The second principle is that the sharing ethos of marriage is especially beneficial in terms of both daily and longer-term expenses. In many countries, it is also common for parents to help newlyweds buy their first home. This is particularly the case when it comes to the wedding itself, with monetary gifts being customary in cultures around the world. “Marriage confers more economic and interpersonal benefits today than in the past, because two-earner families have a huge advantage over single-earner ones, and laws and social values encourage more equality and democracy for all family members,” said Stephanie Coontz, Director of the University of Texas Council on Contemporary Families.Īnother interesting aspect is that married couples are more likely to receive money from their families than their single or cohabitating peers. What’s more, this trend of wealth accumulation has augmented considerably over time. In the UK, for example, 31 percent of cohabiting couples keep their finances completely separate and just 54 percent are homeowners (in comparison to 74 percent of married couples), while their finances are in poorer health too, according to Aviva’s Family Finances Report. In this sense at least, they are not as fully committed to one another as married couples. Married couples are better off than their single peers, as long as they take the phrase ‘till death do us part’ literallyĪs Zagorsky explained: “Married people are more likely to buy homes or make other investments together than people who are co-habiting.” In essence, knowing the relationship is for life inspires a greater readiness to invest and plan for the future.Ĭohabiting couples, on the other hand, tend to save and invest less, while keeping their finances separate. The first relates to savings – married couples save more, as thinking and living as a unit, so to speak, is more conducive to long-term financial planning. There are three main principles that explain this considerable difference. “Compared to being single, married people almost doubled their wealth, increasing it over 93 percent,” said Zagorsky. Written by Jay Zagorsky, the report, Marriage and Divorce’s Impact on Wealth, closely followed the net worth of individuals throughout their 20s, 30s and early 40s, and found that the wealth of married respondents increased by around 14 percent for each year they were wed. In 2005, the most comprehensive study on the economics of marriage was published. Indeed, married couples are considerably better off than their single peers – as long as they take the phrase ‘till death do us part’ literally. However, though it is true that divorce can be costly to the point of bankruptcy, marriage actually tends to lead to increased wealth. There are a number of reasons behind this, but the perceived protection of hard-earned assets is one of the most significant. Over time, much has changed in the institution of marriage: from the 1950s, when marriage was about bringing together the traditional roles of men and women to form a union based on practicality and compromise, to today, when it is largely seen as a equal partnership rooted in love and mutual respect.Ī growing number of individuals, however, are bucking a trend that stretches back centuries by choosing to unshackle themselves from society’s What’s less well known, however, is that marriage is also financially beneficial for the couple involved. And, of course, for the companies that facilitate this happiness, it remains a very lucrative industry.Īccording to an IBISWorld report on wedding services, the global market is worth an estimated $300bn per year – and that number is just a fraction of the whole picture. Times are rapidly changing, but for many people around the world, marriage remains the ultimate symbol of happiness. Top 5 economic risk factors that must be considered.Top 5 ways that the finance industry can prepare for AI.Top 5 emerging fintech hubs across the globe right now.Top 5 ways that GDPR has impacted digital banking.Top 5 financial services that are ripe for automation.Top 5 ways to boost employee engagement and commitment.Top 5 most influential and inspirational US economists.Top 5 countries to be world’s next manufacturing hubs.Top 5 WFH habits, according to the world’s most successful business leaders.Top 5 keys to global economic recovery in 2021.Top 5 sustainability pioneers in Europe.Top 5 forces that will shape international finance in 2023.
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