Cheap vs Frugal: Splitting the Bill

Being frugal throughout your life is key to building and sustaining wealth, but being cheap is a whole other ball of wax- and there is a huge cosmic difference between the two! But what is it? And who decides? Fabulous & Frugal

takes a look at a variety of social situations to determine the difference between being cheap or frugal. Here's what we discussed this week…

We've all been out to those large group dinners where it's all fun and laughs…until the bill comes. You know how awkward it can be: perhaps you just ordered a mixed green salad, while Beth orders soup and an entree and Sam orders the steak. Then Jen orders two bottles of wine 'for the table', but Sarah isn't drinking, and Johnny is drinking beer. Then Denise orders dessert (with 6 spoons) and, well, you get the idea…

There is much debate when it comes to the dollars and cents of eating out. So how do you split a group bill? And what is considered generous, frugal or just downright cheap? What is the proper etiquette in these group dining situations?

When it comes to a group splitting the bill, there seems to be two camps of people, and ironically each tends to accuse the other group of being cheap! Team A believes in splitting the bill evenly. They think long term, putting them in the 'what comes around goes around' camp. After all, next time maybe you'll get the lobster when Sally is just having soup, and it will all even out eventually…

Then there are some people who insist on paying for only what they have ordered and nothing more. This is Team B, and of course from their perspective, why should they spend their hard earned cash for Sherry to have Filet Mignon while they are just having a Caeser salad? Team B tends to focus more on living in the moment. Their perspective is that it is not them, but the people who order the more expensive meals who are acting cheap if they don't offer to pay more.

So what do you think? What's the proper thing to do? Should you all split the bill evenly, assuming that what comes around goes around? Or do you pay according to what you ordered? If someone only puts in for their share, are they just trying to be frugal -- or is that a cheap move? And - if you're not comfortable with the way a bill is divvied up, do you speak up, or simmer quietly while subsidizing your friend's foie gras? Likewise, is it cheap for the person who ordered the most not to assume that he/she will pay the more? How do you and your friends handle this cheap vs frugal dilemma?