Advice Wanted: Creating a Joint Couples Account to Pay for Groceries

NipVikingSando on 17/11/2020 - 08:16

Hi Ozbargains!

Am hopeful you'll be able to give me some advice here.

I've recently moved in with my partner, and incidentally we're now looking to split household expenses evenly. Up until now we had just been operating under a 'your turn, my turn' system with groceries (i.e. "you got the last big shop so now it's my turn") though obviously not all shops are equal, and between smaller grocery runs and purchasing other amenities its been challenging to keep expenses fair and even; this is further compounded by the fact that I earn more than my partner and we'd both like to be contributing proportionate to our income as is fair.

My partner and I are contemplating opening a Groceries account together and using it effectively as a kitty, whereby we'd both keep it topped up (e.g. she'd put in $100 a week, I'd put in $150), which we'd then both have access to and cards for it. Consequently, wondering whether any have any suggestions which bank or system would be the most seamless for such a practice, and if there are any potential ramifications of doing so?

Thanks!

Financial

Comments

  • sahh on 17/11/2020 - 08:27
    +6

    We did the same when we first moved in together, we opened a free ING account and would top it up periodically, it worked quite well.

    Only cons would be the credit card benefits e.g. points, insurance etc.

    • abb on 17/11/2020 - 11:08
      +4

      Pay on your credit card, then BPAY the shared expenses portion of the bill from the shared account.
      It is a little more accounting work.

  • Meho2026 on 17/11/2020 - 08:32
    +9

    A lot of people dont understand why some couples have separate money so be prepared to cop some flack.
    What we do is put an equal amount into a joint account every pay day, PayID into the account.
    We earn about the same so its a bit different to you.
    We use that money for groceries and other household expenses.
    We put a lot more in than we need to and use the extra cumulative amounts for buying anything for the house that needs replaced like a new fridge etc and to pay for our holidays.
    If we have a night out, really get out of control and get bill shock at the end, then we use that money too.
    We use a NAB transaction account cos there is no monthly fee or minimum deposit amount and they have ApplePay.
    I use my point earning credit card to pay for a lot of things then just transfer the money out of the joint account.

  • ChocStrawberries on 17/11/2020 - 08:43
    +12

    My husband and I are always being bagged out for this, but we have separate accounts (have since we got together almost 16 years ago) and just pay half of everything. We put savings against the mortgage, and use that for purchases for the house, and travel (those were the days!) and meanwhile it's paying off our mortgage if we don't touch it. All of our bills and food shopping get split down the middle, but since he earns more than me, if there are purchases that he wants that I can't afford this pay, he'll just buy them. One benefit in keeping separate accounts is that we both like to surprise each other with gifts (Christmas, birthdays, "just because") and couldn't do that if the other person could see our transaction history easily! We can both access each others' accounts if we really wanted to (before the cries of "having an affair!" start!), but we just don't. We were both very independent when we first met, and kept our accounts out of habit more than anything, but it's worked well for us this long, we don't see a reason to change it. :)

    I should add: my husband pays for all expenses (bills, food shopping, major purchases) using his credit card, since he gets reward points on his, and I just transfer him half. We use the reward points to get fuel vouchers. We have an Excel spreadsheet to keep track of our budgets and savings, which means that almost every month, our cards are paid down to $0 balance, and we don't end up spending beyond our means. It's not hard to keep on top of your money, as long as you keep track of what you're spending - those little things all add up!

  • John Kimble on 17/11/2020 - 08:44
    +2

    Why not a joint credit card (for rewards as sahh mentioned eg Coles or Woolies) and then you could each pay off that?

    Otherwise, if you will deposit more than $2000 a month you get $100 on sign up and 2% off pay wave at HSBC (max $50 a month).

    https://www.hsbc.com.au/accounts/products/everyday-global/

    • tomsco on 17/11/2020 - 09:00
      +6

      Why not a joint credit card

      Just a little more on this, while I think this is a good idea (for the benefits mentioned), but just wanted to highlight a credit card is not a joint account.

      It is applied for under one persons name (and therefore affects that persons credit file/that person is responsible if things go south).

      The second person is just a supplementary person on the account. The primary cardholder is liable for any of their spending.

