Financial infidelity: do you hide your money from your significant other?

Published on 4th November, 2021 at 08:58 am

Do you play open cards with your partner when it comes to finances? A recent poll revealed that 51% of millennials ‘dupe’ their partners when it comes to money matters. Overall, 40% of respondents in serious relationships admitted to hiding a cheque, savings or credit account from their partners. 11% confessed to secret debt. Here’s why being open with your partner about your finances is so important, and how to go about it.

What is financial infidelity?

“Financial infidelity is any kind of lie or secret around money or spending in your relationship.” This is according to certified financial planner Liz Frazier, writing for Forbes about how damaging financial infidelity can be. Money is known to be one of the most divisive topics for couples. That is why it is critical to have courageous conversations and set shared money values and goals together. But getting started isn’t always easy. Lee Hancox, Head of Channel and Segment Marketing at Sanlam, says, “A first step to start the conversation is financial openness. Couples should agree upfront on how much of the finances are to be integrated or separated, based on their unique circumstances and relationship. Before taking any action, consider any unintended consequences that may arise later. Openness and honesty, whatever the circumstances are, are key.”

More on millennials

Millennials seem especially reluctant to be open. Janet Winterbourne, a relationship counsellor, says this could be due to their more individuated approach to money. Older couples, on the other hand, may have established their relationship construct 20 or 30 years ago, based on an existing socio-economic framework, where roles and equality between couples were different.

She adds that an individual approach is fine, provided partners are honest with each other. “Finances can be a personal matter. Some people, if they fulfill their monetary obligations within a relationship, don’t feel the need to share their entire financial situation. However, it’s worrying if a lack of trust is causing one partner not to open up to the other, or if a person is using deception to hide financial mismanagement, due to embarrassment.” This ties into the poll findings, which revealed that 30% of participants confessed to spending more than their partners would be comfortable with.

Spot the signs

There are, of course, exceptions to the norm, but there are often subtle signs to look out for to sense whether your partner is playing open or closed cards when it comes to finances. There are also useful tips to measure your thoughts and behaviour against. Here, Hancox shares some of these:

• Avoiding The Talk
  The first common sign when a partner is playing closed cards is when they avoid ‘the conversation’ at all costs.
• Change in behaviour
  You know your partner’s patterns. Identify whether your partner has found interest in new possessions and experiences that are out of the ordinary.
• The sudden availability of money
  Having money readily available when an expense arises could indicate a new credit card, loan or some secret cash reserves.
• Separate bank accounts
  A request to have his or her own bank account after considerable years of a joint account may also raise some alarms.
• New circles
  A partner may gravitate to people who represent the aspirational lifestyle he or she is striving for to justify new spending behaviours.

Resolve the rupture

If you spot these signs, it’s important to initiate a courageous conversation with your partner to align your financial goals and values. This can be difficult if trust has been lost. Here are Hancox’s tips for getting back on track:

Have open conversations

It may help to schedule the conversation in advance. Pick a neutral place to have it and consider setting an agenda upfront. Make sure you both feel comfortable and in a ‘safe space’ to talk. Try to be as non-judgemental as possible. Drill deep into what informs both of your money personalities – including your childhoods and past relationships. Share your world views and how you both feel about finances. Then consider how you want to approach money together. You may even want to write an informal ‘contract’ of sorts, where you commit to shared values and being accountable to one another. Sticking to a ‘yours, mine and ours’ money approach is fine, as long as you’re on the same page. Also keep in mind that money talks are not once-off. They should be frequent. It may be useful to diarise a once-a-month meeting to chat all things finances.

Use a budget template to set the right foundation for a budget that works for you.

Include a financial planner

Sometimes it helps to have someone objective in the room. A financial planner can help mediate a conversation and give you a holistic plan to navigate your finances as a mechanism to achieve your shared goals and build your life together.

Don’t have a financial planner? Book a meeting with one today.

Find a balance for goals that you’re both passionate about

It’s important to have individual goals. It’s also good to have some shared ones. Ensure that your individual goals don’t jeopardise the dreams you have together.

Are you looking to save towards a new car, holiday or home renovation? Use this savings calculator to help you set the correct amount to put away each month towards your goals.

Seek counselling

Often, money talk brings up a lot of other things. It can reveal unequal power dynamics. It can cause considerable shame. It can uncover childhood hurts and cultural misunderstandings. And it can breach trust – for example, hidden debt that compromises both partners’ long-term financial wellbeing. Sometimes it’s a good idea to invest in your relationship and seek therapy.

As a Sanlam Reality member, you have free access to Trauma, Assault and HIV Assist as one of your benefits. Get 24-hour counselling telephonically by calling 0860 732 548/9.

“As soon as you enter a serious relationship, have the conversation with each other, understand the different attitudes towards money, get on the same page about spending habits and dig deeper into each other’s backgrounds. Consider involving a financial planner to give you a solid foundation and road map to work from,” suggests Hancox. “Practise being open about your financial situation, as this is crucial to successful financial planning. Your plan is only as good as the information that you provide to your financial planner, and, if there are things that are not disclosed, this impacts the accuracy of the plan and the eventual outcome,” concludes Hancox.

To talk about and plan your finances, you need to partner with an expert you can trust. Book a meeting with a financial planner today so you and your significant other can get on track to your goals. As a Reality Core, Plus or Health member, you will also earn 8 000 tier points for this meeting.