More than one in seven (15%) feel worried and concerned about their financial situation throughout the day
6th November 2019, 12:45 pm
New research released today reveals that eight million adults in the UK stress and worry about money multiple times a day.
OpenMoney, the online financial advice service, carried out online research with YouGov to better understand what we know about our personal finances and how this impacts our day to day lives.
OpenMoney’s research, released on Stress Awareness Day on Wednesday 6th November, found that more than one in seven (15%) of UK adults worry about their financial situation several times a day. This climbs to over a fifth (22%) for those aged 25-34 and 35-44.
Parents with children aged 18 and under are significantly more stressed about money than the national average, with almost one in four (24%) worrying about their financial situation several times a day. Additionally, parents with three or more children are even more concerned about stretching their cash – almost a third (31%) of these parents worry about money multiple times a day.
Overall, two thirds of people (66%) worry about their finances at least once a month, while 7% more men than women never worry about their finances (26% compared to 19%).
Anthony Morrow, CEO of OpenMoney, said: “It’s alarming to see that so many Brits worry about money throughout the day. We should never underestimate the amount of stress that finances can put on people, especially those with families to support. The financial advice industry has a huge part to pay in making sure we are responsible and offer personalised advice tailored to each individual’s situation, to make sure that everyone who asks for help gets advice that meets their needs.”
OpenMoney’s research found that many struggle with day to day money management, and the vast majority are in the dark about their incomings and outgoings.
According to the research, more than one in eight workers (13%) aren’t confident they know the amount they should be paid each month. This rises to more than one in five of those aged 18-24 (21%). More than one in six (17%) of those responsible for their household’s utility bills are also not confident they know how to save money on utility bills.
When it comes to short-term debt and charges, almost one in ten of those with overdraft facilities (9%) are not confident they know their current overdraft limit. Further, a third of those (32%) are also not confident they know their monthly overdraft fee. This figure rises to four in ten (40%) of those aged 25-34.
Whereas almost four in ten (38%) of those with a credit card, do not know the interest rate on their credit cards and almost seven in ten UK adults (68%) don’t know their credit score overall.
Meanwhile, over a third of those with a savings account/ sash ISA (35%) are not confident they know what interest rate they should receive on their savings and investments, while half of UK workers (51%) are not confident they know their projected pension income.
This lack of confidence and understanding of day to day finances has resulted in one in eight UK adults (12%) feeling less in control of their finances than they did two years ago. This almost doubles to more than one in five (21%) of those aged 35-44.
Morrow added: “A lack of basic financial understanding is undoubtably one of the key reasons so many Brits feel less in control of their finances than they did two years ago. It’s impossible to be in control of something you don’t understand, which is why at OpenMoney we think it’s important to make our financial advice simple and easy to follow.”
“Remember too that if you are struggling financially there are always people you can turn to for advice and support. From charities like Mind, government groups like Citizens Advice, or even your nearest and dearest friends and family, reaching for support when you need it is an essential part of getting your finances under control.”
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