The Differences in Net Worth for Singles and Couples, According to Federal Reserve Data

Key Takeaways

• Married or partnered households have a median net worth more than four times that of single households.

• Dual incomes, shared expenses and age-related factors contribute to the wealth gap between married and single households.

• Single parents face the steepest financial challenges.

Being in a relationship isn’t just an emotional choice. It also tends to leave people better off financially.

People in relationships tend to share costs, pool resources and have more money coming in, boosting their ability to save. How much better off are they? According to the Federal Reserve, couples (both those married and those living together as partners) hold more than four times the median net worth of single households.

The Marriage Premium

According to the Fed’s Survey of Consumer Finances, partnered households had a median net worth of about $316,000 in 2022 (the last year for which data is available), compared with $74,000 for single households. Reviewing the averages, which are skewed by ultrawealthy outliers, the disparity narrows but remains significant: $1.5 million for married households versus $445,000 for singles, about two-thirds less.

Several factors explain the gap. The most obvious is that couples living together benefit from dual incomes and shared living expenses, and they’re more likely to buy a house and build home equity.

Married households tend to be older. Net worth, the bulk of which for most people is from home equity and retirement savings, accumulates over time. About four-fifths of married households are headed by someone 35 or older, according to Federal Reserve data.

According to Lawrence Sprung, a certified financial planner at Mitlin Financial Inc., being in a relationship can shift how people handle money. “Couples who are on the same page, working toward shared goals, often make better long-term decisions than their single counterparts,” he said.

Single People Can Buck The Trend

Statistically, single people find it tougher to build wealth. But that doesn’t mean they’re bound to be worse off than their married peers. With the right steps, it’s possible to overcome the financial disadvantages of being single and to build significant wealth alone, Sprung said.

“Singles need to be intentional with their habits toward wealth building and control areas for which they have control,” he said. “Areas of focus for them should be having a strong savings rate, avoiding lifestyle creep, investing consistently, and having protections in place if they cannot work or have a loss.”

Sprung also pointed to overlooked financial advantages single people often have over their married peers: fuller control over finances and more flexibility to relocate or change jobs.

Kids Drag Down Net Worth

Relationship status isn’t the only thing driving a big net worth gap. Children also play a big role.

Married couples without children have a median net worth of about $399,000. That falls to about $270,000 for households with one or two kids, and to $185,000 for those with three or more.

The numbers are even starker for single parents. Single adults without children have a median net worth of $83,000. Add one or two kids, and that drops to $54,000. With three or more, it lands at $31,000.

The Case for Early Planning

Any parent knows that children are expensive. But the right habits and early planning can soften the financial hit of parenthood.

Sprung said saving early can blunt the drain: money set aside for retirement or a child’s education has decades to compound before the bills arrive.

He did it himself. “My wife and I started saving for our children’s education before they were born,” he said. “Today we are paying their college tuition with money that represents 20% of the principal we invested and 80% growth.”

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