Two in five hide savings from their partners

People in the UK are shrouding their finances in secrecy and hiding their savings away from their partners.

According to new research from Post Office Savings, two in five people (41 per cent) are putting a blanket over their money so their partners cannot see how much they have.

Those who are married (27 per cent) are more likely to conceal their money from their spouse than those who are co-habiting or in a less serious relationship (14 per cent). 

However, this is putting a strain on households, as keeping quiet about savings is causing tension for 13 per cent of people and for 16 per cent of married couples this has actually caused a break-up.

One of the biggest reasons for the secrecy appears to be that savers fear others will ask to borrow money if they know it is there, with 16 per cent citing this. A further 15 per cent worry if they lend money they will never get it back and half keep their mouth shut because they believe their finances are a private matter that should not be discussed. 

Interestingly, 13 per cent do not want to make their non-saving friends and family feel uncomfortable about money by talking about it.

A total of £92 billion worth of savings is being squirrelled away without others knowing, with the average account containing £8,717, according to the research.

Henk Van Hulle, head of savings and investments at the Post Office, said: "Many believe there is still something fundamentally embarrassing about discussing personal finances, but a fair few are worried about the implications of revealing details.

"Some worry they won't get the money back if they lend to family and friends, indicating people may be concerned about the possible tensions caused by unpaid debts."

The research revealed some encouraging findings, for example, 29 per cent are choosing to put cash away each month in order to achieve a specific goal, while just under one in five (19 per cent) admit to frequently making withdrawals from their savings account.

Unfortunately, many people are finding it difficult to build up funds and are relying on their current nest eggs to get by in their daily lives. Indeed, just over two in five (43 per cent) dip into their savings to pay for everyday expenses, such as the supermarket shop and household bills. 

In some cases, it is just happening because of unfortunate events, with nearly two-thirds of people (61 per cent) doing so to fund an unexpected expense such as a boiler breakdown. 

However, one in five individuals (19 per cent) are regularly taking money out of their savings to pay for new clothes, while one in ten (11 per cent) are even lending cash to family or friends.

Unfortunately, many may have less in their pots than they did five years ago and two in five (42 per cent) people say they are now putting less money into their accounts than they were before as they do not have the funds to do it.

By James Francis