Managing my money for young adults
Managing my money for young adults

This free course is available to start right now. Review the full course description and key learning outcomes and create an account and enrol if you want a free statement of participation.

Free course

Managing my money for young adults

4  Shared bills and a household bank account

Described image
Figure 3

Some shared households set up a separate bank account for settling the bills.

This can be very useful: each utility service and other essentials (gas, electricity, water, internet) is normally set up in the name of just one of the tenants, so a household bank account helps make sure everyone contributes fairly when it comes to paying the bills for these services.

The account can be used to settle these essential bills using through direct debits or standing orders. It can be also used to settle general household costs, for example cleaning materials.

It’s probably best not to use the household bank account as a way to settle the rental payments. Each housemate should settle these direct from their own accounts, given that each has entered into their own agreement with the landlord.

To pay for these outgoings each person in the shared tenancy would be required to pay in a monthly amount to cover their share of the joint costs.

At the end of the tenancy any funds left in the account can be shared between the tenants. If there are any shortfalls on the shared costs, make sure that the individuals concerned are chased and the money secured before people leave at the end of the year.

Ideally the household account should have at least two joint signatories, who can access details. This means that the responsibility of looking after the account is shared and there’s at least a second pair of eyes monitoring movements on the account.

Once the tenancy has ended and all sums of money into and out of the account have been resolved properly the direct debits and standing orders can be cancelled and the account closed.

Activity 4 A joint account – pros and cons

By signing in and enrolling on this course you can view and complete all activities within the course, track your progress in My OpenLearn. and when you have completed a course, you can download and print a free Statement of Participation - which you can use to demonstrate your learning.

Click on 'SIGN IN to enrol' to get started.

You can find out more about registering and OpenLearn in our FAQs.
MMMYA_1

Take your learning further

Making the decision to study can be a big step, which is why you'll want a trusted University. The Open University has over 40 years’ experience delivering flexible learning and 170,000 students are studying with us right now. Take a look at all Open University courses.

If you are new to university level study, find out more about the types of qualifications we offer, including our entry level Access courses and Certificates.

Not ready for University study then browse over 900 free courses on OpenLearn and sign up to our newsletter to hear about new free courses as they are released.

Every year, thousands of students decide to study with The Open University. With over 120 qualifications, we’ve got the right course for you.

Request an Open University prospectus