Who should pay the bills in a marriage?

Many households today are categorized as double income earners, that is, both spouses earn money. In this inflationary environment, it makes sense then to contribute to the expenses. But how can one do that? Who should pay how much? While there’s no one right answer. Here’s a simple guide to help you start off the conversation with your partner.

50:50

A plain and simple strategy is to divide all expenses equally between partners. It makes household expense budgeting and planning easier. But it could get a little frustrating for the lower income earner who may find their income depleting faster.

DIVIDE IN PROPORTION TO INCOME

All expenses can be divided in proportion to the income earned by each one. This would help both spouses save money that is commensurate with their income levels. Let’s say if one spouse earns Rs. 1000 and the other earns Rs. 600, while household expense is Rs. 800. The higher earner will contribute Rs. 500 and the other, Rs. 300.

HOUSEHOLD BUDGET AND INDIVIDUAL BUDGET

Expenses are divided between common household expenses for example groceries, rent, utilities and personal expenses. Each spouse can pay for their respective personal expenses while the common household income can be shared. This could help each one get a better grip on their personal spendings and provide more flexibility to manage their budgets.

EXPENSE-HEADS

While one spouse could take care of the EMI bill, the other could pay for the school fees. The division could be discussed and arrived upon mutually.

Remember, these are just ideas. There is no rule book on how to share expenses except perhaps two - one, maintain budgets and two, communicate clearly. When you decide to split expenses, you must take financial decisions together as it impacts both. What’s more, if one spouse is laid off or decides to take a career break, the other one will have to be prepared to take on the load. Hence, communication is key.

The decision on how to share expenses must be arrived at together after careful planning and proper communication. And once you’ve arrived at that decision, consider having “money meetings” to keep track of how much has been spent, whether you both have stuck to your budgets and also to discuss whether your savings and investments are commensurate with your long term goals. Finally, remember to respect each other’s contribution to the household.

Mutual fund investments are subject to market risks, read all scheme related documents carefully.