Budgeting, saving and investments … again
Investments, savings, and budgeting are the UK’s chief financial pain points, as revealed by the first Money Means Solutions survey.
The qualitative survey, an online focus group probing 100 UK adults on money matters, drilled into attitudes to money, people’s self-perceived shortcomings in money management, opinions on tools and tech and how current high prices are impacting life.
Survey results show that well over half (56%) of respondents crave help in one or more money fundamentals. Areas such as budgeting, savings, investments, pensions and insurance. Further, an alarming 11% say they ‘do nothing’ proactive to manage their money except ‘get stressed’ about it.
Respondents do show a desire to be more proactive and exert more control over their money, yet a recurring key question is how to do that? It seems we’re increasingly happy for technology to lead us but there’s also a feeling that the tools don’t go far enough …
Show and tell please …
While a significant proportions (at least 17%) of survey respondents say they use budgeting and banking apps, people are also quick to point out the limitations of those platforms.
The main gripe? Users want apps to do more than just show. Users want show and tell.
Over one in three (34%) want budgeting apps to deliver more instructions and insights (from macroeconomic info to investment advice and market forecasting), while others pine for in-app comparison tools to get a better view on their options.
A minority also suggest that apps should do more to motivate and inspire their users.
The sense is that people want to feel empowered, informed and better able to execute follow up actions. Folks seem happy enough for big tech to occupy that role yet, right now, many suggest that budgeting apps are almost glorified pen-and-paper or spreadsheets … incidentally the budgeting formats still favoured by one in 12 people.
Facilitator, inhibitor, stressor
When asked to list their main money stresses, respondents roughly fell into thirds. One third claimed there’s no significant financial stress in their lives. Another third said making ends meet in the cost-of-living crisis is the stress of all stresses.
But the third third reflects something financial planners see every day: when asked about their primary financial stress, the third third talked about money as it relates to specific life issues …
Childcare woes, divorce, house moves, side hustles, travel dreams, personal habits … respondents were asked about money stresses, yet a third responded in life stresses.
And that’s so important. Money chat prompts an emotional / life response because money is wrapped around so much of what we do and what matters most.
It’s a facilitator, an inhibitor and a stressor.
Hence financial planners’ schtick: learning to manage money isn’t just about pounds and pence but a key move towards living life with more control, peace and perspective.
Money means solutions
Insights uncovered through The Money Means Solutions survey aren’t necessarily new but they underscore our message: money means more than numbers. Connecting your money to your life is one of the best steps anyone can take.
Not for the first time the problems are evident but the vacuum is in the solutions department. Still, we’re doing what we can and The Money Means Book dedicates whole chapters to the money fundamentals outlined in this newsletter.
Recent newsletters have the skinny on savings accounts (click), and we recently listed out steps to help you take control of your pension (click).
Life insurance might be boring, but we lay how it works and its importance here (click), while we’d love you to read some all-weather know-how in investments (click)… and the best mindset to adopt if you’re thinking of dipping a toe in (click).
Oh and the Money Means platform is currently in its testing environment with feedback rolling in. Stay tuned and we’ll keep you fully updated on launch.
“It just gives you such a clear sense of direction. I knew I needed to build up more emergency savings and pay off my debts but having a solid to-do list, and the order to do them in, is I think the most helpful thing.”
~Tester, Money Means platform