Financial Future Faking: How Empty Promises Are Impacting Finances and Relationships

Ever agreed to a holiday or splurge while deep in your overdraft? You might be “future faking” your finances. This increasingly common behavior, initially recognized in dating, involves making false promises about future financial security to justify present spending or create a false sense of security. Experts warn that this trend is impacting both personal relationships and individual financial well-being, particularly among Gen Z and millennials.

What is Financial Future Faking?

Financial future faking is the act of making promises about shared financial goals – like buying a home, taking a lavish vacation, or achieving long-term financial security – without any real intention or ability to follow through. It’s an offshoot of “future faking,” a psychological manipulation tactic where individuals create emotional intimacy through the promise of a shared future, without genuine commitment . In the financial realm, this can manifest as overspending based on anticipated bonuses, inheritances, or pay raises that aren’t guaranteed.

Why is it on the Rise?

This trend is particularly prevalent among younger generations facing unique economic challenges. Gen Z and millennials are navigating an inflationary period, a competitive job market, and a housing affordability crisis . This economic uncertainty can contribute to a desire to project a more optimistic financial outlook, leading to unrealistic promises and regret.

The Impact on Relationships

Financial disagreements are a leading cause of divorce, and financial future faking exacerbates this issue. According to celebrity divorce attorney Jackie Combs, a lack of financial intimacy, transparency, and alignment are central factors in relationship breakdowns . When money becomes a source of leverage or expectations aren’t clearly articulated, communication fractures and trust erodes. The practice can also lead younger generations to delay or forgo marriage altogether.

Signs You’re Future Faking Your Finances

1. All Talk, No Action: Similar to romantic future fakers, you consistently talk about financial goals (saving for a down payment, paying off debt) but fail to take concrete steps towards achieving them.
2. Spending Before It Lands: You’re already planning how to spend an anticipated bonus, inheritance, or tax refund before it’s actually in your account, potentially relying on credit to cover current expenses.
3. Spending to Keep Up Appearances: You’re using “buy now, pay later” schemes or credit to fund non-essential purchases to maintain a certain lifestyle or image.

How to Stop Future Faking

• Create a Realistic Budget: A well-thought-out budget helps you understand your income and expenses, allowing you to set achievable savings goals.
• Utilize Budgeting Apps: Apps like Snoop, HypeJar, Monzo, Starling, TSB, and Revolut can support you track spending, categorize expenses, and identify areas for savings.
• Automate Savings: Set up automatic transfers from your checking account to your savings account on payday.
• Establish a “Joy Spending” Pot: Allocate a specific amount of money each month for fun purchases to avoid relying on credit.
• Adopt a “One In, One Out” Policy: Before buying something new, sell something you already own to offset the cost.
• Consider Spending Challenges: Try challenges like the 5:2 money plan, where you abstain from spending for two days a week.

Where to Stash Your Cash

Once you’re committed to saving, it’s crucial to find an account that maximizes your returns. Currently, the UK inflation rate is 3.2%. Aim for savings accounts with interest rates exceeding this figure to ensure your money grows in real value. Easy-access savings accounts from challengers like Chase and Cahoot, or the Post Office Online Saver, currently offer competitive rates. For longer-term savings, consider fixed-rate bonds, but be aware of potential penalties for early withdrawal.