Is being single really more expensive? 🤔

In this week’s topic I wanted to explore what’s called a singles tax.

🔉 Do single people really pay more for everything or does it depend on circumstances? 🔉

According to a piece of recent research by Hargreaves Lansdown, singles spend on average £8,100 on housing, bills and groceries compared to £7,800 for couples per year.

Although this is only £300 per year more, it does make up a larger percentage of single people’s income (36% compared to 29% of couples).

However, couples tend to spend significantly more on discretionary things like dining out and entertainment, so perhaps it does balance out.

I wonder if everything considered single people always spend more?

Housing costs 🏡 

Since the cost of living crisis, housing costs have shot through the roof. Whether you rent or have a mortgage, housing costs so much more than just a few years ago.

If you’re single and live with other people, I would argue that your costs could be similar to those of couples. However, if you live alone, chances are you’re paying a lot more on housing 🫰.

Bills will also make up a big difference as you can’t split those with someone else.

For example, council tax in my area for a single person would be around £115 after 25% singles discount, but if you’re a couple you would each pay £77 for a similar kind of property.

That’s a whole 49% less!

Subscriptions 📺️ 

Have you ever asked a friend for that Netflix password to share an account? I know a few of you have.

When it comes to things like subscriptions, couples can really save a bit here by sharing the costs of streaming services.

For example, we have the following monthly subscriptions that we are sharing the costs of:

💻️ Netflix £10.99

🏎️ Now TV £29.99

🎶 Spotify Premium Duo £16.99 (Individual £11.99)

📺️ TV licence £33.90

🚚 Amazon prime £7.92 (£95 per year)

Single person would be paying £94.79 per month for all of the above, which is £44.90 more than it would be for a couple if they were to split it.

A pretty big difference.

If I was living alone, I probably wouldn't have all of these subscriptions, so technically the difference could be less if I was to cut out some of it.

Holidays and travel 🏝️ 

Travel can also be more expensive for singles. Hotels and other accommodation almost always cost more for single people than for couples.

For instance, if you wanted to stay at The Market House hotel in Reading (who wouldn’t??), you would have to pay £71 whether you’re a single person or a couple.

Yes, you do get your own big bed to yourself, but it will cost you double.

Couples can also share some transport costs such as car travel, but other means would pretty much be the same per person.

The conclusion?

In most cases it really does cost more to be single, but it’s possible to reduce the costs by being money savvy.

My weekly recommendation

A fascinating conversation with Dr Eliza Kilby on how the bank of mum and dad is providing very different opportunities to us, millennials.

I really enjoyed this deep dive into how the times have changed from our parents generation to now and what that means when it comes to wealth.

Want to support me? You can buy me a coffee here ☕

Until next time ✌️

Lina at Money Blues