Learning how to manage money on your own can be a tricky task. And at some point, or another, we may eventually find ourselves needing to adjust our ideas on money management in order to fit the needs of two merging financial situations.
Just like anything, the way you handle money in a relationship can change over time. From figuring out who covers the cost of date night to planning how you’ll budget for a wedding, understanding how to approach money and avoiding financial stress is crucial. So, whether you’re just moving toward the financial part of your relationship or you’ve been trying to figure it out for a while, here are a few ways you can go about managing money with your partner.
Split shared bills by a percentage of each person’s income
A percentage of each person’s income goes toward paying joint bills. In this scenario, the person who makes more will pay a larger percentage of the bills, and the person who makes less, will pay less (e.g., if you earn 65% of the income, you pay 65% of the bills).
When trying to manage finances jointly, you may discover that there are huge differences in income. Which is why this is strategy is one that works for many couples.
Split responsibly for certain bills
In this method, each person takes responsibility for certain bills. For example, one person may be responsible for groceries, clothing and hygienic products – therefore they’d be in charge of covering 100% of these costs. Bills can be split in several different ways (e.g., larger bills can go to the person bringing in a higher income, groceries can be covered by the person who does the grocery shopping, etc.).
Combine finances, but each partner gets “fun” money
Whether or not a couple chooses to combine their finances or keep their money separate is completely up to them. After all, what works for one relationship, may not work for yours. But with this method, you can be sure to find a happy medium.
You’ll deposit your money into a joint account, but each party will have a separate account along with it to which they receive their own money that they can do with how they please. In this scenario, you’ll receive the benefits of combining your finances, but your “fun” money allows you the freedom to buy what you want.
Let’s face it, money can be complicated. And while no two couples manage their money in exactly the same way, we hope that reading about how some couples manage money, will inspire you and your partner to fine-tune your own system.