Financial Perks of Relationships

There are many reasons why people might choose to find a partner, but one that is often overlooked is financial. Economists have shown that being in a relationship typically saves money and increases one’s financial standing. In analyses comparing the lifetime net worth of long-term married versus single people, people who were married built a larger and more stable financial foundation.

Double the income but half the cost

When in a relationship, there are two people, which means two incomes. But more income is only half the picture.

Many expenses get split between partners in a couple, especially the biggest ones like rent or mortgage. And that’s not counting the hundreds of smaller costs like groceries, memberships (such as Costco), streaming services (such as Netflix), or travel costs (such as car sharing in the commute to work or sharing hotel rooms). A significant other means significant savings.

Keeping each other in check

Partners in a relationship also help each other keep on track with their financial goals by holding each other accountable. You might feel OK cheating on your own budget, but people are less likely to cheat when it’s a shared budget.

Less need to impress

Many couples report that they tend to connect with their partner over home-cooked dinners rather than expensive restaurant meals, and that cozy movie nights at home are more common than paying for shows or going to the movies. When a glass of wine at the bar costs more than a bottle of wine at home, couples say it’s not a hard decision to make.

Overall, economists say that with relationships, all signs point to savings. While money is not the main point of a relationship, being in a relationship rather than being single typically puts both partners in a better financial position.

Need money to save money (through relationships)

This being said, it does not appear to be the case that being short on money motivates single people to look for relationships. Indeed, many singles in my recently published study reported that feeling financially stable is an important foundation to feel ready for a relationship. Higher income was linked not only to greater readiness for a relationship but also to greater odds of actually starting a relationship six months later in a sample of single Americans and in a sample of single Germans who were followed over 10 years.

Thus, while being in a relationship typically saves money and increases one’s financial standing, it is also true that being in a stable financial position is often the first step toward people’s readiness for a romantic partner. Which comes first? There is likely a threshold for minimum financial stability necessary before people consider partnering and reaping the potential financial benefits of relationships.