How to manage the costs of being single

For this week’s No More Ls column, we’re looking at the real costs of being single and how to manage the expense of being a party of one.

By Renee Sylvestre-Williams

Imagine you’re looking for a new apartment or you’re paying the same internet bill that your neighbours split two ways. Your rent and other bills would feel more reasonable if you had a roommate. When you book a trip, you discover the world quietly assumes you’ll be travelling with someone else. And if you go on your own, you pay extra just to go on a tour or a cruise—no two-for deals for you. This is the singles tax.

It’s not an actual tax that you fill in the yearly income tax forms but it’s a pattern that is baked, consciously or subconsciously, into the price of things that single people pay in Canada and abroad. In the 2021 census, 4.4 million Canadians identified as single. There are a significant number of us, myself included, but the way things are priced doesn’t seem to accommodate that. Most costs still assume there are two adults sharing them.

Here are the everyday places where single Canadians pay more and some ways to push back.

Why housing costs more for one person

Let’s talk about real estate, since everyone else is. Housing is a fixed cost with the average monthly rent of a one-bedroom in Canada at $2,060—it has dipped recently but is still expensive. Rent or mortgage payments are rarely proportionally cheaper just because the space is smaller.

When you’re not splitting the rent, you know that a one-bedroom apartment isn’t half the price of a two-bedroom; it’s usually more expensive even on a per-square-foot basis, since you’re not sharing a kitchen, bathroom, hallway closet, etc. And, when you’re single, you typically carry 100% of the utilities, internet, insurance and maintenance costs.

How to save at home

If you want to live alone, look at co-ops (non-profit housing communities owned and managed by the residents), which tend to cost significantly less than market rate. Other options include flexible arrangements that reduce fixed housing costs without sacrificing quality of life—like partnering up with friends on a shared mortgage.

Buying groceries for one with less food waste

Grocery stores can seem designed for families, with discounts for bulk pricing, family packs and multi-buy rewards. Singles pay more per unit for smaller packages compared to bulk items. Plus, when you’re cooking for one, buying too much food often results in spoilage and waste. You either throw food away or avoid buying in bulk only to miss out on savings.

There’s another cost that also creeps in: We can call it the “convenience tax.” After a long day, cooking for one can feel like a chore, making takeout or pre-made meals more tempting, even if they are more expensive. If you do cook, with the amounts that many recipes call for, you could end up eating leftovers for days.

How to save on food costs

Treat your freezer like a financial tool to save money. Batch cook multiple meals—that you enjoy—and freeze them. Buy frozen produce. Shop for the week you will actually have, not the week you wish you’ll have and avoid letting food waste in the fridge.

Travel on a single ticket

Travel pricing loves charging for a “single supplement,” especially for tours and cruises where rooms are priced based on double occupancy. As a single, you can’t take advantage of 2-for-1 deals on travel, food and hotspots, and there’s no one to split the Uber to the airport, the rental car or the Airbnb.

For single people, travel is often a key source of joy and freedom. But it comes at a premium, even though solo travellers spend significant amounts on tourism. The global solo travel market is projected to exceed USD$1 trillion by 2030 according to a study done by m1nd-set.

How to save when planning a vacation

Look for group trips and tours that waive extra costs for single travellers. Consider businesses which price their offerings individually rather on coupled-up accommodations.

You can also explore house swapping via safe reputable platforms, which can eliminate accommodation costs entirely while giving you a more local experience—and, as I see it, without any concern that you may be screwing locals out of affordable rentals in their own city.

Fixed bills and subscriptions don’t know your relationship status

Internet, family phone plans, streaming services, and home insurance are priced per household, not per user. Couples and roommates split them without thinking, while singles pay the full bill. Since these are monthly payments, people rarely think about them as a tax for singles.

How to save on bills

Remember to renegotiate your internet, phone and insurance annually. Call providers and ask about loyalty discounts or bundled services. Threatening to cancel a service can really nudge them, especially if you have proof a competitor’s price would be cheaper for you. If there’s no deal to be had, move to get a better deal elsewhere. The goal is to reduce the cost of any overhead you can’t split.

When you live alone, social life is often more important than for those coupled up, since your friends are your community. Many singles spend more time with friends to maintain connection and community because they don’t have built-in company at home. That often means accessing spaces that aren’t home, the office or school. That costs money.

How to save going out

Host movie nights and potlucks instead of always going out. Suggest coffee, walks and museum visits instead of dinners. Build your social budget without guilt and spend intentionally, rather than reactively. Building and maintaining a community takes work. You have to participate to get reciprocation.

Paying taxes and planning for retirement

Couples benefit from two Canada Pension Plan (CPP) payments, spousal registered retirement savings plan (RRSP) strategies and income splitting after retirement. Singles must fund their retirement with one paycheque, while couples often have the flexibility of two, often taking advantage spousal income-lowering strategies to save tax. Also, if you expect to be a high-earning retiree, you won’t have the advantage of that income splitting.

Add on the potential cost of various forms of care and personal support when there’s no one to fall back on. Most caregiving—and most of its economic contribution—is informal and unpaid, provided by partners, children, other family members and friends.

How to plan ahead for taxes and retirement

Pay yourself first, as the financial experts in Canada say. Automate deposits to your savings and investments such as your tax-free savings account (TFSA) and/or RRSPs early, and treat retirement accounts as a non-negotiable bill. Keep in mind that when you contribute to your RRSP, that can help reduce your taxes.

Planning ahead as a single person is not pessimistic, it’s practical.

Renée Sylvestre-Williams is a Toronto-based journalist and author. She has written for the Toronto Star, The Walrus and Canadian Family Offices. She is the editor-in-chief of The Budgette newsletter and author of the upcoming book The Singles Tax: No-Nonsense Financial Advice for Solo Earners.

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How to manage the costs of being single