A study by US financial services company Bread Financial found that 26% of people felt 'financially incompatible' with their friends, while 21% said they had lost a friendship because of money. Income disparity can strain friendships, especially when splitting bills for meals or holidays.
Money coach Talia Loderick says the wealth gap between friends is something more people should be mindful of. 'It’s so easy to let friendships fall by the wayside because we’re so awkward and money’s so emotional,' she notes.
When dining out, a survey by Compare the Market found that 34% of diners think a bill should be split evenly including the tip, while 36% say it should be divided according to what each person ordered. Vivi Friedgut, CEO of Blackbullion, stresses the importance of open conversations upfront to ensure everyone is clear on who is paying or how costs are split.
Tom Allingham from Save the Student warns that informal arrangements like 'I’ll get this, you get the next' often don't even out over time, leading to one person paying more. He adds that the typical student maintenance loan falls £504 short each month, creating disparities within friendship groups.
Bill-splitting apps like Splitwise, Splid, and tricount can help reduce awkwardness. Splitwise, launched in 2011, allows users to track shared expenses and settle up via bank transfer or cash. A recent link-up with Tink enables direct payments within the app. Splid works offline and supports 150 currencies, while tricount is free and widely used.
Loderick says these apps 'take that conversation away' from nitpicking at the end of a meal or holiday. Allingham notes they are particularly effective for splitting small expenses, like a round of drinks.
