Saving for a Rainy Day or a Stormy Breakup? The Surprising Facts About Secret Savings Accounts
A recent study conducted by Smart Money People reveals that one in ten people in a serious relationship, including marriage, civil partnerships, or cohabitation, maintain a secret savings account.
The research for the study was undertaken by Opinium on behalf of Smart Money People from 12 to 16 January 2024 among 2,000 UK adults aged 18 and over.
The SMP study highlights the prevalence of this practice among those in their 30s, with 30% acknowledging having such an account. Additionally, women are reported to be more likely than men to save secretly, indicating potential gender-related financial dynamics within relationships.
The reasons for maintaining a secret savings account vary, with the most common explanations being that individuals already had the account before entering the relationship (38%) or the desire to maintain financial independence (37%). However, a surprising 22% of respondents with a secret savings account admit to using it as an emergency break-up fund, anticipating potential costs associated with leaving a relationship, such as moving expenses or repurchasing shared assets like a car.
Interestingly, over half (51%) of those with a break-up fund also have a joint savings account with someone other than their partner, introducing an additional layer of complexity to the financial dynamics within relationships.
The study sheds light on the impact of financial matters on relationship stability, revealing that 18% of adults believe a lack of financial compatibility has contributed to a break-up in the past. The biggest savings-related causes of friction for those currently in a relationship are having different opinions on savings habits or when it’s okay to use savings (28%). This underscores the importance of aligning financial goals and strategies within a relationship.
Financial compatibility is considered crucial by 95% of couples living together, emphasizing the significance of shared financial values. Despite this, 10% of individuals still maintain secret savings accounts, illustrating a potential disparity between stated beliefs and actual financial behaviour.
The study indicates that half of people in relationships do not save the same amount of money as their partner, primarily due to unequal earnings (65%). An additional one-third attribute the difference in savings to disparate spending habits, with 40% of these individuals maintaining secret savings accounts.
In terms of relationship longevity, the research suggests that couples with joint savings accounts feel more financially compatible (90%) compared to those without. The data encourages open and honest discussions about money within relationships, emphasizing the importance of navigating financial decisions together.
Commenting on the findings, Jacqueline Dewey, CEO of Smart Money People, said, “Many people may already have methods of saving that work well for them prior to a new relationship, so although long-term partnerships bring about new joint financial goals, this shouldn’t negate any personal goals for each individual.
“Having different outlooks and opinions on savings isn’t necessarily a deal-breaker, but finding the most suitable ways to manage this is important.”
In summary, the SMP study highlights the complexities of financial dynamics within relationships, emphasizing the need for open communication, shared financial goals and mutual understanding, in order to maintain a healthy and long-lasting partnership.
Many thanks to my friends at Smart Money People for allowing me to share the results of their research. You can check out Smart Money People’s guide to the best savings accounts here.
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