Plenty to hide in secret life of luxury purchases

Couples who keep their purchasing habits from each other risk financial stress, writes ANTHONY KEANE

PURCHASES of little luxuries such as clothes, handbags, meals and entertainment are being hidden from partners as couples avoid discussing their debt and spending.

Research by Suncorp has found that almost one third of Australians in relationships keep luxury purchases secret from their partners.

It has prompted a warning for people to be more open with their partners, to prevent small financial problems spiraling out of control.

Suncorp behavioural economist Phil Slade said people often spent money on luxury items so they felt more in control of their lives.

“But after some time, when their rational brain kicks back in, they tend to feel guilty and therefore hide the purchase – or at least the price of the purchase – from their partner, especially if they have gone into debt to buy it,” he said.

“Debt and spending are highly emotional topics of conversation, and individual expectations on what is a good or bad use of money can differ greatly. In Australia, we tend to think ‘I work hard, I deserve this – my money is my problem’, when in fact we know that finances are a topic that can impact both couples and families.”

Suncorp’s research also found that 32 per cent of people didn’t discuss debt with their partners, and 34 per cent didn’t discuss their salary.

MyBudget founder and director Tammy Barton said when couples fought about purchases, it was often less about the item and more about the fact they were not on the same page. “It’s friction caused by a clash of financial priorities and it’s a good indication that it’s time to sit down and look at what those priorities are,” she said. “Joint finances are always going to be problematic if you don’t have joint priorities. “That’s why budgeting is so useful. After you’ve paid your bills and set aside money for living expenses and savings, your budget shows exactly how much is left in the slush fund for things like clothes and hobbies and entertainment.”

Ms Barton said people still found it difficult to talk about money with their partners.

“The effect is that a lot of people suffer financial stress in silence,” she said. “It also means that a lot of couples are living their lives together but without any financial blueprint in place.

“There are lots of advantages to joint finances, but it’s also important that each partner has some degree of financial autonomy. Sometimes it’s as simple as being able to buy your partner a present without them knowing.”