How to hide money from your partner

Kylie Ofiu Updated February 2, 2013, 8:00 am

Setting up a secret squirrel fund is easy.

Squirrel funds are a hot topic among many women when discussing finances and relationships.

Many women don't feel safe in a relationship unless they know they have the financial capacity to escape if they had to.

A squirrel fund is money kept in a separate account “squirrelled away” for just in case – just in case the marriage/relationship breaks down.

On one hand some feel that having a squirrel fund is like entering a relationship with one foot out the door. Others feel it is like a prenup or insurance.

No one knows what will happen in the future and many have been saved financially, both still in their relationships and those leaving, thanks to having a squirrel fund.

Related: Love and joint bank accounts, when to pop the question

It is up to you how you set it up. In a healthy, balanced relationship it is perfectly OK to have your own personal accounts with disposable funds you can spend on yourself however you like. Everyone should have play money and what you do with it is up to you. If you choose to open a high interest savings account and save some of that money, it’s your choice.

Having a squirrel fund isn’t necessarily planning for the relationship to end, but rather planning for the “what if’s” of life. Squirrel funds have been pulled out when husbands or partners have lost their jobs or when one partner passes away or gets really sick. It is not just for a relationship ending.

Related: The joint-property checklist. Think before you sign

If you feel uncomfortable having an account that your partner doesn’t know about, it doesn’t have to be hidden. You could simply say you are saving some of your splash cash or sanity money. If you are in a trusting relationship it won’t be a problem.

To set up a squirrel fund:

1. Select a high interest saving account, preferably with a bank separate to your main one. Pick one with a high interest rate that pays you to save like the Rabo Direct Saver with easy access to your funds online and attached to an every day account with no fees, so you can transfer the money and access it quickly from any ATM.

2. Arrange for bank statements to be sent digitally to a private email account or keep them at the bank and collect instead of having them posted out to you, they can arrange this for you. Or have them sent to an alternative address like your work or parents address.

3. Set up a way to get money in there. You could set up a direct debit and name it something obscure, or if your bank has a branch you could simply plan to deposit $10 a week or whatever you choose after you finish shopping.

4. Keep it up. It is easy to set up and start a savings plan but also very easy to stop, especially with a squirrel fund as there is no specific goal in mind generally, but just wanting to save in general. Even $10 a week is better than nothing at all and will eventually build up over time.

Just imagine, even if you never need to leave your relationship, how much you could save over 10, 20 or 30 years. What an amazing holiday or something you and your partner could have with that money.

Source: Kylie Ofiu is the author of 365 Ways To Make Money, a finance blogger, freelance writer and public speaker. She shares real ways to make and save money on her blog

Was this article useful? Use the feedback button below or comment and share your tips on our facebook page.

Great reads:
Debt Consolidation: How to be debt free, faster.
10 Ways to lower your rent
Earn $500 in 20 minutes
10 things you should never buy new
Best smartphone deals you'll find online

Moneyhound Product Picks this Month:



Get the latest deals that could save you money on your monthly bills

Help me find a savings account

  • Account type

  • State/Territory

  • Anytime access accounts

  • Fixed-term deposit accounts

Help me Save

Use our savings account interest calculator

      • Interest rate (APR*) used : 5.2%

      *APR and APR term suggestions are based on market competitive products listed on this page. Fees and charges are payable. Read the disclaimer

      Moneyhound helps you compare 405 saving accounts from 81 trusted issuers

      Savings Accounts Latest News

      Compare more products and services

      Disclaimer: Yahoo7 has partnered with RateCity and WhistleOut for the provision of pricing information for financial, telecoms products. Yahoo7 has partnered with Lifebroker to provide information regarding life risk products and with RateCity to provide information on general insurance products. Yahoo7 has no direct affiliation with any finance, telecom or energy institutions listed here to promote this content. The content of this website has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should not acquire any financial products before taking into account whether your selected products are appropriate to your personal circumstances, having regard to your own objectives, financial situation and needs. Whilst reasonable efforts are maintained to provide accurate, true and correct information, it is advised that you confirm the terms of any product or contract and consult the product disclosure statement before making a decision to apply to any product issuer.

      Whilst Yahoo7 Moneyhound attempts to provide information regarding as many products in the market as is possible, not all available products are compared on this site.The comparison rates for home loans are based on secured credit of $150,000 and a term of 25 years. The comparison rates for car and personal loans are based on credit of $10,000 and a term of 3 years. WARNING: The comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Read more on our disclaimers here.

      Yahoo7 Money Hound Pty Ltd | ACN: 151 232 450 | ABN: 20 151 232 450
      AFSL: 407341 | ACL: 407723 | COSL: M0011954
      Financial Services Guide