ManaWGOpen the appThe flat-share household kitty: three options
Loo roll, cleaning products, dishwasher tablets: small items add up and cause friction. A shared kitty can solve that, as long as it is clear how it is run. This guide covers the three usual ways with their pros and cons, a worked example and the rules that should apply whichever you choose.
By Abubakar Abditube (ManaWG) · Published · Updated
What belongs in the household kitty
Before you discuss the form, settle the content. Typical items are things everyone uses up: loo roll, washing-up liquid, cleaning products, bin bags, light bulbs, spices and staples such as oil, salt or coffee, if you share those. Private groceries, toiletries and things for your own room do not belong in it. Bigger purchases such as a vacuum cleaner are better kept separate, because when someone moves out it is unclear who owns the appliance.
Option 1: a cash tin
Everyone pays a fixed amount into a tin every month, and shared shopping is paid from it. It is easy to see and needs no technology. In practice it quickly gets messy: receipts go missing, nobody knows the balance, someone without cash pays out of pocket and forgets, and whoever moves out wants their share of what is left. If you choose this way, keep a cash book and count the tin together once a month.
Option 2: a joint account
An account that everyone pays into by standing order is transparent, because every transaction is visible. But someone has to open it, run it and answer for it, and many banks charge fees. If the account is in one person’s name, they carry the risk if others do not pay. When people in the flat change often, managing access gets tedious too.
Option 3: record expenses and settle up
Instead of holding money, everyone pays for what is missing and records the amount, for example straight after shopping (see organising flat shopping). At the end of the month the balances show who owes whom. How to settle open balances fairly is covered in debts between flatmates. There is no pot for anyone to manage, and nobody is permanently out of pocket. In ManaWG’s shared expenses you split equally or with individual amounts per person, give each expense a category and see where the money goes. The app suggests settlements with few transfers. You transfer the money yourselves and mark it as paid. If you have been using Splitwise or Splid, bring the old data across with the CSV import, see Switching from Splitwise or Splid.
Worked example
A flat share of three spends €90 a month on shared shopping. Anna pays €30 for cleaning products, Ben €51 for the big shop and Cem €9 for bin bags. Each share is €30. Anna is even, Ben has paid €21 too much and Cem €21 too little. A single transfer from Cem to Ben settles everything. With a cash tin or an account, three payments in and three payments out would have been needed.
Rules for any kitty
Decide what belongs in it and what does not. Set a limit above which you ask first, for example €30 or €50. Choose a fixed day for settling up, such as the first of the month. And agree what happens when someone moves out: open amounts are settled before they leave, and shared purchases either stay in the flat or are bought out. In ManaWG a monthly statement arrives by email at the start of the month with totals per category and the transfer suggestions. Anyone can switch it off.
Frequently asked questions
How much should go into the household kitty each month?
It depends on your needs. Add up your actual shared spending over three months and divide by the number of flatmates and months. With the settle-up approach there is no fixed payment in.
What happens to the kitty when someone moves out?
Open amounts should be settled before they leave. With a cash tin or an account, the person gets their share of the balance. With recorded expenses, it is enough to bring the balance to zero.
Is there an app for a household kitty?
Yes. ManaWG is free, has no ads, works in English and German and shows balances and settlement suggestions.
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