How To Split Household Expenses

Learning how to split household expenses can be one of the toughest things when you first start living with another person. Whether the person is your roommate or your spouse, each working adult will likely contribute to the household bills. With some planning you can successfully split household expenses.

  1. List all of the bills you will split. These will include mortgage or rent payments, utilities, phone bills, Internet and the cable bill. Write out the monthly total of joint household expenses.
  2. Decide if each person will contribute an equal amount. Take a look at each person's income. Someone that makes more than the others living in the house will have more they can contribute to the household expenses.  The equal amount method works best for roommates. Married couples will benefit from contributing a set percentage of their paycheck toward the household bills.
  3. Determine who will collect the money and send in the payments. The most financially responsible person in the house should split the household expenses and collect the bill money. He or she should collect money on a weekly basis so that the other roommates or spouse doesn’t spend it on something else.
  4. Set up a bill pay account for the split household expenses. It is fairly simple to set up automatic bill payment from a checking account. Deposit enough money in the bank account before scheduling payments. Married couples can have a joint account for their bill pay account. Roommates should be provided with proof that each bill has been paid for the month.

Resources:

Financial tips for young unmarried couples

College Life: Splitting Finances with Roommates

 

 

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