Is financial infidelity worse than adultery in a relationship?
Well, a Finder survey of 1,096 respondents revealed that 1 in 5 Australians (21%) – equivalent to 4.2 million people – think lying to your partner about finances is worse than physically cheating.
Baby boomers (23%) are most concerned with financial fibs in a relationship, compared to 22% of millennials, 21% of Gen X, and 18% of Gen Z.
Sarah Megginson, personal finance expert at Finder, said financial secrets in a partnership can have major consequences.
She further commented:
“Purposefully hiding information about money is a major red flag in relationships, especially when couples share finances.
Financial lies can be quite destructive and leave people feeling betrayed and untrusting. As our research shows, it can cause even more pain than a romantic affair.”
Megginson said there can be a number of motives for lying about money:
“For some people, the motivation to be dishonest is born out of embarrassment over a secret debt or an addiction that’s gotten out of control.
For others, it’s less about shame, and more about wanting to be prepared with a financial safety net in the event the relationship ends poorly, so they might have a ‘secret’ account they haven’t told you about.”
Finder’s research found that 79% of Australians – equivalent to 16 million people – say that having an affair is worse than being dishonest about your finances.
Megginson encouraged Aussies to have open and honest conversations with their partner as often as possible.
She further said:
“If you’re hiding something, consider coming clean sooner than later. The longer it goes on, the bigger the problem can grow and the more elaborate your lies are likely to become.
“Conversations about money are often difficult but they’re important to have.
Financial trust is really crucial in a relationship, so it’s ideal if you can talk openly about money and get on the same page, and ideally support each other to reach financial goals together.
If you feel like you are being taken advantage of or if you can’t leave a relationship because of financial issues, contact the National Debt Helpline.”
In light of the financial trust issues highlighted in the survey, couples may consider a binding financial agreement to outline financial responsibilities and protect their assets clearly.
What to consider before opening a joint bank account:
- Both parties can access the money: Because you both have complete access to the account, either person can spend the money. This is why it’s important to open a joint account with someone you trust.
- Overdraft facility: If your joint account has an overdraft facility available, it means you can spend more money than what’s available in the account, forcing your balance to go into the negative. Even if you didn’t spend the money, you’re both liable to repay the money and your credit score may be affected if you can’t.
- Division of funds if you separate: If you separate from your partner, dividing the funds in the joint account can be a messy, awkward task. Also, there’s nothing to stop the other person from clearing out the account entirely.
- Privacy: Everyone whose name is on the account will have easy access to the account online and will be able to see the transaction history of all account holders.
