Friends are now joining bank accounts. There are risks, but Stephanie has found reward

For many of us, the idea of a shared bank account is nothing new – provided it’s shared with a loved one, or perhaps a close family member. But would you consider sharing one with a mate?

While still somewhat uncommon, the idea has recently gained traction on TikTok, with a video from Australian influencer Caitlin Emiko going viral last year after she discussed how she and her best friend share “all of our money”.

Why? Ease, transparency and accountability, mainly. It can be particularly helpful for housemates, managing group travel, gifts, and for sport and recreational clubs.

One-third of Australians currently live in shared accommodation. Stephanie Leahy is one of them, based in Lithgow, regional NSW. She has shared an account with her friend and housemate, Phillip Gow, since 2021.

“We originally decided to use the account for shared bills, making sure everything for the house was paid, creating a buffer for expenses like the massive gas and electricity bills that winter in Lithgow requires to stay warm,” Leahy says.

She and Gow were paying all of their bills, but found there wasn’t much cash left over.

“We didn’t go out, we didn’t have fun, we just worked and came home. We both earn good money, our household nets around $150,000 per year. However, as individuals, neither of us was getting ahead.”

An unexpected house move really put the pressure on. Shortly after, Leahy had a frank discussion with Gow about fully joining finances. He was sceptical.

“He was happy to share household finances, but combining all our debt and savings felt like a loss to him. He felt he would be responsible for a greater financial burden, whereas I saw it as a shared financial burden, which could only be a net positive,” she says.

“Currently, when it’s difficult to get out of the grocery store with just the necessities for under $100, you need to consider all your options. For singles like my friend and me, it’s becoming increasingly difficult to get ahead without help.”

It requires a level of transparency that many people aren’t comfortable with, but it has definitely worked for us.

They agreed to join finances and created a budget for all known expenses for the year ahead, including a buffer for unexpected events. The duo share a “2Up” Up bank account, designed to make expense sharing easy for two people. Uptake of these accounts grew 32 per cent last year, with Gen Zs and Millennials the majority of their users.

“Both our full pays go in. We input all of our expenses – car payments, subscriptions, a weekly allowance for groceries and fuel, pet expenses, gym memberships, household utilities, etc. [The app] keeps track of what those payments are and how often they need to be paid.”

The remaining money is split into different accounts, each receiving a percentage of the month’s surplus, based on its priority level.

“The health and wellbeing account receives a higher percentage than personal hobbies, for example,” Leahy says.

“It’s not foolproof. Sometimes we over-budget, sometimes we under; it’s an eternal work in progress. Our only rule is that if it’s coming out of the joint expenses, you have to be transparent about what you bought and why.”

But going all in has worked for them since December 2024. The two also have their own personal weekly allowance and hobby accounts, which allow for more financial autonomy when needed.

Leahy acknowledges that sharing an account with a friend comes with some risks, saying the two regularly check in to ensure they’re on the same page, while remaining open and honest with each other. She suggests having access to your own personal savings in case things go pear-shaped.

Like sharing an account with a partner, it means you might face more scrutiny about where your money goes, which could help you save better.

“Is it easy? Absolutely not. It requires a level of transparency that many people aren’t comfortable with, but it has definitely worked for us,” she says.

“We are $14,000 ahead in savings from where we were only 12 months ago. The more we save, the more debts we pay off, the easier it becomes to plan for the future we both want.”

Leahy says she’s tried many ways to get ahead on her own, including being stricter with her budget. “It didn’t work. This is the only thing that has worked for me in the almost 20 years I’ve spent relying purely on my own finances.”

Expert tips on how to save, invest and make the most of your money delivered to your inbox every Sunday. Sign up for our Real Money newsletter.