What’s worse than having an affair? Lying about money
A new Australian survey revealed a lack of transparency about finances had potential to cause more harm to relationships than an extramarital romantic liaison
A new Australian survey revealed a lack of transparency about finances had potential to cause more harm to relationships than an extramarital romantic liaison
One in five Australians think lying to a partner about spending or income is worse than physically cheating or having an affair. A Finder survey of 1,096 people found Baby Boomers are the most worried about financial lies in a relationship, with 23 percent feeling concerned about it. This compares to 22 percent of millennials, 21 percent of Gen X and 18 percent of Gen Y.
Sarah Megginson, Finder’s personal finance expert, said there can be major fallout from financial secrets.
“Purposefully hiding information about money is a major red flag in relationships, especially when couples share finances,” she said. “Financial lies can be quite destructive and leave people feeling betrayed and untrusting. As our research shows, it can cause even more pain than a romantic affair.”
Ms Megginson said people lie about money for several reasons.
“For some people, the motivation to be dishonest is born out of embarrassment over a secret debt or an addiction that’s gotten out of control,” she said. “For others, it’s less about shame, and more about wanting to be prepared with a financial safety net in the event the relationship ends poorly, so they might have a ‘secret’ account they haven’t told you about.”
Keeping finances separate is a rising trend among couples in Australia, even if they are married with children. St George Bank surveyed 1,500 parents in 2018 and discovered only 51 percent combined their incomes in joint accounts, and 37 percent kept their money separate. The research also showed one in four people were keeping a financial secret. Women were more likely to keep a large debt secret and men were more likely to have a private savings account. Other financial indiscretions people were keeping to themselves included a large purchase or a secret credit card.
Research by Relationships Australia shows many couples are not having conversations about financial arrangements before entering into committed relationships. Four in 10 people did not discuss how their personal incomes would be shared before they committed to their partner. A majority of women (74 percent) and men (69 percent) reported no discussion about how finances would be divided if the relationship ended.
Ms Megginson said money was a source of conflict for many couples, with 40 percent of survey respondents saying the conflict related to their partners overspending. She encouraged couples to have regular, honest conversations. “If you’re hiding something, consider coming clean sooner than later. The longer it goes on, the bigger the problem can grow and the more elaborate your lies are likely to become.
“Financial trust is really crucial in a relationship, so it’s ideal if you can talk openly about money and get on the same page, and ideally support each other to reach financial goals together. If you feel like you are being taken advantage of or if you can’t leave a relationship because of financial issues, contact the National Debt Helpline,” she said.
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U.K.-listed mining giant’s chairman says the proposal undervalues the company
LONDON— Anglo American on Friday rejected a $39 billion takeover proposal from rival BHP, saying the bid “significantly undervalues” the company and setting the stage for a potential bidding war.
London-listed Anglo American said the unsolicited proposal, which was made earlier this month and which became public this week, features an unattractive structure that is too uncertain and complex .
Anglo American Chairman Stuart Chambers said the company stands to benefit from its portfolio of assets, including copper, that are likely to experience growth from trends around the energy transition. BHP’s bid, Chambers said, is opportunistic and dilutive for shareholders.
BHP’s all-share offer valued Anglo American at about $38.8 billion, and would have been contingent upon Anglo American spinning off shareholdings in two South African-listed units. The proposal represented a premium of about 31%, not including the South African-listed units, based on Tuesday’s closing prices.
Some analysts had predicted Anglo would find the bid too low and are expecting BHP to return with another. BHP has until May 22 to make a firm offer, though the deadline can be extended. Industry participants expect other large miners to also take a run at Anglo, whose share price has dropped since 2022 as lower commodity prices have ripped through the industry.
A tie-up between BHP and Anglo American, which would be the largest mining deal on record, would illustrate the growing importance of copper, a metal essential to clean-energy products , to a sector that has long relied on Chinese industrialisation to boost profits.
Copper represents some 30% of Anglo American’s output, while BHP counts a majority stake in Chile’s Escondida, the world’s biggest copper mine, among its assets. BHP bought Australian copper-and-gold miner Oz Minerals for $6.34 billion in May last year, representing its biggest acquisition since 2011.
Copper prices are up some 15% so far this year, reflecting expectations that demand for the metal will rise as the world decarbonises and supply will be constrained. Electric vehicles and wind farms use copper in much greater quantities than gasoline-powered cars and coal-fired power stations.
Anglo American has been reviewing its assets in recent months, and has held early conversations with potential buyers for its storied De Beers diamond unit, which it values at more than $7 billion, The Wall Street Journal reported Thursday.
Activist firm Elliott Investment Management holds a stake in Anglo American worth roughly $1 billion, accumulated over several months and before BHP’s move on the miner, according to a person familiar with the matter. The firm is widely known for its campaigns to push companies for change to boost their stock prices. Its view of the Anglo American holding couldn’t be learned.
That said, a jump in Anglo American’s share price following BHP’s takeover offer indicates Elliott has already profited from its holding, potentially reducing any incentive for it to take any action until the outcome of BHP’s bid becomes clearer.
Anglo’s stock on Friday traded above the implied value of BHP’s offer, indicating the market expects a higher bid to emerge.
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