According to national research conducted by financial experts at Cooper Associates Group, money is one of the greatest sources of stress in relationships.
The Cost of Love survey analyses data provided by 2,000 UK adults between the ages of 18-64, and explores our attitudes towards several key areas, including:
The research highlights the fact that money and relationships don’t always work well together. However, at Cooper Associates Group, we believe that open, honest and real conversations can strengthen both relationships and financial well-being. This report highlights key findings and provides actionable steps for improving financial communication with loved ones.
Attitudes to money: How financial confidence shapes our choices
Money influences many aspects of our lives, from day-to-day decisions to long-term goals. As a result, money has a great influence over our relationships. When it comes to our finances, many suffer from uncertainty, anxiety or lack of clear direction.
A nation lacking financial confidence
The Cost of Love report revealed that financial confidence is low across the UK. Only 34% of respondents felt that their money was in the best shape it could be, compared to 48% admitting to feeling anxious when thinking about their finances. The report showed that typically women feel more financial anxiety than men.
- 16% of UK adults do not know how they will finance their retirement
- 10% of non-retired UK adults do not intend to retire at all
- Only 28% of non-retired UK adults plan to fund their retirement with a personal pension plan.
Simon Dawes, Managing Director of Cooper Associates Wealth Management, emphasises the importance of taking action:
“It’s never too late to start paying into a pension. Even if it doesn’t feel like much initially, the sooner you start the better.”
The Cost of Living Crisis and its effect on relationships
Financial confidence has been further tested by the ongoing cost of living crisis. 75% of UK adults believe that staying on top of personal finances is more critical than ever before, with women feeling this pressure more acutely than men.
- 75% of women and 61% of men express concerns about how the cost of living will impact them.
- 75% of respondents feel the need to take greater control of their financial situation.
Aidan Jones, Chief Executive Officer at Relate, says:
“Now’s a time when people are under real financial pressure, and that’s putting additional strain on many relationships. But whatever difficulties you’re experiencing in your relationships, we can relate and we can help.”
Talking about money and the minefield it poses
Despite financial understanding being a core foundation of relationships, many couples struggle to navigate them. The Cost of Love report found that while most people have spoken to their partner about money, a staggering 17% have never done so. When conversations do arise, they often lead to tension.
- 66% of couples have argued about money, with 21% saying this is a common occurrence.
- One-third (33%) have had a personal relationship end due to money issues
Sharing finances
For many, the idea of sharing finances with a partner can be a daunting prospect. In fact, 34% of those asked believe that finances should not be held jointly with someone else. Further, 27% feel that having a joint account with a spouse or partner would make them feel uneasy, with men feeling more uncomfortable than women.
Common themes that arise around sharing a bank accounts are:
- Lack of control
- Lack of trust
- Bad past experience
- Chance in circumstances
- Need for privacy
- Simpler arrangements
The gender gap: Are men more financially secure?
The Cost of Love Report reveals a significant disparity in financial confidence between men and women, with 74% of men claiming to have a strong understanding of personal finances compared to only 63% of women. Women are generally more likely to feel anxious about finances, less likely to claim to understand finances completely, and generally have lower personal investments.
- 47% of men manage household finances compared to 27% of women.
- Conversely, 33% of women have no involvement at all in their partners financial decisions, compared to only 18% of men.
- The average personal investment is £58,000 for men, compared to £28,000 for women.
- In the event of a separation, 72% of men claim to have a good understanding of what to do compared to only 59% of women.
Seeking financial advice: Who do we trust?
Despite the widespread anxiety and lack of understanding surrounding money, many people are reluctant to seek professional financial advice.
- 65% of respondents trust their partner most when for financial advice
- Only 46% would seek professional advice for mortgage decisions
- Only 49% would consult an expert for long-term savings and pensions advice.
Kate Ward, Senior Financial Adviser at Cooper Associates Wealth Management, explains:
“ A financial adviser can act impartially whilst offering expert knowledge to help manage your money. We’re not afraid to ask the difficult questions, encouraging open and honest conversations.”
Moving forward: How to improve financial conversations in relationships
The Cost of Love Report highlights the fact that love and finances are far from a perfect match. Our dislike of tackling the big financial questions is a key cause for relationship strain or even breakdown. But it doesn’t need to be this way.
Cooper Associates Group is committed to helping people make smart financial decisions through open communication and professional guidance.
Here are three steps that you can take to start improving your financial situation today:
- Take the Cost of Love Quiz
Are you a lover, a fighter or a fence sitter? Take the quiz today to discover your financial communication style and the impact this may be having on your relationship. - Start an open conversation
Start an open an honest conversation about your finances. Ask a few questions to develop a more complete understanding of your partner’s approach to money.
For example:- How much money do you want to have in retirement?
- What is your approach to saving?
- What was your first salary?
- What is the most expensive thing you have ever bought?
- Book a Free Financial Health Check
Apply today for a free, no obligation financial health check with an expert adviser from Cooper Associates Group.
