How to share Credit Card 50/50 with partner
Hi there, I haven't been able to find an answer to my specific situation. My boyfriend and I live together and have a joint credit card. We use it for any expense that we split 50-50, from eating out together to travel expenses. Aside from YNAB, it's been working great. However, I haven't been able to figure out how to implement this card into the budget. Since we use it for so many types of things, I'd like to be able to categorize each charge.
He pays the card once a week or so, and I send him a Venmo charge for my half. I can log in to the account for the card and see all of the charges. I tried adding the card as an account in YNAB and manually entering half of each transaction, but it has proven confusing. I'm thinking of just removing the card as an account, and when I make my half of the payment to my boyfriend via Venmo, then using that charge as a split transaction to categorize my half of each charge that payment covered.
Any thoughts or advice on this?
Hi Hot Pink Gazelle !
There are a number of ways you can handle that shared credit card. No matter what you decide, when you add it to your budget, you'll want to add the actual account balance. Even if the balance is $500 and you only owe $250 of that, include the full $500. It's easier to accurately track the transactions so you can compare them to your bank statement, rather than altering them and trying to piece things together later.
Have you considered Joining Forces with your boyfriend and including him on the budget? We believe the couple that budgets together, stays together! :)
If not, you can create a "Boyfriend's Half" category and enter all of the credit card transactions as Split Transactions - half to your different categories and half to "Boyfriend's Half".
For instance, let's say you buy $100 worth of Groceries on the credit card. You'd enter the transaction as a split - $50 towards your Grocery category and $50 towards "Boyfriend's Half". You'll budget for your Groceries and let the Boyfriend's Half category remain overspent. When it comes time to pay the bill, you'll enter your payment to the credit card as a transfer (from your checking account to the credit card). Your boyfriend's payment will import as an Inflow directly on the credit card and you'll categorize it as Inflow: To Be Budgeted (that will update the credit card balance without adding or subtracting funds from other areas in your budget).
I know that's a bit tricky, so if you have any questions just let me know! :)Reply
I have a question along these lines: my husband and I have a joint checking account and a joint credit card. Most shared expenses are paid on the joint credit card, which is then paid out of the joint checking account, to which we both contribute from our individual checking accounts. How should I categorize/split joint expenses on the joint credit card? If I create a "Husband's Half" category, how do I correctly categorize the payments of the credit card so that my budget still works?Reply