65% of Brits avoid financial decisions due to a lack of confidence

Young Brits lack confidence in dealing with their finances and feel undereducated on the subject, according to new research from Aqua.

• 65% of Brits admit they’ve avoided making a financial decision due to lack of confidence, with people not feeling truly confident managing money until around age 28
  
• Over half (53%) of Brits say the rising cost of living has negatively impacted their financial confidence
  
• While 52% of Brits say having extra income or savings would help, nearly 30% believe better financial education would improve their confidence
  

The ongoing cost-of-living crisis is reshaping how confident people feel about managing their money. While many UK adults are feeling the strain, new research from credit card brand Aqua reveals that young people aged 16-24 are the hardest hit, with this group reporting the lowest confidence when it comes to handling their finances. 

The survey of 2,000 people explored how confident Brits feel about their finances as well as the factors influencing this, the age at which they feel most financially assured, and what support they believe would help strengthen their financial confidence.

1 in 4 young adults (16-24) lack financial confidence, with the rising cost of living impacting it the most

65% of Brits admit they have avoided making financial decisions due to a lack of confidence. This financial uncertainty is most pronounced among young adults, with more than one in four (26%) 16–24-year-olds admitting they lack confidence when it comes to their finances, compared to just 8% of those over 55. On average, people in the UK report feeling financial confidence at age 28.

The factors behind financial uncertainty change as people get older. For 16- to 24-year-olds, nearly half (45%) say the rising cost of living has shaken their confidence, and almost a third (30%) struggle with low or unstable income. For those in their mid-20s to early 40s, past money mistakes weigh more heavily, affecting 33% of 25–34-year-olds and 25% of 35–44-year-olds. Across all age groups, however, the rising cost of living remains a major concern, troubling more than half of respondents (53%).

The top five things that impact Brits’ financial confidence: 

Rank	Impact on financial confidence	% of Brits impacted
1	Rising cost of living	53%
2	Low or unstable income	22%
3	Past money mistakes	21%
4	Fear of getting things wrong	20%
5	Debt	18%

Almost three in ten (29%)  Brits say better financial education would boost their confidence

While more than half of Brits (52%) say having extra income or savings would help boost their financial confidence, the data suggests that knowledge, guidance and practical tools may be just as important.

Almost 30% of adults say that better financial education would make the biggest difference, a view particularly strong among 25–34-year-olds (46%) and 35–44-year-olds (40%), who see it as key to boosting their financial confidence.

Around one in four adults (24%) say they would feel more confident if they could speak to a financial advisor, while 21% say that talking more openly about money with friends, family, or partners would help. Married adults are slightly more likely than single adults to value these conversations (23% vs 19%).

Previous data from Aqua revealed that 37% of Brits struggle to talk about money because of fear of judgment or criticism. When starting these conversations, try to be clear about your purpose, open about your situation, listen carefully, and focus on finding solutions together

Rank	Confidence Booster	% of Brits who feel this would make them more confident
1	Having more income or savings	52%
2	Better financial education	29%
3	Speaking to a professional (e.g. financial advisor)	24%
4	Tools/apps that simplify budgeting and financial planning/decision making	22%
5	Talking more openly about money with friends/family/partners	21%

Sharvan Selvam, Commercial Director at Aqua, shares tips for improving financial confidence: 

“Confidence is just as important as knowledge when it comes to managing money, but it can be shaken by factors outside your control, from rising costs to unpredictable income. Our research shows that even people who consider themselves confident sometimes avoid making key decisions, which can have a knock-on effect on their financial future.”

The good news is that confidence can be built, and small, consistent actions can make a big difference:

1. Make a budget and stick to it – budgeting apps are ideal for planning days, weeks or even months ahead, allowing you to track outgoings at a glance.
   
2. Educate yourself – understanding the basics of personal finance is vital. Learn how to save money and read up on pensions, investments and credit from reliable sources such as banks, your credit card provider and financial institutions.
   
3. Speak to an expert – if you’re really struggling to get your head around your finances. Sites like MoneyHelper can provide free, government-backed support over the phone or in person.

The most financially confident cities in the UK: 

Rank	City	% of residents confident in managing their personal finances
1	Liverpool	92.8%
2	Cardiff	91.7%
3	Bristol	91.3%
4	Edinburgh	90.8%
5	Leeds	90.7%
6	Nottingham	89.9%
7	Belfast	89.1%
8	London	88.6%
9	Brighton	88.1%
10	Plymouth	87.0%