Young couples clash over cash

When couples fight over finances, the younger they are, the harder they brawl, writes Tim McIntyre

STRESSED Australian couples argue regularly about finances and youngsters are the most affected, new research reveals.

A finder.com.au survey of 1541 people found 52 per cent of the nation’s couples argue about money; 7 per cent every week and 16 per cent every two to four weeks. Generation Y couples lead the bickering, with 12 per cent arguing every week, compared with just 8 per cent of Gen X couples and 2 per cent of Baby Boomers.

Younger people were often exposed to the most pressure, according to finder.com.au spokeswoman Bessie Hassan.

“The great Australian dream is still alive, although for many younger Australians it’s slipping further away from reality,” Ms Hassan said. “The pressure associated with purchasing property can lead to stress and frustration, which in turn can result in arguments.”

Australia’s Facebook and Instagram addictions also add to the pressure.

“Living in the era of social media means so many details of our lives are documented and there’s certainly an element of ‘keeping up with the Joneses’ that comes with that,” Ms Hassan said.

“Some people – particularly younger generations – feel pressure to have only the best and this can cause friction in relationships, especially if the couple is working towards a shared financial goal, like a wedding or a holiday.”

Around 18 per cent only argued every three to six months and 11 per cent just once a year. Just under half claim to never argue about money.

Arguments around investing in or selling assets can cause disagreements when couples have different risk appetites, certified financial planner Kane Jiang from AA Financial Planning said.

“One is a saver and one is a spender,” Mr Jiang said.

“Generally they have the same long term goals but short term they may be different

“For example, a wife wants two kids and the husband wants one child and more travel … or the wife wants to work longer, but the husband wants to retire as soon as possible and go caravanning.”

Mr Jiang said that opposite personality types can be beneficial if the couple discusses short and long term goals and finds common ground. The results come after a June mortgage stress survey conducted by Digital Finance Analytics (DFA) estimated more than 810,000 households across Australia are currently experiencing mortgage stress; up from 794,000 in May.

Of these, 29,000 families were believed to be experiencing severe stress.

DFA estimates nearly 55,000 households risk defaulting on their mortgage in the next year, thanks to rising mortgage rates, flat incomes and underemployment.