Family cell phone plans can save you a significant amount of money compared to several individual lines, but it’s worth considering the risks before bundling multiple lines into one plan. Let’s discuss several factors concerning family plans to help you make an informed decision.

Family: Defined by You

Despite the name, “family” plans aren’t restricted to traditional family units. Carriers generally don’t verify relationships between line holders, meaning you can share a plan with roommates, friends, coworkers, or any group of trusted individuals. The only real requirement is having someone willing to be the primary account holder and manage the billing responsibilities.

This flexibility makes family plans an attractive choice for various living situations. College roommates can split costs while enjoying premium carrier benefits. Small business owners might find family plans more economical than traditional business accounts for a handful of employees. Even remote workers who rarely see each other in person can band together to save money on their monthly phone bills.

However, the key word here is “trusted.” Since all lines are connected under one account and typically one payment responsibility, it’s crucial to choose your plan-sharing partners carefully. While carriers don’t care about your actual relationships, you should care about the reliability and trustworthiness of anyone you add to your plan.

The Big (and Easy) Three

The “big three” of cellular service providers—AT&T, T-Mobile, and Verizon—dominate the U.S. market for several reasons, one of which being their consistent marketing of family plans. Typically, their best deals and lowest prices are reserved for plans with at least four lines.

For example, T-Mobile’s Go5G plans start with a base price for the first line and offer bigger discounts for more lines. The third line is often promoted as “free” during special offers, making it particularly attractive for families. Their plans include perks like streaming service subscriptions and “unlimited” data, with premium features like 4K UHD streaming being reserved for only the most expensive plans.

AT&T’s family plans follow a similar structure but tend to focus more on device-related perks. They frequently offer significant trade-in values for new phones when you have multiple lines. Their Unlimited plans also include perks like streaming services for the whole family, though, like T-Mobile, video quality limitations apply to lower-tier plans.

Verizon typically charges the highest rates but offers more extensive perks, like the Disney Bundle or Apple Music subscriptions, on their premium plans. They also boast the largest 4G LTE network, but the importance of this coverage is actively declining as 5G networks continue to expand.

MVNO for Everyone You Know

Mobile Virtual Network Operators (MVNOs) offer a compelling alternative to the “big three,” if for no other reason than value. Carriers like Cricket Wireless, Metro by T-Mobile, and Visible sell plans at such a low cost that they undercut the competition – despite not offering much in the way of discounts for bundling lines!

However, MVNOs aren’t completely perfect, and their drawbacks need to be considered as part of their value proposition. Arguably, the most obvious negative for MVNOs is the tendency for their traffic to be deprioritized compared to the major carriers’ direct customers, especially during times of high demand. This means during network congestion; your data speeds might slow to a crawl while those on a major carrier plan are largely unaffected. Other drawbacks typically include limited data, minimal features, and poor customer support.

That said, MVNOs have evolved significantly. Some carriers prioritize low cost above all else, while others charge slightly more per line but include perks like international coverage, prioritized data allowances, unlimited data plans, and more.

Pools and Prices

Data management becomes more complex with family plans, especially when dealing with shared data pools. While unlimited plans are increasingly common, many affordable family plans still use a shared data model.

With shared data pools, one heavy user can affect everyone’s experience. For example, if your family shares 30GB of data and one member streams video constantly, others might find themselves rationing data by month’s end. Some carriers charge overage fees when you exceed your pool, while others slow data speeds dramatically.

To that end, most “unlimited” plans with both major carriers and MVNOs aren’t truly unlimited. Most “throttle” data speeds after a certain amount of monthly usage, typically around 20-50GB, depending on the carrier and plan level.

Here’s how data management typically works across different plan types:

• Pooled Data Plans: Everyone shares from the same bucket, requiring more active management.
• Per-Line Data Plans: Each line has its own allocation but might still have restrictions.
• Unlimited Plans: Usually include soft caps, after which speeds are reduced.
• Premium Unlimited: Higher soft caps and fewer restrictions, but at a higher cost.

Being the Boss

Perhaps the most overlooked aspect of family plans is account management and privacy considerations. The primary account holder has significant control over the entire group’s service, which can create both practical and privacy challenges.

The account owner can potentially:

• View detailed call and text logs for all lines.
• Set data usage limits and restrictions.
• Add or remove lines.
• Upgrade devices and make plan changes.
• Access billing information and payment methods.

This level of control may be beneficial in some cases, like for parents managing their children’s lines, but might create awkward situations with adult family members. Some carriers offer subaccount management features, but these vary significantly between providers.

Privacy considerations extend beyond usage monitoring. The account owner’s credit is typically used for device financing and service contracts. Late payments affect their credit score, regardless of which line holder was supposed to contribute. Additionally, all lines generally need to be on the same billing cycle, which can complicate cost sharing.

The Bottom Line

Family plans offer substantial savings but require careful consideration of everyone’s needs and usage patterns. While major carriers provide the most seamless experience, MVNOs can offer significant cost savings if you’re willing to accept some limitations. The key is understanding not just the monetary aspects but also the practical implications of shared accounts.

Before committing to a family plan, consider:

• Individual data usage patterns and needs.
• The importance of premium features like HD streaming.
• Comfort level with account sharing and privacy.
• Reliability requirements for your specific area.
• Long-term commitment possibilities.

Remember that while the savings can be substantial, the complexity of managing multiple lines and maintaining clear communication about usage and payments shouldn’t be underestimated. Take time to discuss expectations and responsibilities with all participants before making the switch to a family plan.