More than a third (35%) of people have low or no confidence in their financial abilities, a survey has found.
Financial jargon and complex terminology leave 30% of people finding financial products and services confusing, according to TSB’s money confidence barometer.
People who lack confidence in their finances could be missing out on seeing their money grow, according to the research, based on a survey of more than 5,000 people.
A third (34%) of people with high money confidence are putting money into long-term savings or investments, dropping to 19% of those with no confidence.
Robin Bulloch, chief customer officer at TSB, said: “As we come out of the pandemic it’s important we continue to build people’s confidence levels to help them manage their money.”
Here are some tips from TSB for managing money:
1. Do the maths.
Write down your essentials such as utility bills, food, rent/mortgage and anything else such as credit card or debt repayments. Focus on your average spending per month so you understand what your future spending might look like.
2. Make a budget.
Set yourself a monthly and daily budget. Having an end target or goal in mind can help with motivation. On payday, put your savings money aside in a separate account so you will not miss it.
3. Choose the right accounts for you.
For example, do you need an account you can dip into from time to time or would you like to lock away some savings to stop the temptation of dipping in? Some accounts offer features that take out the hassle of transferring money – such as “round the pound” features which round up transactions to the nearest pound and move your spare pennies into a savings account.