With the last year throwing many people into financial turmoil, the importance of having a firm grip on your personal finances was highlighted more than ever. However, many Brits do not feel confident when it comes to their personal finances.
Research from debt management company Lowell has found that just a third of people (34%) claim to feel “very confident” when handling their finances. This then falls to just 19% of young people (aged 16-25).
Young people in particular seem to be struggling when it comes to understanding their personal finances. A huge 44% are not confident with their finances, and one in 10 (11%) claim to have no confidence at all in their own understanding of personal finance.
Just a fifth (20%) of those aged 16-24 knew what an overdraft was, and only 5% claimed to know the meaning of the term ‘arrears’.
As well as this, young people are more likely to use social media platforms like TikTok and Instagram to access financial advice than go to a bank (19% Vs 17%).
