Matrimony or mate-ri-money… the choice is yours

Most of us are aware there are certain savings to be made if you’re married. While money may not buy you love, there is evidence to suggest a bit of romance could help to protect your pocket.

So should all singles be launching themselves into relationships in a bid to save a few pennies? Well perhaps not…

There are three important words to add to your vocabulary if you’re (young) free and single: MOSHing, mate-ri-money and FLAPers. MOSH stands for multiple occupant shared home and it happens when first-time buyers get together with other single friends to collectively buy a property.

Research from Future Poll indicates that 59% of singles who don't own a property say that doing so would greatly improve their quality of life and 30% have several friends they would consider buying a property with. According to the Government Office for Science, single-person households are projected to increase by 163,000 per year from 6.8 million in 2006 to 10.9 million in 2031.

The report also identified a new demographic in the UK described as FLAPers (financially liberated and positively single). Gone are the days of feeling left on the shelf; instead, people in the UK are looking for ways to live independently without ending up out of pocket. Those who see marriage as old-fashioned and unnecessary, for example, really seem to be embracing this new ‘financial friendship’ concept.

Future Poll found that 80% of singles believe friendships last longer than romantic relationships and more than one in four single people would go to their friends first if they needed money urgently.

But what if you’re already married? Well, there’s no need to call in a divorce lawyer! Being in a committed relationship can definitely save you money.

In general, couples are seen to be safer prospects for insurers – particularly car insurance companies – than their single counterparts. According to the Towers Watson Car Insurance Price Index.

Although this is set to change when new gender equality legislation takes effect in December, the average annual comprehensive car insurance policy currently costs £954 for a male driver, typically falling by £502 when a spouse is added. Deep down we all knew women were better drivers!

If that doesn’t send you rushing down the aisle, a new study from NS&I might just tip the balance. Its latest Savings Survey suggests Brits who are in a relationship save around £800 more each year than singletons. A fifth save at least £200 more per month; more than £2,400 over the course of a year. 

Relationships have the biggest effect on men's finances, with men saving an average of £85 more each month under their partner's influence compared with a £50 increase for women. Young men (aged 25-34) are most influenced by their partners, saving around £100 more. As many as 15% of women in relationships admit to being motivated to save more due to their partner's bad financial habits compared with 11% of men. 

John Prout, NS&I director, comments: "It is good to see that people in relationships are motivating one another to save significant sums of money. As well as helping each other save towards goals and providing more security in difficult times, these savings will make a difference for the bigger financial milestones that come during a relationship, like buying a home, or saving for life in retirement." 

Overall, the research seems to suggest that two heads (or wallets) are better than one; whether you decide to put a ring on it or not.

Read more from Joy in the next issue of Liberti magazine.