- 20
- Dec
There is a lack of communication between couples when it comes to discussing finances, new research indicates.
In a study released by engage Mutual Assurance, more than a fifth (22 per cent) of those who are married, or co-habiting with their partner, are keeping a financial secret from their significant other, on areas ranging from covert savings accounts to the amount owed via loans and credit cards. The firm also pointed towards government figures indicating that a record number of consumers are seeking counselling relating to their debts. In turn, engage Mutual Assurance suggested that such an unwillingness to be open about money matters could result in a “nasty shock for the partner kept in the dark”.
Overall, the amount owed via credit card bills, personal loans and other types of borrowing was revealed to make up the most popular type of financial secret people are keeping from their partners, accounting for some 36 per cent. Meanwhile, 23 per cent of those surveyed have a secret stash of money stowed away. Research from the firm also showed that 32 and 27 per cent of respondents have told a mistruth about how much they have in their bank accounts and the true expense of luxury items respectively. Just under a fifth of Britons in a relationship have a hidden savings account.
Research from the firm also revealed that those couples with children are most likely to be secretive to each other about their finances. Just under a quarter (24 per cent) of people with offspring, compared to 20 per cent of consumers yet to start a family. In addition, women who work are more likely to lie about money matters, such as loans, savings accounts and credit cards, than men. Some 41 per cent of females in a relationship where both partners work will disguise their monetary standing, in comparison to 22 per cent of males.
Commenting on the study, Karl Elliott, spokesperson for engage Mutual Assurance, said: “It is important that couples discuss their finances, particularly when children are involved. As the needs of the modern family change, financial worries can be a major cause of relationship breakdown. Understanding the state of your joint finances before a situation gets out of control could help to alleviate problems further down the line. Choosing financial products as a couple and going through finances together can help to keep communications open.”
Mr Elliott added that by choosing monetary products such as children’s savings accounts together, parents can take “joint responsibility” for their family’s financial future. Such principles could also be applied to taking out a loan, as when both people in a relationship are conscious of how much is owed then they can take effective steps together in getting back into the black.
As a result, the applying for a cheap loan could be an effective means for couples to get to grips with spending. At the same time, it appears that women are increasingly having a role in determining how household finances are spent. Research conducted by Egg shows that about a fifth of men earn less than their female partners. In turn, one in five of these women report that such a higher income affords them to have a larger say in how money is managed, which could relate to applying for a loan, making mortgage payments and setting up pension schemes.
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