Credit, Collections & Insolvency News
Financial anxiety is significantly impacting the daily lives and well-being of millions of people across the UK, according to new research from financial education charity Money Ready.
The study reveals that 39% of adults feel anxious when they think about money – and this anxiety extends into having a real effect on people’s wellbeing, behaviour and decision making. More than a fifth (21%) of people report that money worries keep them up all night, 15% say it has caused issues in their relationship with their partner, and 14% say it has caused them to withdraw from their social circle. WIth one in five (21%) of people report that they have made bad financial decisions – such as taking on debt – to try and solve their financial worries.
The research is part of Money Ready’s ‘Cost of Not Knowing campaign,’ which aims to raise national awareness about the consequences of financial illiteracy. 27% of people say they’re ashamed of their lack of financial knowledge, but many multiple barriers to taking action persist, including finding learning more about money overwhelming (24%) and being too scared to look at their own finances (13%)
Leon Ward, CEO of Money Ready, said “Financial literacy is often discussed in terms of pounds and pence, but the emotional toll of financial confusion is just as significant.
“We are seeing a clear link between a lack of financial education and high levels of anxiety. Because many find the subject of their finances overwhelming, they avoid taking action until a crisis happens. At that point, decisions are often made under high stress, which can lead to costly outcomes.
“This is not an individual problem, but a systemic one. By providing consistent financial education at every life stage, we can move people away from reactive, stress-led choices and towards proactive, confident money management. Improving financial literacy has the potential for a huge positive ripple effect – with improved mental well-being one of the most key impacts.”