Secret Spending Could Lead to Divorce
Many spouses will make purchases and then hide the item or the bank statement from their spouse. Studies show that people do this because they fear their spouse will be angry or disapprove of the spending. However this spending, and particularly repetition of this behavior can cause much damage in a marriage. A new report found that 1 in 10 of separated or divorced couples were impacted by hidden spending. The National Endowment for Financial Education reported that secret spending is responsible for 16% of all divorces.
It is often thought that a person might hide spending because they are attracted to the newest electronics or fashion items but in actuality many people are hiding money to pay their basic living expenses. Many times a spouse will let the bills get behind then use the credit cards to pay the bills. They might often hide this because they are embarrassed that they let the bills get behind.
In the poll by the National Endowment for Financial Education, it was discovered that women are 60% more likely to hide spending from their spouse than men. However, in a relationship where the man is the one hiding the money, he tends to spend more than the women.
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