Millions of Australians have been dumped by a romantic partner due to their financial struggles amid the cost-of-living crisis.
An estimated 16% of Australians, equivalent to a staggering 3.2 million people, have endured the pain of a breakup due to money troubles, according to comparison website Finder.
Among the myriad of reasons cited for these separations, 6% reported being dumped because of unpaid debts, while 5% attributed their breakup to low income or a lack of savings.
Additionally, 5% of survey respondents, about 1 million people, admitted that their poor understanding of personal finances led to the demise of their relationships.
Sarah Megginson, a personal finance expert at Finder, said Money is one of the biggest stressors on relationships, causing significant tension and disagreements between partners.
“From new relationships to couples who have been married for decades, money can be the cause of significant stress and disagreements between partners and it can actually be a major factor in breakups,” she said.
“Nothing causes tension quite like misaligned money goals and over the past 12 months, this tension has been rising due to the cost of living pressures.”
Megginson urged couples to engage in open conversations about money early on in their relationships, advising them to be transparent about any financial challenges they may face.
She stressed the importance of aligning money goals and maintaining open communication, especially before making significant joint financial decisions.
The research also revealed that financial incompatibility was particularly prevalent among Generation Z, with 29% of individuals aged 18-24 admitting to being dumped based on their finances.
Megginson emphasised the necessity of clear communication and setting expectations when partners have differing money habits and attitudes.
“People with wildly different money habits and attitudes can co-exist – but only if you clearly communicate and set expectations,” Megginson said.
She warned against the buildup of resentment when one partner feels burdened by frequently bailing out the other financially, emphasising the importance of aligning financial priorities even if couples do not merge their bank accounts.
