Spring is a time of growth and renewal and a time many couples decide to take their relationship to the next level. Many think of buying a property together or moving in to a rental property and sharing bills.
A new survey by The
Money Advice Service highlights the importance of honest discussions about finances with a partner. The Service talked to 2,000 UK adults in serious relationships and uncovered a surprising number of ‘escape funds’. In other words, a sum of money hidden from a partner, specifically intended to allow them to have the financial means to leave the relationship.
The average escape fund was found to be around £7,500. One in ten (9%) married adults in the UK admitted they currently have one, while an additional 14% said they'd had one previously.
Secret stash
While most people (41%) cited ‘financial independence’ as the reason for keeping their money separate, 38% of people were worried their partner would want to spend the money, and one in five (20%) wanted to be sure their partner didn’t just like them for their money.
For those thinking of making a large financial commitment, there are some simple tips to follow to help get joint finances in order and avoid any problems down the road. Try setting financial goals to aim for together, such as saving a deposit for a home.
However there is no magic formula to managing your money in unison, but the options include keeping separate accounts; share everything; share some responsibilities but keep some things private; or the main earner pays their partner an ‘allowance’.
Talking about money with your partner can be a struggle, but it doesn't have to end in an argument. Here are the
dos and don’ts of talking about money with your partner from The Monday Advice Service.
