Marriage Makes You Wealthier

I’m pro-marriage. And so is your wallet.

There are few things in life that rival the exceptionalism of a life-long commitment to a flawed individual. It’s hard to stick with the same person through thick and thin, which is why the traditional wedding vows force you to acknowledge that imminent reality (richer/poorer, better/worse, sickness/health).

For that reason, it’s understandable that fewer people are getting married these days than in generations past. Why sign up for something so hard with such a high failure rate? But what’s more interesting is that even fewer people are getting divorced. Data shows that, while there were about 9% fewer weddings in 2021 than there were in 2011, there were 29% fewer divorces over that same time period. We’re taking marriage more seriously, both getting in and getting out.

From my perspective as a wealth advisor, that’s good news. The data is quite clear: marriage makes you wealthier.

In a 2022 report, the Census Bureau recorded the stark difference in median net worth between households headed by married couples vs. households headed by unmarried men or women.

Now, it’s understandable why married households would have about twice the net worth of unmarried households, since there are two people in a marriage. But if that were the only factor, you would expect the ratio between married households to remain closer to twice that of unmarried men or women. Since the difference starts at 3.13x (for ages 35 and under) and grows over time, there must be other factors at play.

The reality is married people make more and spend less than their unmarried counterparts. On average, married couples spend $10k less annually per person, with about half of that difference coming from lower housing costs. Additionally, married adults earn more than unmarried adults (both men and women).

The simple formula for building wealth is this: earn more, spend less, and invest the difference over a long period of time. What we see in the statistics is that married couples are able to put this formula into practice much more effectively than unmarried individuals.

Sure, correlation doesn’t imply causation. Maybe higher income-earners are more likely to attract a partner. Maybe wealthy parents are more likely to help their married children out with a down payment on a house. But, I think there’s something else going on.

What the data implies to me is that having accountability from a spouse tends to result in wiser financial habits. It’s easier to spend money foolishly when there’s no one but you to suffer the consequences. It’s easier to slack off when you don’t have a spouse depending on you to bring the best version of yourself to the table every day. A spouse who holds a mirror up to your face daily tends to make you act more responsibly. Teamwork evidently does make the dream work.

So, for all my boys out there who don’t want to get married because they think it’s too expensive… the stats don’t support that perspective. Just saying.

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Disclosure: This information is presented for discussion and illustrative purposes only and is not intended to constitute financial planning advice. The views and opinions expressed are as of the date herein and are subject to change. Morton Wealth makes no representation that the strategies described are suitable or appropriate for any person. You should consult with your attorney, finance professional or accountant before implementing any strategies concerning your finances.

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