Shacking Up Could Be a Smart Money Move


A recent Pew Research Center analysis of U.S. Census Bureau data sheds some new light on cohabiting couples. If you’re college-educated, then there’s some very good news for you. But on the other hand, there’s very little economic benefit to those without college degrees who are shacking up. As it turns out, “median adjusted household incomes of college-educated couples were $106,400 for cohabitors, $101,160 for married couples and $90,067 for adults with no opposite-sex partners.”

So here we have yet another case for not getting married. The arguments is this: “for less-educated couples, cohabiting is an arrangement that looks a lot like marriage and may well include kids.” Pew researcher Richard Fry explains, “cohabitors without college degrees are more likely than those with degrees to live in a household with children, and those who do have significantly lower median household incomes than those who don’t.”

While the new data seems to be enlightening, new information about the correlation of money and unmarried couples living together, I can’t help but draw my own conclusions. It’s not some new revelation that higher education results in higher income. So to say that the bump in household income is simply due to whether or not a couple is cohabiting before marriage seems a bit far fetched.

If anything, the financial benefits probably have a lot more to do with that college degree than anything else make that times two and of course you’re left with more combined money than any other sect of the population, with or without children.