British couples suffer a breakdown in financial communication

At a time when money issues are commonly acknowledged as one of the most common causes of relationship breakdown, new research from Engage Mutual reveals the financial secrets which could be fuelling Britain’s divorce rates.

More than one in five (22%) Britons living with, or married to, their partner has a financial secret which they are not prepared to share with their loved one, with credit card spending topping the poll as the number one ‘red’ lie between couples (36%).

The research also shows that despite the importance of financial stability when bringing up children, parents are in fact the most likely to keep secrets from each other about their finances (24% compared to 20% of couples who are yet to have kids). Mothers are the most likely to keep schtum about their finances (27% compared to 21% of fathers), with one in ten hiding their debt and credit card bills (10%) or having a secret stash of spending money (9%).

With government figures reporting an all time high in the number of people seeking debt counselling, Engage Mutual surveyed over 1,300 British adults as part of their 3GB campaign in order to understand how escalating money worries are impacting family relationships. The latest research reveals a concerning breakdown in communications between couples, which could lead to a nasty shock for the partner kept in the dark.

Top Five Money Secrets Kept From Co-habiting Partners

Rank - Financial Secret - Percentage of those who keep secrets

1 The size of debts / credit card bills 36%
2 Bank statements 32%
3 How much luxury purchases actually cost 27%
4 A secret pot of spending money 23%
5 A secret savings account 18%

Both men and women with children are more likely to keep a financial secret from their partner (21% of men with children compared to 18% of men without kids, and 27% of women compared to 22% of women without children). Mothers with children still at home are the most likely to hide their finances from their partners; of those who keep secrets from their partner 41 per cent do not tell them how much luxury purchases actually cost, 31 per cent do not reveal the size of their credit card bills or show their partner their bank statements and 33 per cent have a secret pot of money.

Women who earn their own income are far more likely to hide their finances from their partner. 41 per cent of women in a relationship where both partners work keep financial secrets, compared to 22 per cent of men.

Karl Elliott, 3GB 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. For example by choosing children’s savings accounts together parents can both take joint responsibility for saving for their children’s future.”