This archive report was first published on 24 July 2019.
According to a recent survey by Lloyds Bank, nearly two-thirds of 18-to-35-year-olds believe it's essential to know how much debt their partner has after the early stages of a relationship. In fact, 61% of respondents felt this way, while 38% also wanted to know their partner's income.
Emma-Lou Montgomery, associate director at Fidelity, emphasized the importance of discussing finances in relationships, stating: “Time and again it’s drummed into us that money makes the world go round, but behind closed doors in our private lives it’s all too clear the topic of money is still a major taboo for most couples.”
Montgomery added, “Even flirting with the subject of finances can quickly result in partners feeling embarrassed or hesitant about having an honest conversation – we have to get better at changing that mindset.”
However, not discussing finances could have significant consequences, including impacting long-term goals such as buying property, having a family, or traveling in retirement.
Interestingly, while 4% of respondents said they would be put off by a partner's debt, a fifth (21%) felt that keeping financial problems a secret could end a long-term relationship.
Catherine Kehoe, Lloyds Bank brands director, encouraged couples to talk openly and honestly about money, stating: “Our research shows that hiding financial problems is the biggest blocker to a successful relationship for over a fifth of young people.”
She added, “Having the conversation early is key, but we understand people find it difficult to broach the subject.”
