What are Shared Expenses? An Essential Guide
The essential guide for couples and flatmates navigating rising living costs across Europe
Why Shared Expenses Matter Today
Across Europe, millennials face the highest cost-of-living pressures in decades. Rent prices continue to climb in London, Amsterdam, Dublin, Copenhagen, Paris, Berlin, and Barcelona. Utilities fluctuate with energy markets. Broadband, subscriptions, and basics like groceries cost more than ever.
That’s why shared expenses — the costs people split in a shared home — have become essential to stress-free living. Whether you’re moving in with a partner or sharing a flat with a friend or a stranger, understanding shared expenses is key to creating fairness, stability, and peace in your home.
This guide explains exactly what counts as a shared expense, how to split them, what tools to use, and how to avoid the money conflicts many households face.
What Are Shared Expenses?
Shared expenses are the everyday living costs that couples or flatmates split because they benefit the whole household—such as rent, electricity, groceries, broadband, and streaming services. Dividing these costs fairly helps European millennials manage high living costs, reduce money stress, and keep shared homes transparent and balanced.
Common Shared Expenses in European Households
1. Housing Costs
For most millennials, rent is the biggest shared expense. Whether you’re in a London flatshare, a Berlin WG, or a Barcelona apartment, rent usually includes:
Monthly rent
Service charges
Council tax (UK) or municipal taxes (EU)
Home insurance (occasionally shared)
Maintenance fees
2. Utilities
Energy prices differ by country, but most households share:
Electricity
Heating (gas, electric, district heating)
Water
Waste collection
3. Household Essentials
Shared essentials typically include:
Groceries (shared food staples)
Cleaning products
Toilet paper, soap, detergents
Kitchen supplies
4. Shared Services
Most shared homes split:
Broadband / fibre
Streaming services (Netflix, Spotify, Disney+)
TV licence (where required)
5. Occasional Shared Costs
Furniture
Appliances
Repairs
Shared holidays
Moving-in items (pots, pans, cleaning gear)
How Couples Split Expenses
1. The 50/50 Split
Many couples prefer to divide costs evenly, so each partner pays half of rent, utilities, groceries, and subscriptions. For example, Anna and Marco in Berlin pay €1,200 rent, €100 electricity, €40 internet, and €400 groceries per month — meaning each contributes €870. This approach keeps budgeting simple and ensures fairness.
2. Income-Based Split
Some couples split expenses based on each partner’s income, so contributions reflect financial capacity. If Anna earns €3,000 and Marco €2,000 monthly, they might divide €1,200 rent proportionally: Anna €720, Marco €480, while other bills are adjusted similarly. This method balances fairness with each partner’s financial situation.
3. Category Method
Each partner takes full responsibility for specific types of expenses rather than splitting every bill. For example, in Copenhagen, Liv might pay the €1,300 monthly rent and €40 internet bill, while Jonas covers €120 electricity, €350 groceries, and €25 in streaming subscriptions. In total, Liv pays €1,340 and Jonas €495, so the couple may switch categories every few months or adjust assignments to keep things balanced. This approach reduces constant money transfers and creates a clear division of financial duties.
4. Shared Bank Accounts
Some couples choose to pool their shared costs through a joint bank account. Each partner transfers a fixed monthly amount—either 50:50 or based on income—into the account. For instance, if Sofia and Lukas in Vienna have €1,000 rent, €90 utilities, €50 internet, and €320 groceries (a total of €1,460), they might each contribute €730 per month. Alternatively, if Sofia earns €2,800 and Lukas €2,000, they could contribute proportionally—Sofia €820 and Lukas €640—while all shared expenses are paid directly from the joint account. This method increases transparency and reduces tracking of who paid what.
Comparison
The 50/50 and income-based splits can feel messy to track, the category method can become uneven over time, and shared bank accounts can feel too tied-in. Soon there will be one more choice. A shared prepaid card which cuts through all of this: partners decide how much to load—equally or based on income—and every shared expense comes from one transparent, limited pool. No chasing who paid what, no category imbalances, and no full financial merging. Just clarity, control, and fewer money talks. To stay updated on Partly app’s shared prepaid card launch — Join the waitlist.
How Flatmates Split Shared Expenses
1. Equal Split
Flatmates often share expenses equally for simplicity. Three roommates sharing €1,500 rent, €120 electricity, and €60 internet would each pay €500, €40, and €20 respectively. Groceries can also be split equally, making payments transparent and predictable.
2. Dedicated Bill Owners
Sometimes, one flatmate takes responsibility for a specific bill each month, rotating or fixed. For example, Sophie pays the electricity bill (€120), Jonathan pays the internet (€60), and Emma handles the water (€50). At month’s end, everyone reimburses their share to the bill owner, which simplifies payments and ensures accountability.
3. Room-Based Split
When bedrooms differ in size or amenities, rent can be divided based on the room each person occupies. In a €1,500 apartment, the largest room might cost €700, a medium €500, and the smallest €300. Utilities and groceries can still be split equally or proportionally. This method ensures fairness by linking cost to the value of each room.
A Smarter Way to Share Costs
Each method works, but they all face the same challenge: someone usually pays first. Sure, with an equal split you could collect everyone’s share upfront— but keeping track, coordinating transfers, and ensuring no one forgets quickly becomes tedious. A shared prepaid card for two flatmates solves it effortlessly. Everyone loads their portion in advance, all expenses come from one central pot, and the household runs smoothly—no reminders, no IOUs, no one covering for anyone else. Clean, fair, and stress-free. Learn more about the Partly app, the app for sharing expenses with a shared virtual prepaid card.
How to Avoid Conflict Over Shared Expenses
Clear rules and communication prevent disputes. Agree upfront on which expenses are shared and how they will be tracked. Using apps, spreadsheets, or shared accounts or even better a shared prepaid card helps transparency, while regular check-ins allow adjustments if someone’s financial situation changes, keeping living arrangements harmonious.
What is NOT a Shared Expense?
Personal toiletries & cosmetics
Individual food + snacks
Clothing
Gym memberships
Personal subscriptions
Hobbies
Solo travel
Conclusion:
Managing shared expenses is not just about splitting bills - it's about creating fairness, reducing stress and building a stable shared home environment. With the right structure, tools and communication, European Millenials can navigate rising living costs with ease and confidence.
Shared budgeting can become easier with the right approach — find out more on how a shared prepaid card can make living together and managing expenses simpler, fairer, and effortlessly modern. If you are interested in learning more on the differences between shared prepaid card and joint account read our article here.