Secrets about Money: A Surprising Trend in Relationships
Would you keep secrets about money from your partner? A new Bankrate study says about 42% of people are already doing just that. It’s called “financial infidelity”, and experts suggest there are ways to overcome this challenge.
The Disturbing Statistics: How Many People Are Hiding Financial Secrets?
According to the Bankrate survey, a significant number of adults are keeping financial secrets from their spouses or partners. Here is a breakdown of the startling statistics:
- 30% of participants spend more than their spouse or partner would approve of.
- 23% admitted to having secret debt.
- 19% have a secret savings account.
- 17% maintain a secret checking account.
- 18% have a secret credit card.
The Factors Influencing Financial Infidelity
Ted Rossman, Senior Industry Analyst with Bankrate, sheds light on the reasons behind this phenomenon. Rossman emphasized that the study focused on married individuals or those living with a romantic partner. The delay in getting married, typically seen among young adults, could be one contributing factor. Young adults tend to become more entrenched in their own financial habits and may develop a mindset of “my money, my rules.” Additionally, some individuals may be influenced by their parents’ divorce and opt to maintain a separate freedom fund as a precaution.
Generational Divide: Gen Z and Millennials Lead the Pack
Rossman pointed out an interesting contradiction in the survey findings. The generation most likely to keep financial information secret from their partners is Gen Z, followed closely by Millennials. These generations are known for sharing intimate aspects of their lives on social media. They are also more willing to disclose salary information to coworkers and friends.
Reasons Behind Financial Infidelity: The Survey Uncovers Motivations
The Bankrate study delves into not only the act of financial infidelity but also explores the underlying motivations. Here are the reasons cited by participants for not being open about their finances with their partners:
- 37% said they wanted privacy and control over their finances.
- 33% claimed the topic of money never came up or they never saw the need to share.
- 28% admitted feeling too embarrassed to discuss finances with their partners.
- 17% stated they wanted to be prepared in case the relationship ended poorly.
- 14% revealed a lack of trust in their partner’s ability to handle money.
- 11% confessed to using the money secretly for addiction purposes, such as gambling, alcohol, or drugs.
Overcoming Financial Infidelity: Breaking Down Walls and Opening Up Conversations
Rossman believes it is essential to break down the walls surrounding financial infidelity and have open conversations about money in relationships. He suggests starting with informal chats and setting aside regular “money dates” every month or so. These meetings should be time-bound to avoid overwhelming discussions. Rossman recommends focusing on two main topics: what bills are due and what financial goals should be pursued. Finally, he stresses the importance of coming clean early, as most partners are forgiving when secrets are revealed promptly.
Analyst comment
This news can be evaluated as negative as it reveals a concerning trend of financial infidelity in relationships. The market impact is likely to be limited in the short term, as it primarily affects individual relationships rather than the overall economy. However, it highlights the need for financial institutions and advisors to provide education and support to couples in managing their finances and improving financial transparency.
