Credit, collections & insolvency news
Consumers have kept at least 21 million financial products secret from their loved ones, according to a new study of people’s financial behaviours from the Money and Pensions Service (MaPS) to mark Talk Money Week.
Of those who have kept financial products a secret, the most common were hidden credit cards (37%), undisclosed personal loans (23%) and secret savings accounts (21%).
Despite Covid-19 having a widespread impact on people’s finances, the stigma surrounding talking about money in British culture remains – 38% stay silent about money worries, with some of the reasons they give including embarrassment or fear of being judged.
The research, which surveyed over 5,200 people across the UK, has been launched to mark the start of Talk Money Week (9-13 November), a public awareness campaign run by MaPS to improve financial wellbeing by encouraging people to open up about their finances, from pocket money through to pensions.
Millennials proved to be the most secretive generation, with 59% disclosing they have secret financial products, compared to just 26% of retirees (65+). Of 25-34-year-olds who’d kept a product secret, credit cards, personal loans and overdrafts were most commonly hidden (by 40%, 31% and 23% respectively).
The Talk Money Week study revealed that people in relationships tend to underestimate the extent of money secrets their partner keeps from them. While 23% of people in relationships suspect their spouse has kept a money secret, hidden products were found to be even more common, with nearly half of those in relationships (45%) admitting to having an undisclosed money product.
The research also suggests that people in relationships across the UK have significant knowledge gaps when it comes to their partner’s financial situation. Almost a third (30%) said their partner does not know how much their annual income is approximately.
Sarah Porretta, Strategy and Insights Director at the Money and Pensions Service said “We know there are numerous reasons why people keep money secrets from those closest to them; a secret savings account could act as a buffer for those who want to escape a difficult relationship; an unpaid bill could be kept under wraps in order to protect anxious family members. For many who keep money secrets, it can be a feeling of shame or embarrassment that debts have spiralled out of control.”
“Yet we also know that many people will be struggling with money worries due to the financial impact of Covid-19, so if you feel this is getting on top of you, having a conversation with someone – a friend, family member or expert – can bring a different perspective and allow you to feel more in control as a result. Opening up is a valuable start to making problems more manageable, for the benefit of our health, relationships and overall wellbeing.”
“If you need to strike up a conversation, use Talk Money Week – there’s never been a more important time to start talking than today and our online Talk Money guides offer guidance to help start conversations and prepare yourself ahead of these. You are not alone and, as our research shows, there are many others harbouring secrets about money; there are resources available to help tackle some of these secrets including debt advice, as well as money and pensions guidance.”
Jasmine Birtles, TV money expert and Talk Money Week supporter, said “Talking about money is still off-limits for a lot of people in the UK. Although we’re happy to talk about all sorts of subjects that used to be off-limits, if you ask someone about their income or investments they clam up. Talking about money really does seem to be the last taboo, despite it being something which is on everyone’s mind. In fact, it’s especially helpful to talk about it now, given the impact the pandemic has had on many people’s finances.”
“It’s particularly important when times are uncertain to talk about money with those closest to us, so we can work together towards a common goal and support each other’s progress. If that’s not an option, you can turn to organisations like the Money and Pensions Service, who have trained specialists who give free, non-judgemental and impartial guidance.”