My personal view on money
Throughout my life, I’ve been fascinated by the relationships people have with money. As a generation who grew up with no money education at school, the way you value money largely comes down to your family values and what you were taught by your parents.
I see money as a currency we need to survive, but I would ultimately rank it about 5 down a list of my most valued priorities. However, because of this, I’ve had to do some work on myself and my relationship with money. Especially since struggling financially, for the last 4-5 years.
Independence whilst in a relationship
In addition to this, I’ve always been fiercely independent. My partner was aware of this when we got together and I’ve always had a separate bank account – I always will. My view is that independence in a relationship is healthy. I don’t desire to give all of myself to another person and I don’t think you need to – to love someone. We manage money as a household, but also still have separate money pots.
Secret savings
I wanted to share with you some research, undertaken by Smart Money People which shows one in ten people in a serious relationship have a secret savings account. Over one-fifth of these are saving an emergency ‘breakup fund’- in the event they need to leave the relationship. This was most prevalent in women in their 30s.
Differing outlooks on saving
The vast majority of people (95%) who are living with their partner (married, civil partnership or cohabiting) believe that it’s important for couples to have a similar outlook on saving money. One in ten (10%) have a secret savings account.
Savings habits have caused a breakup for one in five
Financial matters can be a difficult subject in a relationship. Nearly one-fifth (18%) of adults say that a lack of financial compatibility has contributed to a breakup. (28%) say opinions on savings habits or when it’s okay to use savings, caused friction. (52%) said a difference in savings-related opinions might prevent them from pursuing a relationship.
Reasons for Secret Saving
The most common reasons for a secret savings account were already having the account before the relationship began (38%) and maintaining financial independence (37%). However, (22%) of people with a secret savings account are using it as an emergency breakup fund – in the event they need to leave the relationship. (51%) of people with a breakup fund also have a joint savings account with someone other than their partner.
Tips for combating differing opinions on saving
Jacqueline Dewey, CEO of Smart Money People said:“Agreeing on how you save is important for couples who share joint financial goals, such as saving for a mortgage or putting away funds for a family holiday. However, agreeing on the best savings products is just as important.
Differences in savings habits
Half (50%) of people in a relationship don’t save the same amount of money as their partner, with the most common reason being due to not earning equal amounts (65%).
Earnings aren’t the only big factor at play when it comes to saving equal amounts. One-third (33%) of people in a relationship say they don’t save the same amounts as their partner due to having different spending habits. Forty per cent of these people have a secret savings account.
Those who save together stay together
The research found that most people (82%) who are living with their partner believe they are financially compatible with their partner. It also found that couples with a joint savings account feel more financially compatible (90%) than couples without.
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Until Next time
I hope you enjoyed reading these interesting facts on secret savings accounts, savings habits and how money management impacts relationships.
I would love you to join in the discussion in the comments.
Notes about the research
- The research was undertaken by Opinium on behalf of Smart Money People from 12 to 16 January 2024 amongst 2,000 UK adults (aged 18+).
For further information contact: Kerry Sheahan at Browser Media at 0207 099 0945
About Smart Money People
Since its launch in 2014,Smart Money Peoplehas received over 1.5m reviews on the products and services of insurers,banks, building societies, and credit providers. These insights, comments, and experiences not only inform more people to make better decisions but also help financial services companies create better outcomes for their customers.
About Women’s Wealth
Women’s Wealthis an innovative unbiased financial advice and coaching service that specialises in empowering women to create fabulous financial futures for themselves.