Husband/Wife contribution ratio???

Question

Wondering what is the common ratio of financial contribution in a marriage.....Is it reasonable to assume most working husbands and wives contribute 50/50??

Answer 1

Just going by general statistics there is still a gender gap in pay. Men are still making more than women overall, so it probably averages out that the man contributes more than 50%.

Answer 2

It could only really be 50/50 if husband and wife have equal pay. In our relationship, there have been times where my wife made more and times when I made more. At the moment I'm making significantly more than my wife, who has ended years of being a "stay-at-school mom" (that is, unpaid parent volunteer at our kids' school) to take on a part-time job as a teacher's aide. Because we are effectively a single financial entity for tax and legal purposes, we've always had a joint checking account, used for shared expenses like mortgage, insurance, utilities, groceries, and the like.

A more useful and powerful question about marital finances is how you SPEND the money. We've tried all kinds of methods in the past 27 years, and have come up with a method that really satisfies both of us and is providing good financial security for the future.

We have essentially three accounts -- "his, hers and ours." The bulk of my paycheck gets deposited into the "ours" account -- enough to cover the house payment, bills, groceries and other shared expenses like kids' clothes, yarn for the various knitters in the family, and the like. I manage this account through Quicken, which lets me not only track my expenses but also budget into the future -- I have all my planned expenses charted out through the end of February. Personal finance software plus online bill paying has provided us with a financial system that's indistinguishable from magic, compared to the old days.

The "his" and "hers" accounts, though, are what I really recommend for any couple. I have a small amount taken out of my paycheck and deposited into a second (free) account, with its own debit card. The money in there is purely discretionary -- I can use it to get stuff for my cars, take a friend to lunch, whatever I want. I also tend to use it for business travel but I get reimbursed for that; the point to this account is that I don't have to worry about the impact on the family budget, I don't have to track it alongside the household finances, and most important, I don't feel like I have to get "approval" to take out $20 if I'm heading downtown with friends.

Likewise, the "hers" account provides exactly the same feeling of independence and, for lack of a better word, "grownup-ness" to my wife. Last year she put her entire paycheck into this account, and it was usually within a few bucks of what I have put into the "his" account (she only worked a couple hours a day). This year her hours have been increased and we have a kid in college, so we may decide to use some of her salary to supplement the family account, depending on what extra needs our college kid has.

The final piece in the puzzle is that I contribute to my employer's 401(k) plan, having my contributions automatically deducted from my paycheck. This, I am convinced, is the only way to save -- not the 401(k) though it's a good vehicle, but the automatic deduction part. We tried saving money in the past through all kinds of methods, but what we found is that if money is in our checking account we will spend it. So taking it out first is the way to make sure you will get it into your savings. Pay yourself first, then work out your finances based on what's left.

Answer 3

Depends on the incomes. In my household my income is about triples that of my wife's income. Since we live a lifestyle based on both incomes, I contribute about 75% of the household bills. I imagine if we were closer in income we'd contribute equally.

Answer 4

Usually based on income. Income on your joint tax return can be broken down on tax software to see separate incomes. They are never 50/50 but if your incomes are close that is good enough.

Answer 5

no its no 50/50. suze orman has a calculation in her book, YFB. go get the book and look it up. if he makes 2,000 and you make 1000, 50% is not fair because he makes more. i think it's a percentage of your household expenses.