      Not that I'm saying this will happen to the OP, but just want to make it clear.

      I quite like Meho2026's suggestion if you're not quite at the state of the relationship to share a credit card account. You can each have your own, and just transfer the joint expenses from the joint account to pay off the purchases from the credit card.

  • BigBirdy on 17/11/2020 - 08:45
    +1

    All the major, and most minor banks would be fine for this. Open a joint account, and setup a periodic auto transfer into it from your respective personal accounts. Easy way is a debit card for each of you, credit cards are a little more complex but also okay. Make sure you both have access to monitor balance, top-up, etc (ie Internet banking App). I use ANZ, no fees, detailed statement, works well.

  • Hardlyworkin on 17/11/2020 - 09:14

    How about if you have a joint account though use your own credit card to actually pay for the groceries. It does add a step of needing to transfer money from the joint account to your credit card. All depends how much credit card points and any other benefits mean to you.

    My partner and I have been doing the your turn my turn thing though this probably makes more sense.

  • dazweeja on 17/11/2020 - 10:01
    +3

    The other option is to use a free app like Splitwise and both enter any joint expenses. Then reconcile whenever, eg. end of each month. Also handy for keeping track of expenses.

    • ambe101 on 17/11/2020 - 13:15

      My partner and I use Splitwise and haven't had any major issues. Started using it when I had a housemate and just continued using it when we moved in together. Usually everything is split 50/50 as we have similar incomes, but it does have the functionality to split in various fashions if required. We have a couple different groups to help differentiate, track and control our spending - apartment (rent, utilities), daily spend (groceries, eating out) and major holidays (e.g. 20xx Europe). Mobile app is pretty good too.

      However, both parties need to be willing to use it somewhat regularly. A lump-sum dump of expenses once every 4 months is not appreciated.

      • MIKEPICKARD on 20/11/2020 - 10:11
        -1

        Yeah, we tried Splitwise, it didn't work.
        I just ended up resenting being reminded each month of how much she owed me (…and rising).

  • follow on 17/11/2020 - 10:33

    macqaurie would be the best for this, if just using domestically.

  • skinner on 17/11/2020 - 10:40
    +1

    We work similar with a main joint account (all household expenses, mortgage payments etc) and our own separate personal accounts. We keep a bit for personal spending and the rest goes in the joint account. It gives us both some money we can spend on what we want and not feel guilty and also not questioning the other on how much x cost. No complaints, I think it works quite well.

    We used to get bagged out by friends for not just having one joint account. These are the same people that constantly complain about their partner "spending too much on x", or having to come up with complex methods to hide how much they spent on the pokies that weekend.

  • tsunamisurfer on 17/11/2020 - 11:01

    This joint account for expenses is harmless.

    But as the person who earns more, always always keep your money separate from the other person.

    • AustriaBargain on 17/11/2020 - 11:14
      +2

      Even after you've been married for 10 years, apparently on OZB. Reminds me of The Truman Show where the actress playing Truman's wife kept her fingers crossed during the ceremony photo at their wedding. Keeping a separate life from your SO just in case the marriage ends is a self fulfilling prophecy imo. What if your SO didn't have their fingers crossed and did completely devote their lives to your partnership?

      • tsunamisurfer on 17/11/2020 - 11:27

        I understand your position and it has merit.

        However I don’t think I keep a separate life at all, I pay most of the expenses, I contribute the largest portions of large expenditures like Car and House.

        So my resources go towards taking care of the family’s requirements, see…I am invested.

        However, any excess is mine and is invested to cover should anything happen.

        • AustriaBargain on 17/11/2020 - 11:55
          +3

          Did you still say "for richer and poorer" in your vows?

          • tsunamisurfer on 17/11/2020 - 12:19

            @AustriaBargain: That is within the confines of the relationship.

            Should that relationship dissolve, I want to be prepared to remain the former and not become the latter.

            Everyone goes into a relationship 100% thinking it will last forever, the harsh reality is that is true for 60% of such couplings.

            You can be in a relationship, cherish the relationship and hope it works out and be prepared otherwise without compromising it.

