Experts Reveal Why We Should Stop Splitting the Bill

It's the awkward scenario we've all had to endure, when the waiter arrives with the check and everyone looks around nervously, wondering how to divide up the total amount.

After a long pause seems like it's never going to end, someone suggests splitting the bill evenly to save time.

All seems well, but then one person chimes in saying they'd rather pay for what they had —they did only have the salad after all. So what is the best practice when it comes to paying the bill?

Splitting Bills Helps With Rising Cost

The Bureau of Labor Statistics (BLS) estimates that the average weekly earnings of full-time employees is around $1,100. At first glance this might seem an ample amount, but throw in the worryingly high level of inflation, which currently sits at 4.9 percent according to the BLS, and there isn't always enough money to go round.

People across the country are crunching the numbers and trying to make their money stretch further. Whether it's simple budgeting tips to change lifelong habits, or home hacks to recycle something outdated, there are many ways to cut costs.

Saving a few dollars on the weekly grocery shop, or cutting back on Uber trips might save you a few dollars, but when it comes to splitting the bill while out with friends or family, that's still a difficult matter to navigate.

It's Important to Split Bills if You're Budgeting

Some people might prefer not to look at their bank balance regularly, choosing instead to believe out of sight, out of mind.

Content creator Grace Lemire, 24, used to spend her money liberally and only looked at her balance after the damage was done. She now opts for a more considered and mindful approach to budgeting, rather than spending freely and saving whatever is left, which has changed Lemire's perspective of bill-splitting generally.

"I think it's important to split bills, especially if you're on a budget. Personal finance is personal, and when you make a decision to go out with friends, whether or not that fits in your budget is usually based on how much you will spend, not how much the group spends," Lemire told Newsweek.

"If I'm out with a group and what we purchased was similarly priced, then I won't nickel and dime my friends. If what we purchased was priced differently then I'd prefer to pay for what I had."

When out with close friends, Lemire, from Massachusetts, admits that she's more likely to pay the bill evenly as long as there isn't huge disparity between their costs. However, if she's out with someone she doesn't know that well, or on a date, she'll only pay for what she ordered.

"There are instances, especially in large groups, where splitting the bill evenly prevents everyone from the headache of trying to ask the server to split the bill based on what items we got. With some friends I also don't care about splitting the bill evenly if there's only a small different in cost."

Splitting Bills Isn't the Fairest Method

Certified financial planner Andrew Latham understands that sometimes counting out all the individual costs for what each person had can be headache-inducing, especially for those who aren't mathematically gifted.

Saving a few minutes of calculating might not be worth the extra money it costs for some people, who end up paying more than their fair share.

Latham told Newsweek: "Splitting the bill equally may be the most straightforward option, but it's certainly not the fairest. If you are on a budget, or simply tired of subsidizing your bougie friend's wine tasting habit, then speak up early and suggest a different approach.

"The actual savings from paying your bill, instead of splitting it equally, will obviously depend on what you and your fellow diners order. Let's say you go out with a group of four friends and the total bill comes to $100, splitting the bill equally means each person would pay $25.

"However, if you only get a $10 salad but your friend gets a $40 steak, you will end up paying $15 more than your fair share. If you eat out twice a week, that is $1,560 a year."

Latham also says people should consider whether they're with friends who are drinking alcohol, as this can massively ramp up the prices.

"Alcoholic beverages can significantly increase the cost of a meal, and splitting the bill equally means that non-drinkers end up paying more than their fair share. For instance, if a group of six friends goes out and two of them order cocktails that cost $15 each, splitting the bill equally means that everyone would pay an extra $5.

"Do that a couple of times a week and you end up spending $520 a year financing your friend's drinking habit."

Offer to Pay the Whole Bill For the Table on an App

If you're trying to be money conscious and you order something that is within your budget, it can be infuriating if someone else orders the most expensive thing on the menu and then suggests splitting evenly. You end up leaving the restaurant still hungry despite paying twice as much as you owed.

This is something that credit card analyst Jennifer Doss discourages people from doing. Instead, she suggests using a credit card reward scheme to reap the benefits from dining out, without paying other people's share.

Speaking to Newsweek, Doss said: "Simplifying the payment process by dividing the check by the number of those dining might save your server some time, but whether it saves you any money depends entirely on your order.

"If you ordered the cheapest thing on the menu while your friend ordered something twice the price, you won't save any money by taking this approach.

"A better approach might be to offer to foot the bill for the whole table, paying with a credit card that rewards dining purchases, and then let your group pay you back afterwards with a free service like Venmo. That way you earn extra rewards on the purchase which can save you money."

Doss adds that this method can also "take some of the pressure off" when the server arrives with the card machine, and avoids the panic of trying to work out each person's individual split in a hurry.

It's Time to Be Upfront

Using cash back apps is also a practice approved by Andrea Woroch, a finance and budgeting expert, and author of Pivot With Purpose.

The main piece of advice that Woroch offers is being open and transparent about the situation. Personal finances are not to be overlooked and she believes that more often than not, other people will feel the same way about wanting to cut back.

"Speak with friends and family in advance before the check arrives," Woroch told Newsweek.

"If you've previously split bills in even amounts and you'd like to change the way you do so moving forward, it's time to be upfront. Chat about it with friends and family before going out so there aren't any surprises or awkward moments. You may be surprised to find out that another friend has felt the same way but didn't know how to bring it up. Everyone is looking for ways to save."

Woroch also suggests asking for individual checks as soon as you arrive, making sure the server knows each person is only paying their respective bill, which she claims avoids "any hiccups or awkwardness" as you don't have to calculate a group bill.

It seems there are a plethora of options out there to save time and money, so it's about figuring out what's best for you at the time. Perhaps it's time to put your foot down and explain that you no longer want to bankroll other people's expensive choices, or you want to try a rewards app to see what you can gain from it.

Taking the awkwardness out of splitting the bill is the way to start, as the experts suggest there's no shame in wanting to limit spending.

Do you have a monetary dilemma? Let us know via life@newsweek.com. We can ask experts for advice, and your story could be featured on Newsweek.