It is not impossible to think that married couples have an advantage financially in comparison to single individuals. It is more feasible to assess the bonuses and deficiencies of being married and try to consider how you are financially affected right now and in the future. Let’s look at various factors that could put you at an advantage.
The Cost and Savings
Married couples are probably able to save more than a single person because they are able to pool their resources together. They are also able to share household responsibilities and expenses. Additionally, married couples are able to enjoy more benefits that a single person doesn’t in terms of income taxes, insurance and retirement. Conversely, there are some financial costs associated with being married. For instance, a wedding is a huge expense for most couples. The governing tax laws are also beneficial to some married couples while others have to pay a penalty due to their particular situation. More importantly, couples run the risk of being divorced, which is the most major financial setback to experience.
A huge wedding can be a major expense for most couples starting out. It is not unusual for couples to spend almost $30,000 on their wedding. This is a one-day occurrence in the couple’s life, yet many think that it is important enough to spend a huge sum. While the memories are important, the debt incurred does not make it easy on their financial outlook. In many cases, the large debt from a wedding can result in a subsequent divorce as couples try to pay off the debt and may wrestle emotionally with each other as they do so. The single person does not have to contend with such issues.
Filing Income Tax
Married couples filing jointly and single persons filing as head of household both enjoy more tax credits. Parents filing as head of household enjoy lower tax rates and higher deductions in comparison to single individuals. In comparison to married couples, single individuals have to pay more taxes for the same wages.
Shared Household Expenses
The fact that married couples are privileged to share household expenses makes it better for them than the single person. In addition to sharing expenses, they also contribute double the income. The single person only has access to one income, in most cases. If a married couple pays $1500 in monthly rent and both have a combined income of $60,000, it works out better than the single person with the same monthly rent and a salary of $32,000.
Child Care Costs
In the case where there are children involved, babysitting costs can get expensive. When there are two adults in the household, it makes financial sense to alternate babysitting responsibilities from one spouse to the next, subsequently saving on hiring someone. In the case of the single person, this is not as feasible, other than taking other measures such as requesting family contribution.
Married couples do get a huge financial boost by sharing the same household. However, it is important to note that the financial savings will only last as long as the marriage lasts. In that case, the single person has the advantage of knowing their marital status and trying to make it work.