Poppy Johnston* says people are keeping the truth of their about how much they earn and how much they owe under wraps.
Many of us are guilty of inflating the size of our savings when talking to our friends, family and partners.
In fact, a surprising number of Aussies are dishonest about money, with a nationally representative survey by Finder revealing one in four admitted to lying about their finances in some way.
The amount we had in savings was our most common financial fib, with as many as 13 per cent of us lying about that figure.
People also fibbed about how much they earned (9 per cent) and how far they were in the red (8 per cent).
Another 5 per cent lied about how well their investments were doing.
While most people (44 per cent) admitted lying to their friends about money, a concerning 29 per cent were not honest with their partner about their financial situation.
Rebecca Pike, money expert at Finder, said in some instances, people were putting their relationships in jeopardy by not telling the truth about their money circumstances.
“Dishonesty around finances is a slippery slope and the effects can be devastating,” Pike said.
She said people should try to educate themselves about personal finance so they didn’t need to resort to lies.
“From chipping away at debt, to implementing a budget, being proactive with your finances will help you make strides in your financial life and feel more confident in your situation,” Pike said.
“Having realistic conversations about your financial circumstances can also be really helpful in sharing and learning savings tips.
“The more we talk about money, the less scary it becomes.”
While lying to your partner about money clearly erodes trust in your relationship, fibbing to your friends can also have consequences.
It can even lead you into debt.
Almost 47 per cent of us admitted to overspending on friends via holidays, weddings or meals out due to social pressure.
*Poppy Johnston is a journalist at Yahoo Finance Australia covering personal finance, property, careers, investing and economics. She can be contacted at [email protected]
This article first appeared at au.finance.yahoo.com.
