Lack financial nous = lack financially
This week’s newsletter takes its cue from new research that puts a pounds-and-pence price tag on the average person’s lack of financial nous.
According to a recent Moneybox study, nearly two thirds of UK adults say they have missed financial opportunities in life due to low knowledge, confidence or both.
Moneybox maths says this lack of financial skill costs circa £65,000 in a lifetime.
In contrast, the same study found that financially confident people (representing one third of UK adults) are an average of £85,000 better off net-worth-wise than the above group.
Why d’we lack financial literacy?
Education, really. Or a lack of. While most big questions are explainable in hundreds and thousands of factors big and small, this one’s fairly simple.
We aren’t taught money in school. APR, interest rates, investing, saving, debt … the language of money isn’t on the curriculum.
Yes, some folks are well-stewarded by parents or family, and others are motivated self-starters, but the majority just sort of hit adulthood and BAM! It’s sink or swim stuff …
We know from the data, and experience, that just one in ten people will ever consult a financial professional. The rest go it alone. There’s plenty of learning resources out there, but knowing who and what to trust can be a minefield. It takes sticking power, too.
Solutions please
If the Moneybox figures are correct then growing in financial confidence could add some £85,000 to your net worth over your lifetime. That’s an incentive …
But gaining confidence is also important beyond just pounds and pence. Our mission here at Money Means is to help people like you to grow in confidence so you have control over your financial present and future too.
That peace-of-mind is priceless so here are three top tips to move closer to confidence:
Tips / Actions:
- Block out a regular, dedicated time to focus on your finances. Money plays such a key role in life it deserves this time. So do you. Neglecting this step causes harm.
- Challenge yourself to talk more openly about money. Money has a stigma attached and the best antidote is talking. Share chats, tips, ideas and let’s get comfortable.
- Sign up to the Money Means beta waitlist and let us help you …
Can’t recommend #3 enough. We look forward to your names hitting the waitlist.