Financial confusion and overwhelm are quietly draining the wallets of millions of people, costing them hundreds of pounds annually. On average, people lost over £640 in the past year alone because they delayed major financial decisions, according to new research from financial education charity Money Ready.
Left unchecked, these annual losses can add up: over £3,000 in five years, £6,000 in a decade, and more than £18,000 over several decades. Without the right tools, even small financial decisions can combine with bigger challenges, adding up to an impact on both personal finances and the wider economy. This highlights a costly knowledge gap: almost half of Brits (43%) believe they could have saved more if they had better budgeting skills, and a third (34%) admit they have actively avoided major financial decisions because they didn’t know where to start.
Crucially, financial confusion affects bigger decisions too. One in six (15%) delayed major choices, like a mortgage or loan, because they felt overwhelming, rising to 22% of 25–44 year olds. Overall, a third (34%) have avoided making financial decisions because they didn’t know where to start, and 28% worry they’ve overpaid on something significant (like a loan or mortgage) due to lack of knowledge.
The cumulative cost of confusion is clear. Many people lose £200–£400 per decision, and 18% report losses exceeding £1,000 in just the last 12 months. This illustrates the urgent need for systemic financial education, empowering people to act with confidence, reduce avoidable costs, and strengthen their spending power.
Leon Ward, CEO of Money Ready, said “We rely on financial literacy every day, often without realising it. Yet too often, people aren’t taught how the system works. Early and consistent teaching throughout key life stages doesn’t just prevent costly mistakes; it empowers people to build healthy habits, make confident choices, and strengthen their long-term stability.
This issue is not a personal one, but a systemic one. You learn to drive before getting on the motorway. The same should be the case with finances. Whether it’s something small like a voucher expiring or something life changing like choosing a mortgage, the consequences are huge for individuals and for the whole country. Better education and a fairer system would give Brits more confidence, control, and spending power – which is good for them, and good for our economy.”
| How much, if anything, do you think each of these decisions has cost you in the last 12 months? |
| Decision |
% of people who did this |
Mean average cost |
| Leaving money in a low- or no-interest savings account |
28% |
£342 |
| Staying with the same provider believed to be expensive (e.g. bank, insurer, utility) instead of switching |
22% |
£331 |
| Paying for unused subscriptions, memberships, or free trials |
20% |
£213 |
| Letting vouchers, loyalty points, or cashback offers expire |
19% |
£195 |
| Paying more than needed for a luxury or service (e.g. phone contract, gym membership, or rent) |
18% |
£427 |
| Missing a bill or repayment and paying fees or interest |
18% |
£265 |
| Not claiming discounts or benefits you were entitled to (e.g. NHS, student, energy) |
17% |
£372 |
| Not taking advantage of employer pension contributions or tax-free savings |
15% |
£566 |
| Putting off a big financial decision (e.g. mortgage, loan) because it felt confusing or overwhelmingsyst |
15% |
£641 |
