Many singles only regret being unpartnered when it comes to splitting large bills such as housing costs. But, in today’s world, the decision to remain single can have significant economic advantages (even without tax breaks).
Societal norms often emphasize the benefits of partnership and family, but it’s essential to evaluate the wellness and financial perks of singlehood.
Being single can be more economical, especially when considering
The annual costs of raising a child
Managing personal finances
Avoiding the financial obligations of a partner
Avoiding the risk of impact to wellness caused by unhealthy partnerships
1. The Cost of Raising a Child
We all know and agree that raising a child is a rewarding experience, but it comes with substantial financial responsibilities.
According to recent estimates, the annual cost of raising a child in the United States can range from $12,000 to $14,000. This includes expenses for housing, food, childcare, education, and healthcare. Depending on where you live, these costs can easily balloon to double that amount.
Over 18 years, these costs can add up to a significant amount, often exceeding $200,000. For those who choose to be single, avoiding these expenses can lead to considerable savings and financial freedom.
Source: USDA Report on Expenditures on Children by Families
2. Financial Independence and Goals
One of the most significant benefits of being single is the ability to manage your own finances and set personal financial goals. Singles have the autonomy to make financial decisions that align with their priorities without needing to compromise or accommodate a partner’s financial situation. This independence allows for:
Personal Savings: Singles can focus on building their savings and investments, leading to greater financial security.
Consider the 14000/year in child rearing expenses. The same investment over a period of 25 years would equate to 1.67M if invested in stocks. See Ameriprise Investments Return Calculator.
Debt Management: Without the burden of a partner’s debts, such as student loans or credit card debt, singles can leverage their finances more effectively and therefore put more into saving and investing toward financial goals.
Financial Goals: Whether it’s buying a home, traveling, or pursuing further education, singles can allocate their resources towards self actualization. This could mean becoming the best in their field, perhaps even taking on entrepreneurial pursuits
3. Avoiding Partner’s Financial Obligations
In a partnership, financial obligations often extend beyond personal expenses.
In addition to addressing each other’s debts and spending habits, support aging parents, or manage joint financial responsibilities while also raising children.
For singles who are child free, these obligations are non-existent, allowing for a more straightforward financial landscape. This can result in:
Reduced Financial Stress: Without the need to manage a partner’s financial issues, singles can experience less financial stress and more control over their finances.
Simplified Budgeting: Singles can create and stick to a budget that reflects their individual needs and goals, without the complexity of joint finances.
4. Mental Health Considerations
We rarely discuss the impact to mental health that can arise for parents and for those within unhealthy partnerships. We might not be able to reliably quantify the cost of an unhealthy partnership, but we can all agree that the setback mentally and financially is staggering .
Relationships can bring joy and companionship, but they can also introduce stress and conflict. Studies have shown that financial disagreements are a common source of stress in relationships.
Even without these issues, having children in a traditional marriage often does not leave time for parents to prioritize their mental health. Specifically, exercise, meditation and therapy. This can lead to mental health issues going unchecked; requiring extensive financial investment and time to resolve later on.
Singles who choose to avoid these issues by staying single and child free (or by waiting for the right partner), could experience better mental health, increased overall well-being and therefore stronger finances.
Source: American Psychological Association on Financial Stress in Relationships
Conclusion
While we understand that the decision to remain single is deeply personal and influenced by various factors, the economic benefits feel significant. Singles can enjoy financial independence, avoid the high costs of raising children, and sidestep the financial obligations of a partner. Additionally, the potential for better mental health and personal growth makes singlehood an attractive, less risky option, especially for those who have yet to find a suitable partner.
Ultimately, whether single or in a relationship, the key is to make informed decisions that align with your values and goals. For many, staying single until the right partner comes along can be a wise and economically sound choice.