Many people are in a shared house with their friends when they are starting a career, it’s a great way to save money and make friends. A share house can be quite fun. But one of the less fun parts of sharing a house is managing your household spending.  This is where having a debit card dedicated to the household bills and rent can be a good idea.

Getting a joint debit card with an attached bank account could be a convenient way to manage your household budget. The good thing with a debit card as opposed to a credit card is that a debit card does not let you borrow money or pay later. You can only spend what you have in your account.

The benefits of a share house debit card

A shared debit card for your share house can make things more easier and organised. Here’s some advantages of a share card:

Convenience
You won’t have to worry about carrying cash to pay for bills, groceries or rent. You’ll simply use your debit card online or in-store. You can also set up direct debits or automatic transfers to pay for recurring expenses, such as rent, utilities and internet.

Transparency
With this kind of setup, you’ll be able to easily track your spending and see how much money is left in your account. As it’s a shared account, all the transaction history will be shared with your housemates to show how much you all have contributed to the costs. This can help you avoid disputes and misunderstandings about money matters.

Security
You can’t get stolen cash back. But if your debit card is lost or stolen, you can report it to your bank and cancel it immediately. You can also use the security features such as PINs, passwords and biometrics to prevent unauthorised access to your account.

Budgeting
You and your house mates will be able to set a limit on how much you can spend with your debit card. This helps you all manage the money better and avoid overspending or overdrawing your account. You can also use apps or tools to plan your budget and track your progress.

The benefits of a share house debit card

We’ve seen how a debit card for a shared house can be a convenient way to manage household expenses, but it also comes with some potential challenges or drawbacks. Let’s take a deeper look.

Trust issues
If you do share a debit card with your housemates, you really need to trust them to use it responsibly and not overspend or make unauthorised purchases. You also need to trust them to keep the card and the PIN safe and not share them with anyone else. If someone misuses the card or loses it, you could be liable for the charges or the fraud.

Disputes
Sharing a debit card can also lead to disputes among housemates over how much each person should contribute to the account, what expenses are covered by the card, and how to split the fees and charges. You all might have different opinions or preferences about how to budget, save, and spend money. You might also have different income levels or financial situations that affect your ability to pay your share. These differences can cause conflicts and resentment if not resolved properly.

Fees and fraud
Depending on the type of debit card and account you choose, you might have to pay fees for using the card, such as monthly account fees, transaction fees, ATM fees, or foreign currency conversion fees. You should shop around and look for a no annual fee debit card. These fees can add up and reduce your savings. You also need to be aware of the risk of fraud and identity theft if your card and PIN is stolen or compromised. You should check your account statements regularly and report any suspicious or unauthorised transactions as soon as possible.

It has often been the case that people have put their money into a common bank account and withdrawn cash to pay for expenses.  This can have a problem when there is too much cash that is taken out.  There can often be suspicion over very small sums, although these sums can add up.

Tips for your shared house debit card

So you’ve decided you’re going to pool some of your money with your housemates and get a debit card for your share house. Here’s some practical tips on how to use a debit card for a shared house effectively:

• – Set ground rules with your flatmates. Before you get a debit card, agree with your flatmates on how to use it. Set clear usage rules, such as only using it only for rent, bills and groceries. You should also agree on how to split the costs and how often to check the balance and transactions.
• – Track your expenses. All housemates should keep track of your expenses with the debit card. This is especially important to avoid overspending or overdrawing your account. You can use online banking, mobile apps or budgeting tools to monitor your spending and see where your money is going. Set up alerts or notifications to remind you of your balance and upcoming payments.
• – Choose the right card and bank. Not all debit cards and banks are the same. You should compare different options and find the one that suits your needs and preferences. Look for a card that has no monthly fees, low ATM fees, cashback rewards or other features. You might also look for a bank that has convenient branches, ATMs or online services in your area.
• – Be careful with security. A debit card is a convenient and safe way to pay for things, but you should also be careful with security. You should protect your card and PIN from theft or fraud, and report any lost or stolen cards immediately. You should also review your statements regularly and report any suspicious or unauthorised transactions as soon as possible.

A handy tool but comes with caution

Having a debit card for a shared house sure can be a convenient and practical way to manage your ongoing household expenses. It can help you avoid cash handling, track your spending, and split bills easily. But you should also be aware of the potential risks and challenges of sharing a debit card with others, namely security issues, disputes, and fees.

It is important to choose a reputable bank, set clear rules and boundaries with your housemates, and monitor your account regularly. By doing so, you can enjoy the benefits of a debit card without compromising your financial well-being.