According to research, women are more likely to know their family's true financial position. But is that a healthy way to operate?
A new survey has revealed an interesting trend in how family budgets are run. Despite men thinking otherwise, in the home, it’s usually women who know how much cash there is to spend or how much in debt the family is in.
But is this a dangerous way to run finances? Is one partner having the reins sensible or are families sleepwalking into debt problems?
Couples confused over cash
1,200 couples were asked about their household finances.
Interestingly over two thirds of men (68%) said they control the dosh, contradicting the 63% of women who say they do.
Anyone can see that doesn’t add up. It isn’t a case of a harmonious joint effort either, as only 19% of men and a quarter of women say they share the job.
Put to the test
So to shed some light on it, people were asked to prove their claim by quoting how much cash was in the bank and owed in credit card debt.
To which 44% of women could accurately answer, compared to 33% of men.
[SPOTLIGHT]So despite men thinking they have a full grasp on money, it appears they are dangerously in the dark and it’s their partners who wear the financial trousers.
Free debt help
As the UK’s leading debt help charity we have vast experience providing free debt help to people in a variety of situations.
In recent years we’ve had more women coming to us for advice (53% last year), with lower levels of debt than their male counterparts.
So it does seem that women are more money aware; they have a better understanding of their situation and are more likely to seek debt help than men.
A debt problem shared is a problem halved
In reality it’s irrelevant whether it’s men or women who come out on top in the financial battle of the sexes.
When it comes to money we would urge couples to be open and honest with each other. If only one member of a couple has a sound grasp of the cash flow, it can be dangerous for a number of reasons.
A financial shock like illness or unemployment can happen to anyone, which can then devastate a couple’s ability to meet their obligations. The impact of a sudden change would be even more severe if one person was in the dark about their money.
Also there are the implications of having debt problems with a joint loan. If you have a debt with someone else you are financially linked to that other person. You are jointly liable for the whole amount and can be pursued for all of it if the other person does not pay. Your credit file and ability to get credit in the future is affected by any payment problems.
These are all reasons why it’s a good idea to be fully aware of your household finances.
Improve your budgeting with lovemoney.com's MoneyTrack tool
Added stress
Also, from speaking to clients we know that keeping debt problems a secret can place considerable stress on a relationship. One partner may have a natural grasp of figures and prefer to manage the budget, but when dealing with debt honesty is always best.
Expert debt help can help determine the best solution for you and help you gain control of your situation and move forwards. But if your partner is unaware of the problems you’re having, you may feel under additional pressure to hide letters or dodge calls from creditors.
If you face the problem together you’ll be in a much stronger position. In a recent survey 88% of our clients said their family life was better after they contacted us.
Don’t wait
We know that 45% people in debt wait over a year before seeking debt help. The sooner you seek help the easier it is to provide the best debt solution.
If you’re struggling you can sit down together and use our online debt advice Debt Remedy tool – you’ll get a free, confidential debt advice session with a personal action plan clearly explaining what to do next.