Cash and savings will take priority in the coming months as workers and consumers attempt to adjust to an economy with limited state support. Rishi Sunak has launched several support schemes in recent months but these will not be extended as we move into 2021.
To handle the complexities of financial management, financial “literacy” is needed but new research reveals a worrying lack of this among the UK’s savers.
Nudge, the financial wellbeing company, recently commissioned two surveys of 2046 UK employees and 251 HR managers on financial wellbeing.
The research revealed that 52 percent of UK workers worry about money at least once a week, with 18 percent doing so on a daily basis.
The importance of money management is also prevalent among the nation’s workers, with 85 percent of respondents considering it important to have the skills and knowledge necessary to effectively manage their finance.
Just over 10 percent of the respondents shared that they didn’t know who to trust when it comes to financial advice, with the same number of people explaining that they felt overwhelmed by just how much information is out there.
Around a third explained that they turned to family or online resources for financial advice and information but only a fraction of the respondents felt like they could raise their concerns with their employer.
Tim Perkins, the co-founder of Nudge, provided the following comments along with the research: “This year’s events have had a huge impact on many aspects of our lives, including our finances.
“While plenty is out of our hands, one thing we absolutely can control is the way we manage our money – and this can help alleviate stress and make our cash go further.
“But a really worrying number of people don’t feel confident in their skills and knowledge when it comes to managing their money.
“This knowledge is especially critical in tougher times.”
Tim went on to provide a warning that should be heeded as we move into the winter months: “Poor financial literacy is a ticking timebomb which will only exacerbate the problems people are facing right now – whether that’s related to health, relationships or mental wellbeing. “Anyone who is struggling to control their finances should feel empowered to seek support, and this can come from a range of sources including employers, who are perfectly placed to help – and it’s vitally important that they do so before it’s too late.”
These sentiments were also shared by Susanne Jacobs, the founder of theseven.org.uk: “Financial literacy plays a huge part in our capacity to perform and stay well.
“Having the right skills and knowledge to manage our money grants us a sense of agency and allows us greater autonomy in how we live our lives.
“Without these, we can be trapped by our circumstances with little ability to carve out our chosen path – and this depletes our energy, motivation and performance, to the detriment of every aspect of our lives.
“With the pandemic amplifying financial concerns, we need to act now to protect our financial – and general – wellbeing.”