More than one in four Brits have no faith in their ability to manage their money – and are putting off sorting their finances for an average of seven months, research has found.
Over a quarter (26 per cent), of 2,000 adults polled, admitted they don't know where to start when it comes to sorting out their money.
And 27 per cent felt they don't have enough awareness about their personal finances – leaving them feeling anxious and worried.
Ankit Khemka, global general manager at Revolut, which commissioned the research, said: “It’s vital people can have confidence when it comes to managing their money.
“Consumers have had to settle for subpar money services because they’ve been made to think that “good enough” is good enough.
“People are increasingly under financial pressure, but our world is gradually opening back up, and with that comes opportunities for new experiences and futures.”
The research found almost one in five (19 per cent) had thought about changing finance companies in the last 12 months.
Getting a higher interest rate on their savings (41 per cent), being offered money (40 per cent) and cashback offers (33 per cent) were the main priorities when it comes to considering a switch.
People also wanted to see all their financial services in one place, while others felt their bank was too far away from where they live (both 28 per cent).
Just shy of half (45 per cent) said they used online finance tools to manage their money – and, of those, 70 per cent felt managing their cash online was easier than managing physical cash such as notes or coins.
Ankit Khemka said: “The research revealed that 77 per cent feel that managing money online is easier than attending a bank in person.
“Managing your finances digitally offers opportunities in money that have previously not been available to most of us.
“Traditionally they’ve been too expensive, too complicated, or too difficult for us all to access.”
When it comes to the handling of money, reassuringly 42 per cent of people found it easy to set budgets for themselves – compared to just one in ten (nine per cent) who admitted they felt it was difficult.
Having unexpected expenses was the most common cause for finding it difficult to set a budget (42 per cent), ahead of people setting unrealistic targets and giving up (26 per cent).
And one in four (26 per cent) said their irregular income meant it was hard for them to plan financially, according to the OnePoll figures.
In total, half of all respondents (51 per cent) felt they were good at managing their finances, while a third (32 per cent) said they were average when it came to money management.
For those who weren’t feeling confident about their finances, the rising price of goods (46 per cent) and rising energy prices (46 per cent) were the main concerns.
Ankit Khemka, speaking as part of #RevolutYourWayIn, a campaign to show consumers how they can break into previously closed-off worlds of money, added: “As inflation pushes up the prices of daily essentials, we know that money habits have changed this year.
“We’ve seen a 15 per cent increase in the number of customers checking Revolut budgeting tools.
“Individuals are seeking new ways to keep track and manage their money, now more than ever, to boost their money confidence.”
HOW BRITS PLAN TO TAKE MORE OF AN INTEREST IN THEIR FINANCES:
- Check my account balance more – 37 per cent
- Watch more informative programmes about money – 30 per cent
- Do more research online – 26 per cent
- Talk to people who are knowledgeable about money – 25 per cent
- Use tools to help me save money – 24 per cent
- Create a budget online – 22 per cent
- Read personal finance blogs – 21 per cent
- Open a savings account – 19 per cent
- Take a course about finance – 17 per cent
- Open a new account – 17 per cent
- Read personal finance books – 17 per cent
