David Koch, financial guru and former Sunrise presenter, says many Australians hide their bad spending habits from their partners.
He 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.
This is especially true for younger couples who are struggling to cope with rising rents or mortgage payments.
“I’ve been talking about finances for decades, and one thing that surprises a lot of people I talk 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 their gambling addiction, according to a survey of more than 1,000 Australian 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 consumers’ 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 of deceitful Australians also hide their true debt levels from their partners.
When it comes to lying in general, four in ten Australians told lies about how they had spent their money.
More than a quarter lied about spending money on things 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.
Koch said struggling Australians needed to overcome the shame of being in debt or having too much spending.
“Money can be a real embarrassment 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 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?’
Complications could worsen for parents raising children.
“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.
Last month the Reserve Bank left interest rates at their highest level in 12 years, 4.35 per cent, but hinted at another possible increase.
This is because inflation in the year to May rose 4 per cent, putting it further above the RBA’s target of 2 to 3 per cent.
While rates have not risen since 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.
myElectricity bills are also rising faster than overall inflation as wages barely keep pace with the consumer price index.