Two thirds of consumers aim to get on top of their finances in 2021

Two-thirds of consumers are determined to get on top of their finances in 2021 – after spending more time thinking about money than ever before this year according to research by Samsung.

The study of 2,000 adults found many will do things differently in months ahead, including opting to ditch cash altogether in favour of doing everything via technology.

Just under half of those polled no longer like the idea of touching physical money, and are avoiding it as much as possible.

A further 48 per cent have got so used to conducting their financial business online, they can’t even remember the last time they visited the bank to get cash out. While almost eight in 10 adults prefer the convenience of doing everything digitally.

A third of those polled, by Samsung Pay Card, simply prefer to make purchases using their phone rather than getting out their purse or wallet, as they feel it is a safer and more secure way of making a transaction.

Teg Dosanjh, Director of Connected Services and Technology at Samsung Electronics UK & Ireland, said “The UK population has had to change its entire approach to spending and money management over the last year, particularly during periods of lockdown.”

“While many have gotten used to these new habits, we understand it can be overwhelming to try new things – particularly when it comes to finance management. That being said, it’s great to see people using technology to create a greater level of flexibility and control of their finances.”

The study also found 49 per cent of adults wish they had more control over their finances, but currently 15 per cent feel overwhelmed and 10 per cent feel scared when thinking about money.

But three in ten have never sought advice from anyone about their money situation, while 32 per cent have only spoken to family or friends, rather than a professional.

Psychologist and self-care expert, Kimberley Wilson, said “Money and mental health are intimately linked, and the relationship is bidirectional: concerns about money can contribute to stress, eroding mental health and conversely, being emotionally unwell may limit the ability to work, manage money, or make you more prone to risky spending.”

“While it’s not always easy, taking the step to gain control of your spending can significantly ease psychological stress. Digital tools can make financial management accessible to everyone; it’s like having a financial advisor in your pocket.”

“Apps allow you to see all your spending in a glance: where you spend, how much you could save and where you could cut back. By reflecting on your spending, you can help to prevent the denial that we can all stumble into when dealing with the tricky subject of money. Awareness is the first step to change, so taking a deep breath and looking at the truth of your relationship with money is the only way to make it better.”

It also emerged that 46 per cent of adults don’t know or understand all the different banking options out there now.

Eight in ten adults said being able to bank online offers more flexibility, something they have used more in 2020 than ever before. But many also enjoy the various rewards given to them by their banking provider, although more than half don’t feel they’ve made the most of any potential reward schems, and don’t know if they could have claimed any rewards or cashback.

Seven in ten hope 2021 will be the year they get more benefits from using certain bank cards.

Money expert, Emelie Bellet, said “As we head into 2021, I’d like to offer that we focus on the prospects of the post-pandemic world. 2020 threw everyone quite the curveball – but it also offered ample opportunity to reflect and learn.”