Sharing Finances? Here Are 5 Ways to Do It Right
Joint lives? Joint account?
Photo: Retha Ferguson for Pexels
In April of 1975, Judy Hendren Mello created the First Women’s Bank in Manhattan.
It was the first bank in the United States to be run by and operated for women, during a period where women were highly discriminated against by banks. (Fun fact: Betty Friedan had an account there.) Just one year prior, banks required single, widowed, or divorced women to bring a man to co-sign any credit application, regardless of their income.
Thankfully, much has changed since then, and more women are household breadwinners than ever before, as well as finding ways to to split costs with their partners. Given that wedding season is rapidly approaching, we figured there’s no better time to break down five different approaches to sharing finances that have worked well for couples.
The 2:1 Approach
This is a scenario in which you keep most of your finances separate, but have one joint account you both contribute to equally.
You can choose to contribute a dollar amount or a percentage of monthly earnings to that account. With one joint account, you are taking baby steps to trusting your significant other with your money. You get to see how they spend and if you’re comfortable giving them purchasing power with your hard earned cash.
Most often, couples who live together and are fairly evenly matched when it comes to income and debt favor this approach. That way the joint account is what you use for household purchases—everything from toilet paper to a new couch.
The Solo Dolo
Some couples keep all finances separate, and it works for them. If each of you are financially independent, have no desire to share finances and would rather split household expenses in a way that makes you the most comfortable, this is an easy option.
Sometimes that means splitting things 50-50. Sometimes that’s not the case. If it’s not, we suggest having a conversation, especially if one side of the equation makes a significant amount more. What you don’t want is to commit to a living or a financial situation where you feel taken advantage of, or where you resent how much the other person is making and contributing.
If you really like keeping everything solo, but your incomes are vastly disparate—we suggest the next approach to avoid future disagreements.
The Pick-and-Choose
This approach is best for couples who share everything, except comparable salaries. When you don’t want to let one person “handle it all” (which, is certainly another way to go), but rather want each party to contributing their “fair share,” each person picks certain bills and expenses.
These don’t have to be equal shares.
For instance, if you own a house together, one person pays the mortgage and the other fills the fridge. Or perhaps, one of you pays the rent and the other handles electric, gas, and the WiFi situation.
This works for both unmarried and married couples. The most important part of this arrangement, is that each person is getting a fair shake, not a shake down.
With the pick-and-choose, and all the above options, individual debts remain the responsibility of the indebted, however, this could (and often should) be considered when splitting up costs.
The Spend One, Save One
This is an interesting approach being taken by couples who have not yet made those major life purchases, but are working toward them.
They will live on one salary—typically the larger—and save the entirety of the rest. This is also a useful approach for couples who haven’t yet been able to put away that rainy day money or save for retirement. It typically involves living below your means, but is a smart investment to make in your future.
The Merge It All
This is an approach most often used by married couples who combine their lives, finances and all, entirely. Most often, neither party is entering into the marriage with significant assets—like a house—as this is a purchase that will be made together. Or debts, like student loans, that need to pay off.
However, even within “merge it all” it isn’t uncommon for couples to share one joint account while keeping individual checking accounts. What you put into those individual accounts? It varies. Bonuses or checks from grandma and grandpa could be considered “fun” individual money. Cash that doesn’t have to go toward life expenses and allows each person to feel like they’ve got some disposable income.
This post was published on May 23, 2017, and has since been updated.
Making Moves: Promotions, App Upgrades, and Calling Out Inequality
Women are speaking up this week.
Every Friday, we here at C&C like to celebrate all of the moves women are making in their industries. And as always, this was a good week for women. Read on to see women getting promotions, speaking up against inequality and discrimination, and more!
Sylvia Rhone has been promoted from president to chairman and CEO of Epic Records. In this position, she will have control over the label’s creative direction and management of the label. Rhone was the the first African American woman to be the chairman of a major record company when she was made chairman and CEO of Warner Music Group's Elektra Entertainment Group in 1994. That’s music to our ears!
Abigail Disney, the granddaughter of Walt Disney, called out the Disney Company for contributing to economic inequality in the US. She called Disney CEO Bob Igar’s $65.7m salary in 2018 as “insane” and noted that the lowest-paid company employees only make $15 an hour. Way to speak up, girl!
No filter necessary. Bumble is beginning to develop an AI-enhanced “private detector,” which will screen unsolicited nude photos sent through the app. Bumble CEO and founder Whitney Wolfe Herd and Bumble’s parent company founder Andrey Andreev are working together to make the internet a safer and friendlier space for women.
Way to call out workplace discrimination! Former CBS executive Whitney Davis recently published a letter in Variety detailing the discriminatory and toxic culture present within CBS. She details the racism she personally experienced, as well as racist comments spoken about other people of color. Davis attributes the network’s toxic environment to its “white problem,” and it bringing awareness to the systemic racism present in the entertainment industry.
