Households across the UK felt the pressure of rising costs in 2024, shrinking disposable incomes, and escalating debt levels. These financial challenges are making it harder than ever for couples to manage their money and will continue to be so in 2025.
Recognising this, Pepper Money is investigating whether financial secrecy is contributing to the strain, with many Brits reportedly hiding debts, salaries, and even outgoings from their partners.
What the data tells us
Recent figures from the law firm Weightmans reveal how widespread financial secrecy is among couples in the UK:
- 17% of Brits admit their partners have lied about debt.
- 24% of people don’t know how much their partner earns.
- 9% of Brits are hiding more than £1,000 in savings.
- 20% of couples argue about money at least once a month.
Additionally, Clearscore data reveals that 1 in 5 (19%) Brits say that they often argue with their partner about money, with another 22% saying they find talking about money with their partner ‘awkward’. This reluctance to be transparent about finances reflects a broader cultural discomfort with discussing money, but it often leads to larger problems down the line.
Why financial secrecy is a problem
Hiding debts, income, or expenses might feel like avoiding conflict, but it can have significant financial and emotional consequences. For example:
- Joint planning falls apart: Undisclosed debts can affect mortgage applications or derail plans to save for a major purchase.
- Imbalanced contributions: Without clarity around income, one partner might unknowingly shoulder more financial responsibility.
- Missed opportunities: Hidden savings, while seemingly positive, can hinder effective joint planning for long-term goals.
When couples lack transparency, they risk working at cross-purposes, undermining their ability to navigate financial challenges or achieve shared ambitions like paying off debt, saving for a deposit, or building an emergency fund.
Working together to manage money
The good news is that these challenges can be overcome with open communication and a team approach to finances. Here’s why it matters:
- Financial alignment: By sharing information about income, expenses, and debts, couples can set realistic joint goals.
- Fair contributions: Transparency ensures that both partners feel their financial input is valued and equitable.
- Debt management: Discussing debts openly allows couples to explore repayment strategies or options like consolidation.
- Strengthened trust: Financial openness builds a foundation of honesty, reducing stress and fostering a stronger relationship.
Building financial transparency
Pepper Money encourages couples to break the cycle of financial secrecy with small but impactful steps:
- Start the conversation: Begin with shared goals, like saving for a holiday or tackling a specific debt, to ease into more detailed discussions.
- Establish routine check-ins: Create a habit of monthly financial reviews to track progress and address concerns together.
- Be honest about debts: Share details about outstanding debts, including repayment plans, to avoid surprises later.
- Create a joint budget: Collaborate on a budget that aligns with both partners’ incomes and priorities.
- Seek support if needed: Financial advisors can help guide these conversations and provide practical solutions.
Moving forward together
Ryan McGrath, director of second charge mortgages at Pepper Money comments,
“With rising financial pressures, avoiding talking about money only adds to the stress. Many people feel too overwhelmed or embarrassed to discuss their finances openly, but honesty is the first step to regaining control. By fostering transparent conversations, couples can tackle their financial challenges together, creating a more stable and supportive future.
Following a year of unprecedented financial strain, it’s more important than ever for couples to face their money troubles as a team. Open communication may not solve every issue immediately, but it paves the way for better financial health and a stronger relationship.”