David Koch, financial guru and former Sunrise presenter, says many Australians are hiding their bad spending habits from their partners as money becomes tight due to the cost of living crisis.
Koch spoke out after new data from Compare the Market showed that one in three have lied to their partner about their finances.
This is especially true for younger couples who are struggling to cope with rising rents or mortgage payments.
“One thing that surprises a lot of people I speak to is how many of us keep financial secrets from our loved ones,” Kochie told Daily Mail Australia.
‘People are making a huge effort to save and stretch their money right now, and I dare say many of us feel shame or guilt about overspending on that morning coffee, buying takeaway food at lunchtime or even splurging on new clothes.
“But being dishonest with our partners is an unhealthy habit that can have serious consequences if we let problems fester.”
An alarming one in five Australians also lie about gambling, according to a survey of more than 1,000 adults in June.
Koch, now research director at Compare the Market, said gambling debts could prevent a couple from qualifying for a home loan because banks have access to applicants’ spending habits and debts.
David Koch, financial guru and former Sunrise presenter, says many Australians hide their bad spending habits from their partners (pictured with wife Libby)
“Betting, gambling and excessive spending on lotteries can also hurt your chances of getting a home loan, as many lenders consider it a risky expense that could mean you won’t be able to repay a loan in the future,” he said.
A similar proportion also hide their true levels of personal debt from their partners.
More than a quarter of respondents lied about spending money on treats like coffee and takeaway food, while a similar number lied about splurging on clothes.
One in eight Australians also lied about how much they earned.
“Money can be a real shame and some people try to protect their loved ones by pretending their finances are better off than they really are,” Koch said.
“I don’t know where this mentality came from, but we need to do more to ask for help if we need it.”
Lying could also be especially damaging if a partner was saving for something like a mortgage deposit or a new car.
She spoke out after new data from Compare the Market showed one in three Australians had lied to their partner about their finances as the cost of living crisis puts a strain on relationships.
‘If you have money problems, is it fair to hide them from your partner, especially if you are putting money together for a house deposit or another shared goal?’
“If you have a lot of debt and you have a partner or children who are financially dependent on you, you may find yourself having to make some very difficult and stressful decisions that you shouldn’t have to face alone,” Koch said.
Financial strain on Australians is expected to increase, with the Reserve Bank under pressure to raise interest rates further at its next meeting to curb inflation.
The latest figures show the inflation rate rose to 4 percent in the month to May, while the RBA is targeting a maximum of 3 percent.
While rates have not risen since hitting a cash rate of 4.35 percent in November, home borrowers have suffered the most aggressive rate increases since the late 1980s, leading to a 68 percent increase in monthly variable mortgage payments.
Renters have it even tougher as Australia suffers from a housing shortage fueled by a record influx of immigration.
myElectricity bills are also rising faster than overall inflation as wages barely keep pace with the consumer price index.
