Dear Dr. Per Cap:

I’m a single parent along with most of my friends.  It’s tough but we get by.  Do you think single parents are at a financial disadvantage compared to two parent families?

Signed, Single and Kind of Loving It

Dear Single

There’s interesting research by a sociology professor from Penn State University.  A quick summary: differences in family structure, such as single parent or two parent household, are the biggest factor in explaining the affluence gap between whites and minorities.  In recent years the importance of family structure has also grown compared to other factors, even discrimination.

Based on the research and life experience I think single parents, especially single Native parents, have a tough road to hoe and often struggle financially.  Two paychecks are certainly better than one so without the added income of a partner the single parent home has less money coming in.  That’s a major challenge right there.

It’s also difficult for a single parent to take advantage of economies of scale, a term that refers to cost advantages from mass producing or distributing goods and services.  It’s why Walmart sells stuff cheaper than smaller stores.  They get discounts for buying merchandise in volume which allows them to turn around and sell it for less.

The same applies to a household.  It’s cheaper per person to fix dinner for three family members than for two and cheaper per person to feed five family members than three – unless you invite some of my relatives.  My family is the reason there aren’t any more all-you-can-eat cafeterias in the Southwest.

Economies of scale also apply to insurance rates, utility bills, and a bunch of other family expenses.  And once upon a time economies of scale made loading a large family into the back of a pick-up for a night at the drive-in theater the best deal and most fun of summer.

Then there’s childcare.  Lacking a partner to share parenting duties puts the single parent at an enormous disadvantage not only financially but emotionally.  Fortunately, grandparents and extended family help toe the line in many Native families.

But there’s more to think about.  The examples I’ve listed all assume we have a stable household in which both partners pull their weight.  Unfortunately, that’s not always the case.  Moreover, financial benefits are offset quickly in a two parent household in which abuse or neglect take place.

Sounds like you’re pretty happy being single but for any single person looking for more financial security I am firm believer in strength in numbers.  A healthy, happy relationship can make all the difference.

Ask Dr. Per Cap is a program funded by First Nations Development Institute with assistance from the FINRA Investor Education Foundation. For more information, visit www.firstnations.org. To send a question to Dr. Per Cap, email askdrpercap@firstnations.org.