One of the biggest challenges couples face is deciding to consolidate their finances. That choice can have major consequences if both partners are not equally committed to financial transparency.
A new report from the National Endowment for Financial Education shows that, of those who say they’ve had a financial match with a romantic partner, more than 40% are committed to some form of financial infidelity. The study is based on a survey of more than 2,000 adults in the US.
Of those who engaged in some form of monetary fraud, the majority (85%) reported that the act affected the relationship, whether present or past, in some way. . And 16% of people said the situation led to the end of the relationship or the decision to separate financially.
Financial dishonesty covers a wide range of behaviors, including concealing purchases, failing to disclose financial accounts, and lying about income or debts.
“Regardless of the severity of this act, financial infidelity can cause enormous stress for couples – it leads to arguments, breaks trust, and in some cases, separated or even divorced,” Billy Hensley, president and chief executive officer of NEFE, said in the report.
Hiding purchases, bank accounts, statements, bills or cash was the most commonly reported form of financial dishonesty, survey respondents said, followed by financial lying. principal, liabilities or income. Research shows that 47% of men report financial fraud, compared with 39% of women.
Working individuals and parents with children under the age of 18 are more likely to commit this form of infidelity. Notably, the rate of financial infidelity did not change based on income level or home ownership status.
As for the reasons people cite to justify their decision to hide some aspects of their finances from their partner or spouse, the most common explanation is that they feel certain aspects of their finances are not. Their financial edge should be kept private. That reason was cited by 38% of those who had committed the crime of financial infidelity.
Other factors that seem to have forced people to cheat about their finances are fear of rejection and shame. Unmarried partners often appear more confused than those who have tied the knot.
To avoid financial infidelity — or to recover from one — couples can take steps to rethink their shared approach to money.
Ted Rossman, senior industry analyst at Bankrate and CreditCards.com, suggests considering “yours, mine, and ours” attitudes toward couples’ finances.
“If each person wants to have their own amount of money to spend without question, that’s fine, but you need to agree on the parameters ahead of time,” says Rossman. wrote in a separate report about financial dishonesty released in March. “This ensures you are aligning and working towards your broader goals.”
Diloney Carter, a senior advisor at insurance marketing and financial planning firm Equis Financial, suggests seeing these accounts as a “fun fund” for each partner.
“The deal is that the money in this account can be spent on anything without consulting your significant other,” Carter said. wrote in a blog post. “For example, you could instantly grab some of your Fun Fund and buy that low-budget TV series you love but your partner hates. And they can’t get upset because you spent money.”
Other researchers who studied? Financial dishonesty has also said that open and honest communication is important to prevent such dishonest practices.
https://www.marketwatch.com/story/are-you-a-financial-cheater-over-40-of-americans-say-theyve-deceived-their-partners-about-money-11637346867?rss=1&siteid=rss Are you a financial fraudster? More than 40% of Americans say they cheated on their partners about money