Is money an important factor for a lasting relationship?
Well, according to Finder's latest research, millions of Australians have been dumped by a romantic partner due to their financial situation.
The survey of 1,096 respondents revealed that 1 in 6 Australians (16%) – equivalent to 3.2 million people – have been through a break-up due to their financial troubles.
The research found 6% were dumped for having unpaid debt, while 5% said their low income or lack of savings had become an issue.
Meanwhile, the remaining 5% – which equates to 1 million people – were broken up with because of their poor understanding of personal finances.
Sarah Megginson, personal finance expert at Finder, said money is one of the biggest stressors on relationships.
She further said:
“From new relationships to couples who have been married for decades, money can be the cause of significant stress and disagreements between partners and it can actually be a major factor in breakups.
Nothing causes tension quite like misaligned money goals and over the past 12 months, this tension has been rising due to the cost of living pressures.”
Megginson urged couples to talk about money with their partner and be upfront about any financial difficulties – ideally before you make any big joint money decisions, like moving in together or investing in a pet.
She further commented:
“Chatting about finances can be taboo, especially if either of you is a little ashamed of your habits or savings, but it should be something you discuss early on in a relationship.
Stressful times around money are going to happen – it’s part of life – but when they do it’s important to make sure the lines of communication are open and you’re on the same page.
In a financial emergency, like your car breaking down, are you a ‘lean on the credit card’ person, likely to say ‘I don’t know how I’ll cope, I need to borrow from loved ones’, or is your go-to solution ‘it’s okay I have rainy day savings set aside for this’?”
The research also found out that financial incompatibility was greatest among Gen Z, with 29% of those aged 18-24 admitting they’d been dumped based on their finances.
Megginson concluded:
“People with wildly different money habits and attitudes can co-exist – but only if you clearly communicate and set expectations.
When one partner feels like they have to bail the other partner out frequently, it can set the scene for resentment to build and it can be a deal breaker if your money habits consistently don’t sync up.
Even if you don’t combine bank accounts, it’s important to be upfront about your financial priorities.”
