The money confidence gap is real - here’s how it hinders you and what you can do about it
What is the money confidence gap and how does it impact you?
- Research indicates a significant “money confidence gap” in the UK, where individuals from less privileged backgrounds exhibit lower financial confidence, irrespective of their income.
- A study by Octopus Money found that only 35 per cent of working-class professionals feel confident about retirement, compared to 67 per cent of their wealthier counterparts, and are less inclined to invest.
- This disparity also affects daily finances, with those from lower socioeconomic backgrounds up to three times more likely to struggle with an unexpected £500 expense.
- Experts contend that financial literacy is a crucial missing element in social mobility initiatives, as a lack of financial resilience leaves individuals vulnerable and impedes advancement.
- One-to-one financial coaching and education are identified as vital solutions, substantially enhancing confidence in retirement planning and overall financial resilience.