Secret Savings of Generation Z: Fifth have money hidden from their partners
- People between the ages of 18 and 24 are most likely to hide their savings or investments from a partner
- This is often because they are worried that the other person might spend on them
- But this may hinder their ability to plan their future finances, Investec says
New figures have revealed that Gen Z couples are most likely to have savings or investments they haven’t told their partner about.
Nearly one in five (18 percent) of 18- to 24-year-olds Married or cohabiting couples They admitted to having secret savings, compared to just four per cent of over-65s, according to data from Investec Wealth & Investment.
This shift is due to a narrowing of the gender gap when it comes to our finances, said Faye Church, Senior Certified Financial Planner at Investec.
Keep a secret? Investec says younger couples are more likely to hide money from partners
“For the younger generation, both parties tend to focus on career and money, especially before marriage, 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 married or cohabiting people had savings that their partner was not aware of.
The average amount they stashed away was £72,800, according to the survey, with experts saying hiding such large sums of money could have a detrimental impact on wider financial planning.
Church added: “There is no right way or wrong way for couples to arrange their finances, but surprisingly many of them keep significant assets hidden from their partners and this appears to be the case among younger generations.”
“A secret savings account may be a nice surprise when it comes to a large purchase, but with the average wealth hidden at around £72,800, there are financial planning issues to take into account,” says Church.
“Planning for retirement as a couple will be more effective if both parties know how much they have saved and how much they may need to save.
“Of course, financial independence is important, especially for women, but it can lead to problems if both partners are not aware of their overall financial situation.”
According to the survey, the main reason for keeping cash secret is fears that a partner will spend their hard-earned money. Nearly a third (31%) of respondents said this was their main concern.
This was higher among women at 33 percent.
Fears of separation prompted a third of men to hide their savings or investments, while this was a motive for only eight percent of women.
A fifth of respondents said they were saving their money secretly because they might decide to give up their job, while 15% said a loved one had left them money and they didn’t want their partner to know about it.
Another 10 per cent said a loved one had left them money and specifically asked them not to tell their partner.
What are the benefits of being more open?
Experts say being open about finances can allow couples to get closer together.
Being aware of how much each of you can contribute can allow couples to reach their financial goals more quickly, and can also help them reduce the taxes they pay.
“If you share your finances, you can be sure to use all the tax breaks available to you as a couple,” Church said.
“In addition, one partner may have a better understanding of finances, including budgeting, or may be more disciplined with their spending.
“Exchanging information and knowledge can help motivate spouses to reach a common goal faster, e.g Buying their first property.’
If you’re worried about your partner spending too much, these shared goals may help them see things in the long term, or create a savings plan.
Church added: “There are no hard and fast rules, and setting limits depends on the individual and his or her own spending and saving needs.”
“However, if you’re saving to buy a house, for example, it will be easier to set boundaries if you’re working toward a common goal.”
(tags for translation) Daily Mail