Millions avoiding sorting out finances for lack of 'cash confidence' | The Sun

MILLIONS are avoiding sorting out their finances because they lack financial knowledge or 'cash confidence'.

Out of 2,000 adults, 27% have no faith in their ability to manage money.

As the cost of living continues to soar, many are scrambling for money-saving bill hacks and financial help, but it can be difficult to find tips that work for you.

With this in mind, 26% of a surveyed group admitted they weren't sure where to start when it comes to sorting out their money.

On average, adults who were putting off sorting out their finances were leaving it for seven months.

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.

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"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%) had thought about changing finance companies in the last 12 months.

Getting a higher interest rate on their savings (41%), being offered money (40%) and cashback offers (33%) were the main priorities when it comes to considering a switch.

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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%).

Just shy of half (45%) said they used online finance tools to manage their money, and 70% of those who used online finance tools 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% of people found it easy to set budgets for themselves, compared to few who admitted they felt it was difficult.

Having unexpected expenses was the most common cause for finding it difficult to set a budget (42%), ahead of people setting unrealistic targets and giving up (26%).

And 26% said their irregular income meant it was hard for them to plan financially, according to the OnePoll figures.

In total, 51% of all respondents felt they were good at managing their finances, while 32% 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%) and rising energy prices (46%) 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% 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 plans to take more of an interest in their finances

  • Check my account balance more – 37%
  • Watch more informative programmes about money – 30%
  • Do more research online – 26%
  • Talk to people who are knowledgeable about money- 25%
  • Use tools to help me save money – 24%
  • Create a budget online – 22%
  • Read personal finance blogs – 21%
  • Open a savings account – 19%
  • Take a course about finance – 17%
  • Open a new account – 17%
  • Read personal finance books – 17%

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But if you're worried about being able to afford bills comfortably this winter, there are plenty of organisations and charities here to help. Here's a few to start you off:

  • StepChange: 0800 138 1111
  • Citizens Advice: 0808 223 1133
  • National Debtline: 0808 808 4000

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