The “Singles Tax”: The Hidden Costs for Singles in Today’s Economy

In this episode:

00:00 – 02:00: Introduction and Defining Singleness
02:01 – 05:26: What is the “Singles Tax?”
05:27 – 12:35: The Impact of Student Loan Debt and Comparison
12:36 – 19:14: Tips for Single Young Professionals
19:15 – 25:10: Tips for Divorcees and Widowers
25:11 – 28:30: Final Tips and Closing

Whether you're a young professional starting your career, someone recently single after a life transition or simply prioritizing your financial independence, this episode provides the strategies and confidence you need to thrive on your own terms. Join SVP Wealth Fiduciary Advisor and podcast host, Kelly Mould, Wealth Portfolio Analyst, Claire Wordell and Chief Investment Officer, Dominic Ceci as they explore the real costs of being single and more importantly, provide actionable strategies to help build wealth and achieve financial freedom.

3 Key Takeaways 

1. The “Singles Tax” 

Single individuals face higher costs across the board, from housing and utilities to cell phone plans, because expenses aren't shared. One income must cover everything that couples often split. Paying the “singles tax” may not be ideal but it does provide the opportunity to hone in on your budgeting skills and prioritize what’s most important to you and your goals. 

2. Building Financial Foundations as a Young Professional 

The foundation of financial independence starts with budgeting your post-tax dollars to shape your goals. From there, focus on building an emergency fund — start with just one month's worth of expenses, then work your way up from there. Another one of the best tips for young professionals is to automate everything you can like savings, investments and bill payments because if you never see that money hit your account, you're far less likely to spend it.

3. Critical Steps for Divorcees and Widowers 

While proper planning can't ease the emotional weight of these transitions, it can absolutely improve your financial situation. Your first priority should be updating beneficiary designations on every account you have, because proper titling determines where your assets go no matter what other documents say. You'll also need to establish powers of attorney for both healthcare and financial decisions. If you're feeling overwhelmed, state bar associations offer free forms to get started or you can work with an attorney for affordable guidance through the entire estate planning process.

Being single may come with some financial challenges but you can also build wealth to create the life you envision on your own terms. Download our checklist for singles to ensure you stay on track. If you need extra guidance or financial support, connect with your advisor or get matched today.