s only really a good idea if you and your partner earn similar amounts. However, if your monthly earnings are considerably different to your partners, it is worth reviewing the split.
Spilt all bills based on income
Rather than splitting the bills down the middle, another option is to divide your bills based on your respective incomes. This is a better option if you earn much more or much less than your partner, as it allows you to contribute a reasonable proportion to household expenses relative to your income.
To split your bills based on income, you can perform the following calculations:
Step 1
· Partner A’s income/ Total of both incomes x 100 = Partner A’s percentage of household income.
· Partner B’s income/ Total of both incomes x 100 = Partner B’s percentage of household income
Step 2
· Total shared monthly expenses x Partner A’s percentage = how much Partner A contributes per month
· Total shared monthly expenses x Partner B’s percentage = how much Partner B contributes per month
Example: 60/40 split
But what does this calculation look like in practice? Well, assuming that you and your partner agree on a 60/40 split, here is what your monthly bill contributions would look like:
Partner A makes £42,000 per year
Partner B makes £63,000 per year
Shared expenses add up to £2,500 per month
Step 1
· £42,000/£105,000 x 100 = 40% contribution for Partner A
· £63,000/£105,000 x 100 = 60% contribution for Partner B
Step 2
· £2,500 x 40% = £1,000 monthly contribution for Partner A
· £2,500 x 60% = £1,500 monthly contribution for Partner B
You can use this formula to calculate your combined expenses and to split your bills with your partner based on your respective incomes.
One person pays the bills
Depending on your living and earning arrangements, it might make sense for one person to pay all of the bills. Perhaps you and your partner have decided that one of you is responsible for working while the other is responsible for managing the house and looking after your child.
If this is the case, it makes sense for the person responsible for working to pay all of the bills.
Even if you and your partner work, you might agree that one person is responsible for all the bills to make life easier. The other person might then contribute a specific amount to a joint savings account, which you could turn to for a family holiday or investing.
The key thing to remember is that different things work for other couples, and there’s no right or wrong way to split the bills – you need to settle on an arrangement that works for you.
Our expense sharing feature enables you to request money from your partner via the app, making things easier when you split specific costs down the middle. You can also use our savings jars to meet your targets, which is an excellent option if you and your partner decide to save money for a specific purpose, like a holiday or a house deposit.
Try apps for couples
As most people manage their finances on their smartphones via internet banking, it makes sense to use apps to improve how you split your expenses with your partner.
Several apps you can turn to will help you split your bills with your partner, including HyperJar.
HyperJar is a perfect app for couples, as it makes saving money so much easier, as well as splitting payments and managing income. You can also set various payment controls and earn rewards using HyperJar, which helps improve your overall budgeting and lets you save money in different ways.
Communicate
Being open and honest is so important when talking to your partner about money. You also need to communicate regularly to keep the dialogue open and ensure that you can resolve any disputes or disagreements around household budgeting.
It helps to set a specific day and time each month to discuss your finances, particularly if you’re committed to splitting your bills in the long term. You also need to be open with your partner if your financial circumstances change so that you can adjust your bill payments accordingly.
Conclusion: How to split bills as a couple
Learning how to split bills as a couple removes a lot of the stress out of managing your joint finances and lets you put your combined income to good use throughout the year.
Be sure to consider our prepaid card to help you manage your money more efficiently, and turn to HyperJar for different ways to control your finances.
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