The need for financial education has never been greater, according to a new survey by unbiased.co.uk; an online platform which connects individuals with trusted and impartial financial advisers, mortgage brokers and accountants.
Whilst people are understandably lacking in confidence regarding major financial decisions like retirement planning and investing, the survey also unearthed some surprising statistics about people’s understanding of their day-to-day finances.
More than half (51%) don’t know how much they still owe on their mortgage, 41% don’t know how much they earn post-tax and 17% don’t know when they are paid.
Why? For many, spiralling costs and economic uncertainty have removed any feeling of control over personal finances, making avoidance preferable to looking at what may be a cold, hard financial reality.
However, the survey revealed that people are now starting to take matters into their own hands to educate themselves about personal finance, actively seeking online information, tools and calculators.
“These statistics reflect what we’ve seen as a business, particularly since the cost of living crisis,” says Nihal Pekbeken, Chief Commercial Officer at Unbiased.
“More and more people are coming to Unbiased with an immediate need for expert advice and jargon-free information, as shown by traffic to our site which is up 120% year on year.
“People who visit our site have varying levels of financial confidence which our content and services address. Whether they’re worried about their fixed rate mortgage coming to an end or just want to start saving, we cut the financial jargon and give them the confidence to make the right financial decisions.”
The survey also showed that:
● 47% of people don’t understand how ISAs work
● Whilst 69% are aware of budgeting apps, only 17% have used one
● 42% of people would feel intimidated to seek advice, even when needed.
“Financial advisers are experts in their field and are used to helping people in all kinds of situations. Especially in these difficult times, a good adviser can help make your money work harder. It’s important that people understand the true value of getting trusted, expert advice.” says Nihal.
Nihal’s top 5 financial confidence tips:
1. Take stock – keep a spending diary for a couple of months to find out where your money is going
2. De-clutter – identify savings and quick wins by double-checking your direct debits and culling any that you no longer need
3. Set a goal – decide on a realistic monthly saving goal and remember that you can start small
4. Be smart – set up an automatic transfer from your current account to a saving account so your monthly savings are ringfenced
5. Seek advice – an independent financial adviser can make sure your money is working as hard as possible