Love & Money
Deciding who pays what
Money isn't the most romantic subject, but if you're considering living together, you need to address it. Details like how to split the rent and who pays what bills can strain any relationship. Make sure you're both clear on how you'll share expenses from the beginning to avoid conflict later.
There's no one right way to handle your finances together. It depends on your income, your individual style and your goals. The important thing is to talk about it and come up with a plan that works for both of you, and the sooner the better.
Here are some important money matters to consider before you move in so that you both feel everything is fair.
- How stable is your income? Are you both able to handle your share?
- Discuss the way you each spend money. Is one of you a saver and the other a spender?
- If you have already established a credit history, pull credit reports for each of you.
- If one of you has considerable debt, such as student loans, talk about how this could impact other financial obligations.
- When renting a place, make sure you're both on the lease so that you share the responsibility for your living space.
- Keep your credit cards separate. Your credit card debt is your own.
- How will you handle large purchases like furniture? Will you each pitch in, or will one of you make the purchase and then keep the item if you ever split up?
- How will you split the rent? Fifty-fifty is simplest. But, if one of you makes more money, you could consider paying a percentage of the rent according to your income.
- Who pays the monthly bills? You could share them equally. Or you could each be responsible for certain bills.
- What about groceries and everyday needs? You could take turns buying or put some money into a communal pot each week to take care of the necessities.