Finance guru and former Sunrise host David Koch says many Australians are hiding their bad spending habits from partners as money becomes tight in the cost-of-living crisis.
Koch spoke out after new Compare the Market data showed one in three have lied to their partner about their finances.
This is especially so for younger couples struggling with surging rents or mortgage repayments.
‘One thing that shocks a lot of people I speak to is how many of us keep financial secrets from loved ones,’ Kochie told Daily Mail Australia.
‘There’s a real push right now for people to save and stretch their money further and I’d hedge a bet that many of us feel shame or guilt for splashing on that morning coffee, buying a sneaky takeaway meal at lunch or even splurging on a new outfit.
‘But being dishonest with our partners is an unhealthy habit that can have serious consequences if issues are left to snowball.’
An alarming one in five Australians are also lying about gambling, based on the survey of more than 1,000 adults in June.
Koch, who is now Compare the Market’s research director, said gambling debts could prevent a couple qualifying for a home loan, with banks having access to applicants’ spending habits and debts.
Finance guru and former Sunrise host David Koch says too many Australians are hiding their bad spending habits from partners (he is pictured with wife Libby)
‘Betting, gaming and excessive spending on lotteries can also hurt your chances of getting a home loan as many lenders see this as risky spending that could mean you’re not able to service a loan in future,’ he said.
A similar proportion are also concealing their true personal debt levels from their partners.
More than a quarter of respondents lied about spending money on treats including coffee and takeaway food while a similar number lied about splurging out on clothes.
One in eight Australians were also lying about how much they earned.
‘There can be a real shame around money and some people try to protect their loved ones by pretending their finances are in a better shape than they really are,’ Koch said.
‘I don’t know where this mentality came from, but we need to do a better job of reaching out for help if we need it.’
Lying could also be particularly detrimental if a couple was saving up for something like a mortgage deposit or a new car.
He has spoken out after new Compare the Market data showed one in three Aussies had lied to their partner about their finances as the cost-of-living crisis puts strain on relationships
‘If you have money problems, is it fair to hide them from your partner, especially if you are pooling money for a house deposit or other shared goal?’
‘If you have a lot of debt, and you have a partner or children that are financially dependent on you, you could find yourself having to make some very difficult and stressful choices that shouldn’t be dealt with alone,’ Koch said.
The financial stress on Australians is anticipated to increase, with pressure on the Reserve Bank to further increase interest rates when it next meets to curb inflation.
Latest figures showed the rate of inflation rising to 4 per cent in the month to May, while the RBA is targeting a maximunm of 3 per cent.
While rates have not risen since reaching a cash rate of 4.35 per cent in November, home borrowers have copped the most aggressive rate rises since the late 1980s, causing a 68 per cent surge in monthly variable mortgage payments.
Renters are doing it even tougher, with Australia suffering from a housing shortage fuelled by a record immigration intake.
Electricity bills are also rising at a rate that’s higher than overall inflation, as wages barely keep pace with the consumer price index.
Source: David ‘Kochie’ Koch exposes the shameful money mistake many Aussies are making when it
