- Those aged 18-24 are most likely to hide savings or investments from a partner
- It is most often because they are worried the other person would spend them
- But this could hamper their ability to plan their future finances, Investec says
Gen Z couples are the most likely to have savings or investments that they haven’t told their partner about, new figures have revealed.
Almost one in five (18 per cent) of 18-24s in married or cohabiting couples admitted to having secret savings, compared to just four per cent of over-65s, according to data from Investec Wealth & Investment.
Faye Church, chartered senior financial planner at Investec, told This is Money the shift was down to the narrowing gender gap when it comes to our finances.
Keeping a secret? Younger couples are more likely to hide money from partners, Investec says
‘For the younger generation, both parties tend to have a focus on career and money, particularly before they get married, and their own goals and needs tend to take priority,’ she said.
The wealth manager’s research revealed that on average around seven per cent of all members of married or co-habiting couples had savings that their partner did not know about.
The average that they stashed away was a huge £72,800, according to the survey, with experts saying that hiding such large sums of money could have a detrimental impact on their wider financial planning.
Church added: ‘There is no right way or wrong way for couples to arrange their finances, but it is surprising that so many are keeping substantial assets hidden from their partners and this appears to be more the case among younger generations.’
‘A secret saving account may be a nice surprise when it comes to a major purchase, but with average wealth of around £72,800 being concealed there are financial planning issues to consider,’ Church says.
‘Planning for retirement as a couple will be much more efficient if both parties know how much they have saved and how much they might need to save.
‘Of course, financial independence is important and particularly for women, but it can lead to problems if both partners are not aware of their overall financial position.’
According to the survey, the main reason for keeping the cash secret is worries that partner will spend their hard-earned money. Nearly a third (31 per cent) of those who responded said this was their chief concern.
This was higher among women at 33 per cent.
Fears of splitting up motivated a third of men to hide their savings or investments, while this was a motivation for just eight per cent of women.
A fifth of respondents said they were secretly saving up as they might decide to give up their job, while 15 per cent said they had been left money by a loved one and didn’t want their partner to know about it.
A further 10 per cent saying that they had been left money by a loved one who specifically requested they not tell their partner.
What are the benefits of being more open?
Being open about finances could allow couples to squirrel more away, according to experts.
Being aware of how much each of you can contribute can allow couples to reach their financial goals more quickly, and could also help them reduce the tax they pay.
‘If you share your finances, you can make sure to use all the tax allowances available to you as a couple,’ Church said.
‘In addition, one partner might have a better understanding of finances, including budgeting, or be better disciplined with their spending.
‘Sharing information and knowledge could help motivate a couple to reach a combined goal faster, such as buying their first property.’
If you are worried about your partner spending too much, these shared targets could help them to see things in the longer term, or set out a savings plan.
‘There are no hard and fast rules, and setting boundaries depends on the individual and their own spending and saving needs,’ Church added.
‘However, if you are both saving for a house, for example, it will be easier to establish boundaries if you work towards a shared goal.’
