- Almost a quarter of those surveyed were not honest about their income.
- More than half of American couples who experienced financial infidelity are in significant debt.
Moneyzine.com reveals that more than a quarter of Americans hide a financial secret from their spouses, while almost 1 in every 10 keep their debt balances hidden.
Monetary betrayal is prevalent and considered a major red flag
Amid the soaring fuel and food prices, almost 1 in every 2 Americans reported struggling financially, while the household debt reached $1.6 trillion by the end of the third quarter of 2022. The crippling debt causes friction and loss of communication between couples as well: the figures show that the most common forms of financial infidelity were regarding secret spending and undisclosed debt balances.
A survey shows that nearly 3 in every 10 Americans (28%) are not honest about the amount of debt they were in, which was the second most common form of financial infidelity following spending more money than a partner is comfortable with. There’s also a correlation between debt and being dishonest about one’s finances – 56% of couples who experienced financial infidelity are in significant debt.
This is regarded as a serious offense among US couples: of those who experienced financial infidelity, 19.9% are separating, while 16.5% attend counselling. A separate study disclosed that 3 in every 5 Americans put off marriage as they didn’t want to inherit their spouse’s debt, while 54% believe their partner’s high debt balance is a reasonable ground for divorce.
What drives financial infidelity?
Miscommunication is prevalent across couples who keep money-related secrets from one another. The biggest motivation to lie about finances was to avoid an argument at 38%, while 21% were simply embarrassed about their spending habits. A further 7% couldn’t find the courage to share the bad news.
Financial compatibility also emerged as a major factor affecting miscommunication between partners. 72% of those who never kept any money-related secrets say they agree on either everything or most things. Conversely, less than 43% of those who experienced financial infidelity can say the same thing, while 18% reported that they disagree on either all things or most things.
Financial infidelity among couples is a symptom of a larger problem of debt stigma, which is getting more prevalent across the United States amid the rising costs of living. A survey from 2020 showed that 1 in every 5 would rather someone read through their messages than disclose their credit history, while 35% regretted their credit card purchases immediately.
It’s disheartening to see so many couples resorting to dishonesty about their finances. Relationships should be cushioned with teamwork and transparency when it comes to finances so that couples can build a healthy future together – which is already hard in itself without undisclosed debt or spending.Jonathan Merry, CEO of Moneyzine.com
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