Shared Expense

A shared expense is a cost that benefits more than one person and is therefore managed or divided between multiple people.

Shared expenses are common in households, relationships, families, roommate arrangements, and group activities.

Examples of shared expenses

Common shared expenses include:

Rent or mortgage payments.
Utility bills.
Internet.
Groceries.
Household supplies.
Streaming subscriptions.
Travel costs.
Restaurant meals.

How shared expenses are divided

People can divide shared expenses in different ways:

Equally.
Based on income.
Based on usage.
Using custom agreements.

The best approach depends on the situation and the preferences of the people involved.

Shared expense vs. personal expense

A shared expense benefits multiple people.

A personal expense benefits only one person.

For example:

A household internet bill is usually a shared expense.
A personal gym membership is usually a personal expense.