Is It Cheaper to Be Single?

In the month known for Valentine’s Day, you may be looking for reasons to feel good about being single. Or married, or neither. There are always grounds for celebrating where you are in life, including from a financial standpoint. If you’re single – no one to get a gift for! Married? Stay home and binge watch the Bachelorette with your significant other. There are no rules when it comes to celebrating the month of love!

That said, the financial implications of being single versus being in a couple can make a significant impact on a person’s spending habits, particularly if you’re becoming entangled with someone whose habits are quite different from your own. If you’re wondering whether a change in status would affect your pocketbook, ask yourself what precisely might change:

• Lifestyle choices (eating out, etc.)
• Income levels (individual or joined)
• How each person manages their finances
• Household budget (shared or solo)
• Moving out or staying put
• Other changes in spending habits

How Your Relationship Status Can Impact Your Savings

Single folks and couples alike will usually find ways to save money if their financial situation requires it. If you’re thinking of making the leap into coupledom or marriage – or vice versa – do what’s best for you! But also take a moment to consider whether the move will cost you financially or potentially save money.

Reasons Being Single Can Save You Money

1. Individual Expenses: As a single person, you are only responsible for your own expenses. This means no splitting rent and utilities, which can sometimes be more economical in a couple. However, when you get to make decisions based purely on your own needs and desires, you don’t have to compromise with someone who’s habits may not be as prudent as your own.
2. Lower Housing Costs: Singles typically have smaller living spaces, which reduces costs. They might not need the extra bedroom, office space, or larger living spaces. Some choose to live in cheaper areas that cater to individuals, lowering both rent and utilities.
3. Simpler Financial Management: Managing finances as a single person is generally more straightforward. There’s no need for joint bank accounts, negotiations about who will pay for what, or dealing with financial disagreements. Singles can make independent financial decisions without considering a partner’s unhealthy spending habits or debts.
4. Solo Travel: Traveling solo can sometimes be less expensive for singles than couples, as single travelers have greater flexibility to choose budget-friendly destinations, shorter trips, or travel during off-peak seasons. Additionally, solo travelers often do not have to pay for an additional person’s expenses, such as hotel rooms or meals.
5. No Shared Financial Risks: Singles don’t face the potential financial risks associated with sharing finances with a partner. For instance, if a partner has poor credit or spends recklessly, it could impact your long-term financial goals or lead to financial strain.
6. Typical Couples Expenses: Spending on gifts for loved ones can cost a lot, even with the best of intentions. Singles only need to worry about their own financial health.

Why Being in a Couple Might Actually Be Cheaper

Now for another point of view. If you’re getting into a new relationship, here’s why your choice could potentially save you dollars.

1. Shared Living Costs: One of the most obvious financial advantages of being in a couple is that rent, mortgage payments, utilities, groceries, and even streaming services and subscriptions can be split between two people.
2. Shared Groceries and Household Goods: Couples can take advantage of economies of scale when it comes to buying goods and services. Groceries, pet food, furniture, even subscriptions to streaming services are more cost-effective when shared.
3. Tax Benefits: Couples who are married often enjoy tax benefits, such as filing jointly. Depending on income levels, this can lead to reduced tax burdens compared to filing as single individuals. Additionally, some tax codes provide benefits for dependents, which can be leveraged if a couple has children.
4. Health Insurance: One partner may be able to add the other to their employer-sponsored insurance plan, reducing overall healthcare costs.
5. Shared Transportation Costs: Couples may also save money by sharing transportation costs. Whether it’s commuting, sharing a car, or splitting travel expenses for vacations or day trips, the combined costs of transportation can often be less per person for couples than if each person had to manage their own travel expenses.
6. Dual Incomes: While not universally applicable, dual-income households do tend to have more financial flexibility. With two people working, couples might be able to save more or have more discretionary spending. They may also qualify for better credit terms, higher mortgage loans, and other financial advantages due to a combined income.

Use Prepaid Debit Card & Other Currency Exchange Financial Services

This month, show yourself a little love and visit your nearby Community Currency Exchange (CCEA). Our services can help you manage and track your spending, while also taking care of routine auto needs, bringing you the ultimate gift: peace of mind.

Visit CCEA online, or stop by your nearest CCEA location today to see what we can do for you!