How much should we each pay into joint account?

[Userrrr1234]

If you are very fixed in your views that all money should go into one bank account this may not be the thread for you!

I’m back to work soon after ten months on maternity leave. I will be earning £42000 and I think the take home pay is around £2400.

Nursery is £800 a month and the mortgage is £1000. They are the main shared costs.

I was thinking £1400 leaving me with £1000 for me. Does that sound fair?

I think you should have the same amount left over, whatever that means for splitting the bills.

That probably wouldn’t work as DP earns double!

What is your goal - same contribution, same % contribution, same spends after contribution?

Doesn’t take into account whether you both have joint savings goals above day to day expenses, or whether you are seeking to have similar % or amount pension contributions etc

I don’t think there is a goal other than fairness really.

If he earns double why would you be paying the majority of the main bills?

Are all your out goings from the joint account?
We do that and just split it 50/50

Add up your total shared expenses, including childcare, and then split proportionately by what you earn so you are each paying your share.

We do this, I earn quite a bit more than my partner though so tend to pay more towards joint ‘extra’ expenses like holidays and theatre trips etc, as he doesn’t have as much spare after the joint living expenses are paid.

Yet fairness can be debated “I earn more therefore it’s fair I have more spends at the end of the month” etc

You could go with 1) same amount for personal spends after joint contributions and other joint savings efforts or
2) same % although this gives the benefit to the higher earner in terms of absolute spends

What feels fair to you?

No we don’t have a joint account at present.

£1400 wouldn’t be the majority of the main bills. So £500 (mortgage) and £400 (nursery) comes to £900.

The remaining £500 includes council tax, electricity, internet, grocery shop, gym (family membership) and so on.

Probably 2 as 1 puts me at an unfair advantage pitter

Mortgage & Nursery may be the main shared costs but you also need to factor in:

• council tax
• house insurance
• utilities
• food
• clothes for children
• activities for children
• any other expenses for children, always
• holidays

I'd look at total shared costs (so excl true personal costs) and see what the figures would be for:

• equal payment by each of you
• payment by each proportional to earnings
• payment by each so have same amount left over

and try to come to an arrangement.

Things to think about:

• is your career impacted by having a child (or more)
• is his career enhanced by your job having more flexibility
• make sure pension payments are made

An equal percentage-75% of both your net goes into the joint acct, you both keep 25% for spending money (adjust as required to cover outgoings).
If there’s structural inequality-eg you’ve lost income potential for maternity etc-then tweak until it feels equitable.

The problem with that approach is that I would end up with more spending money than DP which isn’t fair really.

Figure out how much your total monthly expenses are. If your dh earns twice as much as you, he pays 2/3 of that and you pay 1/3.

Your take come pay will be give or take £5, £2600. So there's an extra 200 from what you were thinking in your op.

Remember to add a bit extra on top of your budget for things like dc's clothes and shoes, nursery presents, birthday presents for friend's birthdays, extras at nursery, days out, etc. You would be surprised how quickly it adds up.

@Userrrr1234 your income and expenditures are fairly similar to mine. DH and I both put in around £900 per month and that covers all bills plus mortgage.

I've just seen it is a DP not a DH. That makes it important you ensure you are fair to yourself and don't let your career get impacted.

I should say actually that we don't pay out nursery fees!!

Add up your take home plus your so's take home. Remove all costs including food, saving for a holiday/new roof/car breakdown etc. Whatever is left over divide by two. That's the amount each of you has for their own spending money. The difference between take home and spending money is what goes into a shared bill account.

Add everything up...

What is your total household take home pay?
List all household expenses... all bills, car payments, childcare costs etc
Open a joint savings account is you can

Then work out a fair split of bills plus something into savings (if you can) that leaves you both with the same disposable income.

That's the way we work and it's completely transparent and fair

Yes, @titchy said it better than me!

OP. As a matter of interest, how have you been funding your maternity leave? Were you paying half despite being on reduced income, or has your DP covered things? (It always makes me worried for the future if the woman has covered all 'her' costs despite having a shared baby.)

You also have to ask the question, why does DP earn more? Is it because of degree, training, or field? Or is it because you are taking maternity leave and choosing a job that allows for flexibility or makes you available to the family in some way?

I don't really understand. If your'e so worried that he might have less spending money when he earns so much more, the proportional approach works. Yes, he pays a higher percentage of the total household bills but he would still have more spending money. eg

Post tax etc your earnings are, respectively (made up for ease of calculation demonstration) £2000 and £4000 (ie £6000).

Combined, let's say that all household expenses including mortgage, nursery, food, utilities, entertainment, kids needs etc come to £3000. He earns double what you do so should pay double ie he'd pay £2000 and you'd pay £1000.

This would still leave him with the same proportionately higher discretionary spending money in that he'd have £2000 and you'd have £1000.

It's often the women who worry about what's "fair" so please also make sure that this is properly split. Because I've seen too many women who go for this option but then are using their (reduced) discretionary spend on clothes for the DC or to pay for trips out with the DC. Or, in one memorable situation, for fertility treatment.