Does Love and Money Mix?

Here are 5 ways this happens:

1. Couples earn more cash:

A recent study found that there exists a “marriage wage premium” - it varies depending on men or women, but generally speaking, married people earn between 5-40% more than their single peers and move up the job ladder faster, controlling for education and experience. Why is that?

There are several explanations. One is that the support of a partner gives people confidence to hold out for better opportunities or change careers, while another is that partners are motivated to support a family unit, rather than just themselves.

2. Couples donate more money:

A study found that men are more likely to give money to charity and give higher amounts shortly after getting married, though single women give more to charity than single men

3. Tax benefits:

Getting married comes with a whole host of tax benefits! For example:

• You unlock a new set of credits/deductions you couldn’t previously take, if you’re eligible
• Your combined income may fall in a lower tax bracket
• Filing can take less time and be less expensive

For a whole list of tax benefits, check out this article.

4. Couples who pool money stay together longer

A study done by Cornell University titled “Pooling finances and relationship satisfaction” found that couples who pool their money have longer lasting relationships. It’s simple - those who combine their finances were more likely to refer to “our money” versus “my money”, which applies to most facets of the relationship.

5. Money arguments can lead to divorce

Money arguments are the second leading cause of divorce, behind infidelity, according to this article. Having positive communication about money, understanding each others needs and wants, and not being afraid to discuss the subject is key to making sure you’re on the same page. Here’s some tips on how to set boundaries around money with your partner.

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