            • AustriaBargain on 17/11/2020 - 12:21
              +2

              @tsunamisurfer: Better hope your SO doesn't inherit millions and holds the same policy, if the marriage isn't for richer or for poorer. Would kinda sting seeing them live the easy life with someone else who was willing to commit totally, like being hoisted by your own petard.

            • MrFrugalSpend on 17/11/2020 - 22:33
              +1

              @tsunamisurfer: hate to be the bearer of bad news to all you people in this convo writing it as though "keeping my money in a separate account will protect me if things go south,,,", I have/earn more etc… yeah… not really. If you are moving in with someone as a couple, de facto on a genuine domestic basis, they are entitled to claim part of your assets after like 6 months - 2 years depending on jurisdiction / other indicative rules etc regardless.

              It may help short term, and feel safer in trying to argue you are not de facto as not fully committed to one another… but in time, it won't matter.

          • Xistn on 17/11/2020 - 13:48

            @AustriaBargain: Fingers must of been crossed XD

    • avoidfullprice on 17/11/2020 - 11:17

      Edit: meant to post this under main thread.

      any suggestions which bank or system would be the most seamless for such a practice

      Pick a bank with PayID and no account, BPay and other transaction fee. https://www.notion.so/7d612d9c52d4479785d4237cb8bd772a

      If you consider home loan together later, could pick a bank that provides OpenBanking. Big 4 has an earlier deadline. NAB meets that criteria

      if there are any potential ramifications of doing so?

      Keep personal expenses from each other, or you risk having an argument like "you spent so much on ozbargain!!!"

  • Seraphin7 on 17/11/2020 - 11:11

    Any basic and fee free transaction account you can open in joint names with two debit cards hanging off it. Without giving it great thought, I'd probably favour ING or Macquarie.

  • hasselbladsnapper on 17/11/2020 - 12:21

    We use a ME Bank debit card and each month top up from our CBA / NAB personal bank accounts. This works very well - no fees.

  • Koipanda on 17/11/2020 - 12:31

    TBH, working from a migration legal point of view, a joint account is the best thing that a couple can have. Spend everything on that account makes your sponsor stronger.

  • bongom on 17/11/2020 - 13:07
    +1

    Shouldn't you be paying with discount gift cards? e.g. You could both have the Woolworths app on mobile and pay using the same account?

  • Antz on 17/11/2020 - 13:55

    Having been divorced, I’m all for separate bank accounts now but have considered joint account for joint expenses with my current partner. So far for us we take turns in our groceries and actually go through the receipts to work out our expenditure (doesn’t take too long). We do a shop each week and pay for our own personal items and share the joint stuff, and work out what we owe each other. we have a running total which also takes into account all other expenditure such as eating out. It works for us but I’m sure we won’t be doing this forever. If I have money left over in my budget, I’ll send him some funds to decrease the running total (if I owe him money). I don’t know if that makes sense. It works this way because I tend to buy less for myself these days (in order to save some money) whereas he tends to buy more expensive personal items than I do.

    Otherwise he pays all the bills and I schedule every month to send him my half. This includes rent. It works because I set and forget, and I have my own bills savings account I top up every pay check. Otherwise we pay for our own stuff like hair cut, petrol, any insurances not joint etc.

  • whooah1979 on 17/11/2020 - 14:11
    -2

    Men pay bills and women cook or is that to old school?

    • Jugganautx on 17/11/2020 - 15:05

      You don't see men moving into their womans houses that often. 🤷‍♂️

  • [Deactivated] on 17/11/2020 - 17:08
    -1

    this is further compounded by the fact that I earn more than my partner and we'd both like to be contributing proportionate to our income as is fair

    Why? What happened to equality? How little they earn is their problem, not yours to subsidise.

  • Tee Rex Arms on 17/11/2020 - 20:14
    +1

    Do you send your partner an invoice after each root?

    • avoidfullprice on 18/11/2020 - 00:36
      +1

      Afterpay with 4 equal installments

  • [Deactivated] on 17/11/2020 - 20:45

    My wife would just let me know how much my share was back when were dating and I’d just transfer it over, she liked collecting credit card points to save money. Wasn’t a complex exercise I offered to do it but she was happy to. These days it’s all joint.

