Moneybox Financial Confidence Index

We recently surveyed 4,000 UK adults* to learn more about how they are saving, investing, planning for retirement, and managing their day-to-day finances – so that we could understand how people could be better supported to achieve their goals and better financial outcomes throughout their lives.

One of the interesting things we observed was that income is not the only important factor when it comes to growing your money and building wealth over time. Financial confidence could be the real game changer, as regardless of income, those who consider themselves financially confident were found to have nearly double the net worth of those with lower levels of financial confidence.

And, the most significant factor contributing to this outcome appears to be that those who are more financially confident simply dedicate much more time to their finances overall.

For example, 4 out of 5 people in this group said they always dedicate time to researching the best financial products for their needs, compared to less than 2 in 10 who are not financially confident.

They are far more likely to seek out financial information, guidance, and advice proactively across a variety of sources (80%). And, those with greater confidence typically devote more time to understanding and actively managing their personal finances – 52%, compared to just 12% of those lacking in financial confidence.

The Advice Guidance Boundary Review and how it could boost the nation’s financial confidence 

Our research also has found that nearly two-thirds (64%) of UK adults believe they’ve missed out on financial opportunities in life due to a lack of financial knowledge and confidence.

This is no great surprise considering we know that most people never received any formal financial education and so have been left to figure out how to manage their money and plan for the future through trial and error.

Without proper guidance, the financial decisions we make can lead to opportunities missed and mistakes made.

This is why the value of professional financial advice is undeniable. However, it regrettably remains a privilege afforded to a select few, with less than 8% of the UK population accessing financial advice in the last two years.

The ability to make informed financial decisions should not be a luxury, but a fundamental right that must be extended to every person and not limited to those who can afford to pay for advice.

Currently, some financial services providers like Moneybox do not have advice permissions and so are limited in how active a role they can play helping customers understand the options available to them.

And that is why the Advice Guidance Boundary Review (AGBR) led by HM Treasury and the Financial Conduct Authority, could be revolutionary for consumer finances in the UK.

The AGBR aims to review the parameters of financial advice and financial guidance, exploring where consumers could be better supported to make financial decisions with greater confidence.

‘Targeted support’ is one proposal within the AGBR that we at Moneybox believe offers an exciting opportunity for industry-wide innovation.

This review is a vital step towards closing the financial knowledge and confidence gap, ensuring that consumers feel empowered to take control of their finances.

We are confident that if consumers are better supported to navigate the complexities of personal finance, it would lead to improved financial outcomes throughout life, now and for generations to come.

So what can you do to boost your financial confidence now?

As a former financial adviser, I have always believed the best thing you can do to boost your financial confidence is spend time getting to grips with money matters. Consider these 5 simple steps you can take that will help you become more financially confident.

1. Figure out what your short, mid and longer term financial goals are. Our research revealed that only 30% of UK adults regularly set long term financial goals. It’s so important to have a direction of travel when planning your finances.

2. If you don’t have one already, a budget can be a great way to boost your financial confidence. Only 31% of UK adults consistently set and follow a budget.

3. Research what help might be available for you to hit your financial goals. Consider Citizens Advice, benefits calculators, and the Moneybox learn hub.

4. Pick a topic aligned with your financial goals and dedicate 30 minutes each week to learning. Over a year this results in 26 hours dedicated to improving your financial situation.

5. Dedicate time to researching the best products for your financial goals. For example, a Lifetime ISA for home buying, an ISA for tax-efficient savings, or pension tax relief for early retirement.

At the end of the day, whether you spend 30 minutes each week reviewing your budget, researching the best financial products for your needs, or making a plan to help you achieve an important financial goal, our research shows that time spent on your finances is critical in boosting your financial confidence.

*Research conducted by One Poll on behalf of Moneybox, January 2024. A nationally representative sample of 4,000 adults across the UK participated in the survey.