Millions Fib About Their Finances

Banking and Borrowing

19 October 2007 | 0 Comments

Don't lie about your financial problems! If you talk honestly to friends and family about your financial problems, you've taken the first step towards turning things around.

Almost a quarter of young Britons have lied about their debt situation - and people of all ages are liable to fib about money, according to a Fool study published today.The survey, which quizzed over 1,500 UK adults, is part of our 'Let's Talk About Money' campaign, which aims to get Brits talking about the taboo topic and managing their money sensibly. The study revealed that millions are lying about their finances, hiding the cost of pricey purchases from their nearest and dearest and even refusing to open their own bank statements.It's a situation many of us are all too familiar with. After leaving university, I spent a whole summer trying not to worry my parents, being vague about my overdraft and assuring them I was coping while tiptoeing off to the bank to renegotiate loans and plead for extensions. A friend of mine only found out about her husband's new laptop when she stumbled across one of his credit card bills (apparently he'd hidden the computer under the bed). This sort of sneaking about and financial dishonesty can make stress levels rocket, even if it's done with the best of intentions. Some 20 per cent of those questioned said that they get so stressed about their finances they "want to disappear". And as most of us will have discovered, sweeping it all under the carpet only makes it worse.One in six people said they'd lied about their debt situation. The age group most likely to tell financial fibs was 25 to 34-year-olds, with 23 per cent admitting to having done so. For many, it's a time when a difficult financial balance needs to be struck: thousands are fairly recent graduates with big student debts still outstanding, who have not had time to build up a savings `cushion' and who are now struggling to get on the infamous housing ladder.Young people also seem to be the most likely to lie about the cost of luxury items, with almost half (43 per cent) of 18 to 24-year-olds telling others their purchases were cheaper than they actually were.There were also some interesting differences between the sexes. Some 34 per cent of the women questioned claiming to pull the wool over people's eyes about high prices, compared to just 21 per cent of men. However, psychologist Donna Dawson claims that we're all to blame for this sort of female dishonesty. She points out that "women lie more than men because society has already deemed women to be the weaker sex when it comes to shopping, and no individual woman likes to be branded with a negative stereotype!".Many people also seem to be scared of their financial situation, a sort of sinister, lurking bogeyman which will pounce if they look at it too closely. Some 12 per cent of those quizzed deliberately don't open bank statements or other financial documents. So why do so many of us lie to ourselves and each other about the money in our pocket? According to Ms Dawson, it's because our financial wealth is perceived to reflect our social and mental health. She explains: "It isn't surprising that `money' is such an emotive issue, because how we manage our money is a reflection of how well we're seen to be coping with life in general. "We lie about our financial problems in order to save face, and to avoid being regarded as greedy, disorganised, naïve or out-of-control - all traits associated with over-spending or financial mismanagement."However, hiding bills and putting on a brave face won't impress your creditors or gain you the respect of family and friends. At Fool.co.uk we'd encourage the nation to be honest about their money matters. Chances are you'll be able to gain tips from others to help reduce debt and start saving.If you're struggling with debt, visit our Dealing With Debt discussion board where you can talk to sympathetic Fools about your debt situation. You'll probably receive good practical advice and some emotional support too.More: Money Is A More Taboo Subject Than Politics | Get Out Of Debt

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