A recent news report by the Times found that one in five men have a savings account that their partner does not know about, proof that people are hiding their money – to make the most of your family’s assets you need to be open about them and you have to use them to their full in a decent financial vehicle.

The newspaper said husbands and boyfriends are keeping the money a secret because they think their income is none of their partner’s business and some also keep it hidden for safety in case the relationship does not work out.

This is not a financially prudent idea – money need never be a secret issue between couples, in fact those couples who live together can use their joint monies to get hold of a cheaper mortgage through offset.

According to the study, a man’s clandestine savings account contained an average of just over £2,000 – enough to set up a decent nest egg to help you reduce debts each month. And the more that’s saved alongside that will only reduce mortgage payments further.

The report said more than a fifth of male respondents said that they were concerned partners might not approve of their investments – but if they invested in an offset mortgage their partner would be ecstatic because it would mean their monthly obligations are reduced.

Doug Strachan, financial services director at the Post Office, said in the report: “While the recession has been a wake-up call for many, forcing them to rethink their attitude to money and debt, our research shows that many are still making life-changing choices without consulting those closest to them.

“Financial decisions such as taking out a loan or mortgage represent a significant commitment that, in many cases, will affect your life for many years. The fact that one in six people has kept this decision from partners or family is worrying. When it comes to money, being open and honest with family and partners will help keep financial issues under control and ultimately minimise the risk of building up debts and damaging personal relationships.”

SOURCE: The Times, 10/04/10

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