Gen Z Most Likely To Commit 'Financial Infidelity'—Study

A new study reveals that members of Generation Z are the most likely to conceal their personal finances from a partner or spouse, the consequences of which can be devastating for both the relationship and the couple's financial future.

According to a survey by New York-based consumer financial services firm Bankrate, 67 percent of those aged 18 to 28 in committed relationships have carried out an act of "financial infidelity." This figure decreases in the older age groups, only 54 percent of millennials, 33 percent of Gen Xers and 30 percent of baby boomers having admitted to the same offense.

Why It Matters

Experts see acts of financial infidelity as detrimental to both the health of a relationship and one's own economic stability.

Hidden debts, undisclosed spending, or secret accounts can, as well as undermining a partner's trust, disrupt shared financial plans, such as saving for a home, retirement, or children's education, causing long-term financial strain.

On a broader scale, the widespread prevalence of financial infidelity also reflects gaps in financial literacy and communication, underscoring the need for better education and resources to address these issues.

What To Know

Some 40 percent of Americans in committed relationships have kept a financial secret of some sort, according to Bankrate's study, taken from a YouGov survey of 2,217 adults.

Infractions can range from spending more than a partner would approve of (33 percent), keeping secret debt (23 percent), having a secret credit card (17 percent), a secret savings account (15 percent) or a secret checking account (13 percent).

The high figures persist despite widespread disapproval of financial infidelity, with 38 percent of respondents equating it to actual unfaithfulness and 7 percent deeming it even worse.

Curiously, Gen Zers, the group most likely to conceal some aspect of their finances, are the most likely to consider these acts at least as bad as physical infidelity at 63 percent. This compares to 51 percent of millennials, 45 percent of Gen Xers and 36 percent of boomers.

Separate research by London-based law firm Weightmans found that one in 10 Britons had concealed over £1,000 ($1,245) in savings from their partner, and that instances of financial infidelity had increased 45 percent between 2022 and 2023, which the company ributed to the increasing external pressures put on individuals by inflation and the cost-of-living crisis.

What People Are Saying

Ted Rossman, a senior industry analyst at Bankrate: "Money secrets can undermine a relationship. It's hard enough to meet your financial goals when you're pulling in the same direction. It's almost impossible if you're pulling in opposite directions.

"Being open with your partner about your finances doesn't necessarily mean you need to combine all of your money," Rossman added. "'Yours, mine and ours' is an increasingly popular strategy."

Molly Benjamin, founder of personal finance education website Ladies Finance Club, told The Daily Telegraph: "Financial infidelity can derail a relationship when it's exposed, and the partner who has been 'cheated on' loses all trust in their partner. They wonder 'if my partner lies about this issue, then what else do they lie about?'

"There is potential for it to cross over into financial abuse," Benjamin said. "For example, when a partner takes out a debt in your name, but without your knowledge or permission."

Amanda Rimmer, director and solicitor at VM Family Law, in comments in a 2021 report by U.K.-based Stephensons Solicitors: "While telling a few little white lies to our partners about how much we spend or how much we earn might not seem like a big deal, financial infidelity could be indicative of other trust issues in a relationship."

Emma Collins, partner at U.K. law firm Weightmans, told Newsweek:"External pressures such as the cost-of-living play havoc on modern relationships. Money problems often lead to people making bad choices, deceiving one's partner (intentionally or not) being a common example."

Collins added that financial infidelity can result from a number of factors, including shame at a sudden loss of employment, addiction difficulties or embarrassment over reckless spending, and that the consequences can be severe.

"This deception not only breaches the trust a relationship is built on but can lead to prolonged and painful legal disputes, particularly when large sums or significant debts are concerned," Collins said.

"In the event of a separation or divorce, where full financial disclosure is required, discovering undisclosed debts or assets out of the blue will inevitably complicate proceedings and make settlement much harder to achieve as trust has been immediately eroded."

What Happens Next?

Although financial infidelity is widely disapproved of, macroeconomic conditions may drive some individuals to hide their debts or spending from their partners, as the cost-of-living crisis in the U.S. and persistent high inflation strain personal finances.

Do you have a story we should be covering? Do you have any questions about this article? Contact LiveNews@newsweek.com.

Update 01/28/25 7:10 a.m. ET: This article was updated with comment from Emma Collins of Weightmans law firm.