It was the famous Jennifer Lopez who taught us that “love don’t cost a thing”. And while J-Lo is right about most things, she might have gotten this one wrong. It seems when it comes to matters of the heart, money does in fact play a part. A new study by Choosi and CoreData has examined the financial behaviours of Australians, paying particular attention to how cash can affect couples. How much of our savings do we share with our sweetheart? Will a bad bank balance end in a broken heart? And is having a separate account a good or bad thing?
Read on to find out the price you pay for the perfect partnership!
Get prepared for a pre-nup
These days it pays to be pretty switched on when it comes to spending and it turns out most Australians are. In fact, the research found 69% of people believe it has become trendier to be financially savvy. So, that makes it hardly surprising that most couples prepare accordingly before entering into a binding relationship. The study uncovered that 81% of Australian couples have financial agreements in place.
Separation isn’t such a dirty word
When it comes to the game of love most couples see separation as a last resort...unless you’re talking about money. The study detailed that 70% of Australians who are happily in love are also happily maintaining separate financial resources. It seems the day of the ‘joint’ bank account is dead and buried. This is in line with the idea that now, more than ever, we’re independent with our finances. The study also found that 45% of Gen Y-ers have documented financial goals - proof that we’re putting in the hard yards with our hard earned! So we’re not about to share it, even if we share a bed!
They say honesty is the best policy, especially when it comes to the ones you love, but that doesn’t seem to always be the case. While trust and truth are the bedrock of any solid relationship, 1 in 3 people did admit they sometimes hide aspects of their finances from their partners. Whether it’s a sneaky savings account for a rainy day or perhaps the total of their weekly pay packet, either way it’s an interesting trend. Maybe it’s more of a self-preservation tactic as opposed to an attempt at being sneaky? The report also found that 63% of people believe they are ‘average’ or ‘terrible’ savers with people citing a lack of money (58%), impulsive spending (22%) and a lack of discipline (21%) as the most common barriers. It could be that keeping your partner out of the loop is a smart way of not having to face the truth!
Bad with money? Later honey!
We’re all pretty aware of the instant red flags when it comes to a new relationship. Bad breath, messy eater, hung up on an ex and... bad with money? That’s right, it seems those who are weak with the wallet will be unlucky in love. The national study proved that 64% of people believe bad finances are a deal breaker. So, if you’re struggling to save your dollars you may be struggling to get a date too! To make matters worse, 58% of couples admit finances can be a source of conflict. So even once you’ve landed a significant other, cash can still cause some serious issues! If you want to learn more about how Aussies manage their money, read about the study in detail.