Sign on the dotted line. Michelle Obama, the Reach Higher Initiative, and Better Make Room are hosting a College Signing Day on Wednesday, May 1st. The Reach Higher Initiative was started by Obama to encourage more high school students to pursue a college education. The event itself will have a multitude of celebrity guests and performances.
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Making Moves: First Female CEOs, TED Talks, & Record-Breaking Films
Another week, another batch of inspiring women.
Every Friday, we here at C&C like to celebrate all of the incredible contributions women are making in the world. And as always, this was a good week for women. Read on to see women being featured in film festivals, moving up in business, and more!
Activist, writer, and educator Brittany Packnett gave her first TED Talk ever this week. The subject of the talk: confidence! Packnett says she has been working her whole life for this moment, speaking at the event TED2019: Bigger Than Us in Vancouver on April 16th.
She’s moving on up! Corie Barry, the current CFO of Best Buy, will become the company’s first-ever female CEO. Barry will become one of the few CEOs to head an S&P 500 Company and will officially take the role this June. Talk about being a boss!
“What, like it’s hard?” Kim Kardashian West is taking a page out of Elle Woods’s book and is planning to become a lawyer. KKW informed Vogue that she’s been studying law for the past year as part of a four-year apprenticeship available for those who did not attend law school. She is scheduled to take the bar exam in 2022 and credits her work helping Alice Marie Johnson get out of prison for this new endeavor.
Lights, camera, more female representation! This week, the Cannes film festival revealed its official selection of films to be screened this year. The News? They’ve tied their record for the most films directed by women to be considered for jury prizes, with four. More female directors are to be featured as well, with 13 of the 51 directors being women. To top it all off, the official poster (above) was made as an homage to female filmmaker Agnès Varda.
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Making Moves: Directorial Debuts, Helping the Homeless, & Advances in Science
Women are helping science, film, and each other this week.
Every Friday, we here at C&C like to celebrate all of the great contributions women are making in the world. Read on to see what women are doing in film, science, their communities, and more!
Get ready to laugh! On Thursday, Netflix dropped the trailer for its next big female-led film: Wine Country. The film will be powerhouse comedian Amy Poehler’s directorial debut and will be released to the site on May 10th.
This week, the first picture of a black hole was released. The source of the photo? An algorithm created by MIT graduate student Katie Bouman. Bouman, who studied computer science and electrical engineering, led the team that created the new algorithm three years ago. High fives for women in STEM!
Creativity, style, and beauty have no age limit. Professor, blogger, and model Lyn Slater is starring in GoDaddy’s newest ad campaign. The 65-year-old creator of Accidental Icon will soon be featured on GoDaddy’s television, social media, and event advertisements.
You get a show, and you get a show! It was announced this week that Oprah will be joining forces with Prince Harry and Apple to create and executive produce a series centered around mental health. The series will be available to stream in 2020 and will aim to fight the stigma surrounding mental health around the world.
Female students at Carmel High School came together this week to collect roughly 6000 pads and tampons for women unable to purchase them themselves. The group of students, led by Clementine Chamberlain, has been working all year to gather sanitary products for homeless and low-income women. Every Tuesday should be Tampon Tuesday!
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Making Moves: Award Noms, Podcast Premieres, & Best-Selling Books
Celebrate and learn about the women making moves this week.
Every Friday, we here at C&C like to highlight the best news stories of the week that celebrate women and all of the incredible things they’re doing. Read on for improvements in cancer screenings, well-deserved award nominations, and a brand new podcast!
Shout out to Sandra Oh! Her show Killing Eve received the most BAFTA nominations, coming in at 14 total. Sandra and her co-star Jodie Comer are both up for best actress. Congrats ladies!
Your life is about to get a lot simpler. Lauren Conrad just announced that she will be launching her own weekly podcast. The podcast will be called “Asking for a Friend” and will center around Lauren talking with a specialist from industries like beauty, design, and much more.
Former First Lady turned best-selling author—talk about a hustle! Michelle Obama’s memoir Becoming is currently on track to be the best-selling memoir of all time. Becoming was the most sold book in all of 2018, with over 10 million copies sold.
Time to make some changes. The FDA recently proposed that all mammogram providers will be required to notify women with dense breast tissue that they may possibly need additional testing. This would be the first update to mammogram testing in over 20 years.
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Making Moves: Pop Stars in Politics, Networking Retreats, & Talk Show Trades
The first person on Mars? Most likely a woman.
Each Friday, we highlight five news stories that celebrate women and their impressive accomplishments. Read on for badass networking retreats, women in space, and a new female talk show host!
Ariana Grande is saying, “Thank U, next!” to unregistered voters. The pop sensation started the #ThankUNextGen initiative which allows fans to register to vote at her concerts during the Sweetener tour, as well as through texting.
Networking just went next-level. The company Baddies and Bosses recently announced a retreat for black millennial women in sunny Cancun, Mexico. The retreat will focus on building meaningful relationships in the workplace.
