Financial Pros and Cons to Getting Married
Throughout history, marriage has always been viewed as economic exchange between two families. In olden times, the bride was “given away” by the family along with some dowry, or the groom’s family would “purchase” the bride from her family, hoping that she would take on the household tasks of a wife and produce healthy children for them. Marriage worked like a financial transaction, and there were pros and cons related to it.
Fast-forward to the 21st century, and marriage has significantly evolved, becoming a consensual union between two individuals who are deeply in love. However, you can’t pretend that there aren’t financial implications related to this union. There are many financial pros and cons to getting married, compared to living as romantic partners or living a single life. If you’re thinking about tying the knot with your loved one and are worried about money, here are some of the financial pros and cons to getting married you should know.
Pro: Better Chance at Wealth Creation
The biggest benefit to getting married is that your earnings tend to go up, and your expenses come down. That allows married couples to accumulate more assets compared to single people and non-married couples. However, this only happens when there are two incomes combined. If both partners are working and earning, their balance sheet will be healthier.
Furthermore, that will help the couple qualify for a better business loan or mortgage than if they were single. Studies have also shown that marriage increases the net worth of a couple by nearly 80% compared to single people.
Con: Wedding Expenses Can Hurt Your Pocket
Even though you don’t need to have a grand wedding to marry your loved one, the financial costs of the tuxes, gowns, flowers, reception, honeymoon, and other event expenses can set you back financially. That’s one of the main reasons why couples decide to postpone their weddings. Not everyone wants to get married at city hall, and some people want to save till they can afford their dream wedding.
However, if you look at the current figures, the average cost of a wedding in the U.S. in 2019 was nearly $30,000. Even though that number dropped due to the pandemic, couples were still spending close to $20,000 on their wedding in 2020.
Pro: Greater Financial Accountability
When you get married, you tend to feel more pressure to provide for your partner and get your financial act together. You can ignore your financial condition when you’re single, as you’re the only one affected by it, but the situation is different when you’re married. You don’t want to burden your loved ones and ruin their financial future, which is why you start taking greater financial accountability.
You will not only start looking at your spending but will start saving automatically. The commitment of marriage compels a different mindset in individuals, as the need to protect and care for their partner helps them take greater financial accountability.
Con: Additional Stress Related to Money
One of the main reasons for fights in a marriage and a leading predictor of divorce is money problems. An academic study found that people tend to marry their financial opposites, so financial planning becomes a greater source of stress in a marriage.
When realistic boundaries aren’t set for spending, there will be problems with budgeting, and small fights will become common. If one individual is a spender and the other is a saver, it will create a problem and creates additional stress in the marriage.