Clients being completely open about their finances is the only way to build a truly holistic picture of how to help them achieve their financial goals, but what if someone’s keeping secrets from them?
While they may believe that they have shared all there is to know, a new survey from Bankrate finds a high level of "financial infidelity," or spouses and partners keeping secrets about their financial situation.
It appears to be common, with more than two in five respondents who are married, in a civil partnership, or living with a partner admitting to keeping a financial secret from their partner now or in the past, often because they just don’t talk about finances with loved ones.
Spending more than their partner would be comfortable with (30%), holding secret debt (23%), and having a secret savings account (19%), credit card (18%), or checking account (17%) are the most likely financial secrets kept from partners.
Keeping secrets such as these are more prevalent among younger Americans. While around one-third of Gen Xers and boomers have at least one financial secret, this rises to 57% among millennials and 67% among Gen Zs.
Those who have an annual household income below $100,000 are most likely to commit financial infidelity, around half compared to a third of those with higher incomes.
The research found that 37% of those that have financial secrets do so for privacy or to have control over their own finances.
But for many respondents the subject never came up (33%), highlighting a lack of open communication about financial matters. Being embarrassed about not being on top of their finances, not trusting their partner with money, and due to money being used for an addiction were all often cited reasons.
“Financial secrets can take on a life of their own and undermine the relationship. In years of studying this, we've often found that the breach of trust has a greater impact than the dollars and cents,” Bankrate senior industry analyst Ted Rossman. “If you have a secret spending habit or undisclosed debt or a credit card or bank account that your spouse doesn't know about, I think it's best to come clean right away.”
Medicare scam, pandemic benefit theft, offshore tax evasion — federal prosecutors are casting a wide net.
Report finds that pension income acts as a financial lifeline for retirees facing late-life shocks and raises urgent questions about the DC-only future.
Nine-month electronic trading freeze and share lending program at the center of dismissed claim.
Meanwhile, Rossby Financial's leadership buildout rolls on with a new COO appointment as Balefire Wealth welcomes a distinguished retirement specialist to its national network.
With a smaller group of companies driving stock market performance, advisors must work more intentionally to manage concentration risks within client portfolios.
As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management
Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline
