Finances can make or break a relationship. When it comes to financial cheating, this could be the final nail in the coffin that sends many relationships under. A survey conducted by Forbes revealed that 1/3 of spouses admit to lying to their partners about money.
But what does it mean to financially cheat on a partner? Here is what you need to know.
What is financial cheating?
Financial cheating is when one partner lies about their finances such as; bills, accounts, or even how much debt they may be in. It can be a warning sign or red flag that sends many marriages on a downward spiral. A small lie about your financial situation can lead to far-reaching consequences.
It can also come in the form of hiding major purchases or hiding cash which 58% of people have admitted to doing. According to a survey conducted amongst Americans, 11% of people have lied to their partners about debt and the amount of money they earned.
What are some of the red flags?
Talking about finances is a topic that has many couples stepping on eggshells. However, without being transparent about their finances, they could soon find themselves in financial turmoil. Knowing some of the red flags can help you and your partner get the help you need while it is still early to avoid landing in the red. Some of the red flags to look out for are:
They want to be in control of all the finances. Not only does this relinquish a joint partnership on how you can plan to use the money for better together, but it also leaves you in the dark on what is happening on the financial front.
They have lied to you before. If your partner has lied to you before about money, then it is a warning sign that there could be more lies.
There are more arguments about money. Speaking openly and honestly about your finances and planning accordingly tends to lead to fewer arguments over money since there is a general understanding.
Sudden changes in spending habits. Changes in how your partner spends is a red flag that there could be some trouble financially.
They lie to other people about their financial situation. Lying about how much money you make to others or how much debt you are in is a warning sign that there could be more than what meets the eye.
Creating an open space to speak about finances
Being honest about where you are financially is important for both parties to do. You may need the help of an accredited financial advisor or a debt consultant to help pave the way forward, but both require honesty.
Understanding each other's money personalities can also lead to less frustration. It can help you strike a balance between your strengths and weaknesses, instead of breathing room for tension.
However, what is even more crucial is having a shared set of financial goals you aim to achieve to give you a sense of direction
Having a budget in place can also be a financial saver. Planning these things together can lead to more trust and direction, which can be rewarded in growing your money in all the right ways.