A new survey by investment platform AJ Bell and research agency Opinium has found that over half of all adults in a relationship engage in secret spending. This furtive fiscal outflow can lead to financial stress and resentment between partners. The results of the annual survey, which collected responses from 4,000 American adults, shine a light on the increasing trend of secret spending, especially among younger generations.
On average, men have spent in secret £2,545 over the last 12 months. At the same time, women claimed for unknown costs, which came to an average of £1,769. The results show that clothing was the most frequently bought item without partners’ awareness. Interestingly enough, 20% of men and 35% of women confessed to hiding their clothing purchases.
Gen Zers, those born between 1997 and 2012, are known as a generation of secret spenders. Over the last calendar year, they made on average an incredible £4,303 in secretly hidden costs. This cohort showed a significant tendency toward secrecy about their spending habits over older generations.
Silk believes men frequently engage in clandestine vice spending—purchasing alcohol and cigarettes, for example. In reality, 19% of men confess to buying these items without partners knowing. In comparison, those aged 55+ indicated markedly fewer hidden costs at an average of only £384.
AJ Bell’s personal finance director Laura Suter pointed out the impact of these hidden spending habits on relationship power dynamics.
“This is likely to be one of the quickest routes to financial friction in a couple.” – Laura Suter
Suter noted that small-scale purchases typically would not need to be disclosed. It’s important to be frank about major expenses or established practices to preempt any money fights down the line.
“Ultimately, you don’t have to report every time you buy a coffee or get your nails done to your partner, but major costs, recurring habits or anything that risks derailing a joint financial plan should be on the table.” – Laura Suter
Our survey results show big discrepancies between how much cities are spending and how much they say they’re spending. These variations can make it difficult to budget and plan for future fiscal needs. According to Suter, this lack of transparency makes it “difficult to budget properly or plan for longer-term goals like buying a home, building an emergency pot or saving for retirement.”
Partners need to have transparent conversations about how they spend money. This expanded approach can help build healthier financial partnerships. Yet secret spending is increasing, much of it undisclosed to the American public. Before jumping into the deep end, engage in some open discussion about spending habits to avoid misunderstandings and financial fights later on.