Too many Australians are hiding their poor spending habits from their partners, according to David Koch, financial guru and former Sunrise presenter.
He spoke out after new data from Compare the Market revealed one in three Australians had lied to their partner about their finances, as the cost of living crisis puts a strain on relationships.
This is especially true for younger couples who are struggling with rising rents or mortgage payments.
“I’ve been talking about finances for decades, and what shocks many people I speak to is how many of us keep financial secrets from our loved ones,” Kochie told Daily Mail Australia.
‘People are really forced to save and get more out of their money right now. I bet a lot of us feel ashamed or guilty when we spend a lot of money on a cup of coffee in the morning, when we grab a quick takeaway for lunch or when we buy a new outfit.
“But being dishonest with your partners is an unhealthy habit that can have serious consequences if problems escalate.”
An alarming one in five Australians are lying about having a gambling addiction, a survey of more than 1,000 Australian adults in June found.
According to Koch, who is now research director at Compare the Market, gambling debts can prevent a couple from getting a mortgage, as banks have access to consumers’ spending and debts.
Financial guru and former Sunrise presenter David Koch says too many Australians hide their poor spending habits from their partners (he’s pictured with his wife Libby)
‘Gambling, gambling and excessive spending on lotteries can also reduce your chances of getting a mortgage as many lenders consider these to be high-risk spending and could result in you being unable to repay your loan in the future,’ he said.
A similar number of deceitful Australians also hide their true debt levels from their partners.
When it comes to lying, four in 10 Australians tell lies about what they spent their money on.
More than a quarter lied about spending money on things like coffee and takeaway food, while a similar number lied about spending money on clothes.
One in eight Australians also lied about how much they earned.
According to Koch, struggling Australians should no longer feel ashamed of debt and overspending.
“There can be a real shame surrounding money and some people try to protect their loved ones by pretending their finances are in better shape than they really are,” he said.
“I don’t know where this mentality comes from, but we need to be better at asking for help when we need it.”
Lying can also be particularly damaging if, for example, a couple is saving for a mortgage or a new car.
He has spoken out after new Compare the Market data revealed 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’re having money problems, is it fair to hide them from your partner, especially if you’re putting money together for a down payment on a house or some other shared goal?”
For parents raising their children, the complications can be even worse.
“If you have a lot of debt and you have a partner or children who depend on you financially, you may have to make some difficult and stressful choices that you cannot make alone,” Koch said.
The Reserve Bank left interest rates unchanged at a 12-year high of 4.35 percent last month, but signaled another hike was possible.
This is because inflation rose by 4 percent in the year to May, still above the RBA’s target of 2 to 3 percent.
While interest rates have not risen since November, homebuyers have faced the steepest rate hikes since the late 1980s, resulting in a 68 percent increase in monthly variable mortgage payments.
Tenants have it even harder: Australia is facing a housing shortage.
IElectricity bills are also rising faster than general inflation, as wages barely keep pace with the consumer price index.