February 26, 2025
Singles often have more trouble managing their finances than couples do. We look at why this is and how single people can regain control of their money here.
Being single can mean that you have freedom to follow the wind, but this freedom can quickly narrow depending on the money you have in your pocket. And the reality is that it’s more expensive than ever to be single in Canada, even with strong financial planning and budgeting.
The average cost to rent a one-bedroom apartment across Canada breaks down like this:
Following the rule that roughly 30% of household income should be spent on rent, you’d need to earn roughly $7,200 a month ($86,400/year) to afford an apartment in Toronto or Vancouver, $5,500 a month ($66,000/year) in Calgary and $5,380 a month ($64,500/year) in Montreal.
The problem is that the average Canadian 2024 salary, is $67,282 a year.
The numbers simply don’t add up.
The average single person spends 18% more every month on living expenses than each member of a cohabitating couple spends. The three most common culprits of this increase are taxes, healthcare and food prices, where a single person will generally spend over $700/year more than a couple. Combined with having to cover a 100% of the rent on a place to live, it’s not uncommon for single people to finish a year in the red.
In fact, single Canadians make up 42% of those who file for insolvency, compared to married Canadians who make up 34%.
All this to say that if you’re single and having trouble with financial planning and budgeting, you’re definitely not alone.
Knowing that your expenses are higher than coupled-off people, being extra cautious with what you spend, where you cut and how you save will help.
The 50/30/20 rule has been a staple piece of advice for generations: 50% of your income goes to needs and 20% goes to savings or debt repayment, leaving 30% for your wants. In today’s economy the rising cost of needs is throwing the 50/30/20 equation out of whack, and directing people's money away from servicing debt, saving money and treating themselves.
The recommendation would be to maintain the 20% savings or debt repayment and spend less on yourself. But this doesn’t have to negatively impact your quality of life. In fact, some choices you make will do the opposite.
You may not have to take anything away from your fun fund if you can find savings in your living expenses. One way is to shop around for new insurance and cell phone and internet plans. These companies want your long-term business, and their salespeople are motivated to make it happen. Being a disloyal customer could also help you save some money.
When you are single, your financial plan will vary depending on your life stage: a never-married person in their 20s has a very different reality than a single divorcee in their 50s or a widower in their 80s. But the idea should be the same across the board: a single long-term goal to work towards as you knock off short-term goals. It’s easier to achieve when you have total say over where and how your money is spent.
Remember that it doesn’t matter what the long-term goal is because it will keep you focused.
If you’re carrying debt, getting rid of it should be your priority. Short term, the more you pay off, the less interest you’ll be paying every month. Long term, carrying less debt will give you more freedom to enjoy yourself when you go out. If you are struggling to make ends meet and you are only able to make the minimum payment on your credit card, it might be a sign that you need to seek out for help. During a free initial consultation, a Licensed Insolvency Trustee can evaluate your situation and see the options available.
You’ll inevitably find more than one free or affordable event to attend. The good thing about free events is that they’re usually packed with people. You can expand your social circle, grow your professional network and maybe meet someone special.
February 26, 2025
Singles often have more trouble managing their finances than couples do. We look at why this is and how single people can regain control of their money here.