  • JIMB0 on 17/11/2020 - 21:27
    +4

    Are you two going halves in a baby?

    • [Deactivated] on 17/11/2020 - 21:57

      Considering they're smart enough to split expenses instead of pooling all their money, they're probably also smart enough not to do that.

  • chrisharry53 on 18/11/2020 - 08:00

    Get a HSBC joint account and you get 2% cashback on all tap and pay purchases. Better than CC points in my opinion. You need to deposit $2k a month but it doesn’t need to stay in the account.

  • abcdefghi on 18/11/2020 - 08:27
    +2

    My (now ex) husband and I decided to implement some of the Barefoot Investor steps, and set up 5 bank accounts together:

    1. Rent, household expenses (power, hot water, internet)
    2. Splurge … which might be movies, going out to dinner, takeaway, anything that's not necessary, but feels good
    3. Smile … for us, it was saving for the European honeymoon we didn't have
    4. Fire Extinguisher … for unexpected expenses, like fixing the car
    5. Groceries

    We went with ME bank and got cards for accounts 2 and 5. We decided to contribute an equal amount each week to each account and then either of us could go shopping for groceries independently. Splurge was great for a date night.

    • Sunshines bright on 18/11/2020 - 09:20

      We have done similar but for different reasons. My partner hates spending any money, I on the other hand do not mind. We both make similar pay and to keep him happy I pay for everything, until I run out of funds. I know his money is my money in the end but with multiple joint accounts it appears that I am only spending "my" funds when I use the account designated to me with much of my pay going into it. We do have 2 separate savings accounts which are not joint accounts for peace of mind.
      So we have 5 accounts

      1. A joint account set up to receive all our pay/funds coming in and to transfer out to our other accounts.
      2. MIne (joint but he does not touch it!)
      3. His (joint but I do not touch it!)
      4. My savings - NOT joint
      5. His Savings - NOT joint
  • HeWhoKnows on 18/11/2020 - 10:54
    -1

    If OP is going to be counting "pennies" from now just pull out of the relationship
    Its going to end badly the way its going for sure.

    Relationships are about love and sharing.
    They are about giving and accepting.
    They are about helping each other.

    They are NOT about EQUAL SHARING of expenses or anything else.

    Sorry OP but you have a very bad attitude when it comes to relationships.
    You need to chill out and just stay with the "your turn, my turn" if it makes your partner happy.

    • Traveller107 on 26/11/2020 - 20:34
      +1

      Not sure why people negged you..plenty truth in your comment.

  • OzHunterNSW on 18/11/2020 - 11:54
    -1

    Sound as though someone is keeping control of finances which equates to a form of abuse.

  • Choc83 on 19/11/2020 - 10:09

    We both have our own money/assets from before we met.

    My investment property, shares - in my name
    Hers - same

    We bought the house together. Split the loan. My savings in one offset, hers in the other. Works well, although I do know that's technically shared funds.

    Shared account - we both chuck in $100/week (auto transfer) for regular stuff like groceries. If there are larger expenses like household bills we both top up the account. One person pays on their points earning credit card and reimburses themselves from the shared account.

    No kids yet, but the pets are funded out of the shared account as well.

  • Pangtheob on 19/11/2020 - 19:55
    +1

    We’ve been doing this for 8 years- we each add $1500 a month into a shared NAB account that pays for rent, food, car, etc.

    The key thing is to ensure that all the non-discretionary bills (rent, utilities, insurance) are timed to come out of your joint account a few days after your funds go in. That way it’s set-and-forget: when the money runs out at the end of the month, you can just cut back on frivolities.

    it’s AWESOME- we have never had a fight about money, we both feel we’re contributing fairly, and we can both do whatever we want with what is left of our paycheques.

    I don’t think the points are worth double shuffling the money through a credit card. Even at $36k/year the points are prob worth <$300. A small price to pay for relationship zen.

  • Pro-crastinator on 26/11/2020 - 01:50
    +1

    But who eats more!? You should weigh your meals and then adjust your contribution accordingly, taking into account any differences in income and correct as a percentage.

    However, there will also be wear and tear on either vehicle used to pick up the groceries… so an adjustment will need to be made for servicing vehicles and petrol…

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