The saying goes that men are from Mars, but it looks like a woman will be there first. The head of NASA recently spilled on a podcast that they are working hard to make sure a female astronaut is the first to step foot on the neighboring planet.
Get ready to stay up late! YouTube star Lilly Singh will be taking over Carson Daly’s late-night NBC talk show, making her the only female late-night talk show host on a Big 4 network. You go girl!
Making moves and making money! The career pathing platform and startup Landit recently closed at $13 million in Series A funding. The company was co-founded by Lisa Skeet Tatum and Sheila Marcelo—two women of color—and works to increase the success of women in the workplace.
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Making Moves: Female Football Players, Women Astronauts, & Brand New Barbies
Great news for girls everywhere!
The first full week of International Women’s Month has not disappointed! Celebrate International Women’s Day with us and read on to learn how women are crushing it this week in football, film, and outer space.
College student Toni Harris became the first woman to sign a letter of intent to attend a university on a full football scholarship. The 22-year-old defensive back dreams of becoming the first woman to play in the NFL and proving that it’s great to play like a girl.
One giant step for womankind: NASA astronauts Anne McClain and Christina Koch will be participating in the first ever all-female spacewalk. They’re scheduled to head out to space on March 29th, a great way to celebrate the end of International Women’s Month!
Where are all the women? New York City announced that it will add four statues of influential women in an attempt to combat the gender gap present in public art. The women to be memorialized include jazz singer Billie Holiday and pediatrician and activist Dr. Helen Rodríguez Trías.
Girl power for generations to come! Mattel is releasing a Barbie doll of activist, model, and Gurls Talk founder Adwoah Aboah. The doll will be part of Mattel’s “Shero” program, which highlights influential women like Ibtihaj Muhammad and Laurie Hernandez.
IMBDPro and the ReFrame coalition of industry leaders released a list of 20 films from 2018’s top 100 box office movies that are certified as gender-balanced productions. The list includes Crazy Rich Asians, The Hate U Give, and The Favourite. ReFrame hopes its data will celebrate and promote the films in Hollywood that have just as many women working on them as men.
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Making Moves: Award Noms, New Funding, & Netflix Pickups
These ladies are makin’ moves!
This week was a doozy for women in business! Below, we’re sharing big deals, award noms, and pre-seed funding secured by badass ladies who know what they want and aren’t afraid to go for it. Check ‘em out below!
Girls’ Night In, our favorite self-care newsletter by #createcultivate100 alum Alisha Ramos, has raised a pre-seed round of $500,000!
Netflix has picked up the “momedy” sitcom Workin' Moms by Black-ish star Catherine Reitman. The series, which has aired on the CBC network in Canada since Jan. 2017, follows four 30-something women in a mommies' group as they juggle work, home, and love.
CEO Katrina Lake’s wildly-successful personal styling box Stitch Fix was featured in the #5 spot on Fast Company’s Most Innovative Companies list this week. The company generated $1.2 billion in its fiscal 2018.
Li Li Leung, currently vice president of the NBA, has been named president and CEO of USA Gymnastics. Formerly a college gymnast at the University of Michigan, and the sport’s crisis with Larry Nassar compelled her to step into the role.
Minyon Moore, Donna Brazile, Yolanda Caraway, and Leah Daughtry, authors of For Colored Girls Who Have Considered Politics, have been nominated for an NAACP Image Award. The book gives a behind-the-scenes look at the authors’ 30+ years working in politics.
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Making Moves: New Books, Award Noms, & Netflix Movie Magic
These women are changing the game this week and beyond.
Wanna know the women who are making big moves in business this week? We’re here to make it happen. Every Friday from here on out, we’ll be sharing a list of badass women who have reached envy-inducing goals, from award nominations to development deals and everything in between. This week, we celebrate artists, editors, authors, and entrepreneurs who are making moves and takin’ names. Check ‘em out below!
Our own #createcultivate100 honoree Libby VanderPloeg was nominated for a Shorty Award for her “We Got This (Lift Each Other Up)” GIF. Watch Gina Rodriguez talk about Libby’s internet-famous GIF at last year’s #createcultivateATX.
Create & Cultivate alumni speaker & former Teen Vogue editor Elaine Welteroth dropped the cover for her new book More Than Enough: Claiming Space For Who You Are.
Amy Nelson’s co-working space The Riveter just announced five new office locations: Dallas, Denver, Portland, Atlanta, and Minneapolis.
Julia Collins, the first black woman to co-found a company valued at $1 billion or more, was featured alongside some other fabulous black female entrepreneurs who are changing Silicon Valley. Meet the new guard.
Illustrator Liz Fosslien released her first book, No Hard Feelings: Emotions at Work and How They Help Us Succeed, on Tuesday.
Do you remember the 2017 Fast Company story about Penelope Gazin and Kate Dwyer, two business owners who had to invent a male cofounder to be taken seriously? Their story is being made into a Netflix film, Lady Business, starring Brie Larson.
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