Co-habitators are Stumped by the Wealth of Married Couples

Here’s a head-scratcher: Why is it that living together doesn’t deliver the same financial benefits as getting married?

In an interesting Wall Street Journal article today, economists explore some of the reasons and they aren’t so much about taxes or incomes but mindsets.

I think the difference is the big “c”: commitment. Married couples are all in, theoretically. They pool their incomes and invest together for the long-term leading to the prospect of exponential returns on their investments.

Couples who live together are roommates “with benefits.” No long-term commitment, just a month-to-month contract on rent and utilities. Either one can jump out at any time and frankly, may do.

Young women and men need to know that living together before marriage is not the same as being married and living together. Choose wisely.

Controversial question: Should young people live together before getting married?