The Financial Awareness Report
The Financial Awareness Report
After a period of increased spending, some of us may delay examining the impact these expenses have had on our bank balance. But how common is it to ignore your finances?
To gain a better understanding of financial awareness in Britain, we surveyed over 6,800 people in the UK to see how common this behaviour is. We explored how closely they monitor their spending, how often they check their bank balances, whether their financial habits have shifted with the rising cost of living, and the reasons why they may sometimes feel less engaged with their finances.
Additionally, for those who find it challenging to stay on top of their accounts, the credit card team shares some helpful tips for managing your finances and reducing financial stress.
How aware are Brits of their finances?
Overall, Brits demonstrate a strong awareness of their finances, with 70% admitting they are aware of their monthly outgoings. However, nearly 1 in 10 people acknowledge that they aren’t as in touch with how much they spend.
People over the age of 55 are the most aware of their spending, with an impressive 89% keeping track of their outgoings. Those aged 16 to 24, admit to being the least aware of their spending habits, with just 58% saying they are aware and around 15% of them admit they don’t know how much they’re spending each month.
Staying informed about your finances is key to managing your money effectively and avoiding unexpected surprises. Regularly checking your balances and tracking spending can help you feel more in control and prepared for any financial decisions or challenges ahead.
How often do Brits check their bank balance?
Our survey shows that many Brits are diligent about monitoring their finances. Around 30% check their bank balance a few times a week and 27% make it a daily habit. In contrast, only 12% check their credit card balance daily.
| How often are Brits checking their bank balance? | ||
|---|---|---|
| How often | % of Brits who check their bank balance this often | % of Brits who check their credit card balance this often |
| Multiple times a day | 14% | 6% |
| Everyday | 27% | 12% |
| A few times a week | 30% | 19% |
| Once a week | 12% | 12% |
| A few times a month | 7% | 11% |
| Once a month | 4% | 9% |
| Less than once a month | 1% | 3% |
| Never | 1% | 3% |
| Only when making large purchases | 1% | 1% |
| Only when I receive my salary | 0.4% | 1% |
On a regional level, our results show that residents in Plymouth and Newcastle check their bank balances most frequently, averaging 25 times per month. Sheffield follows closely at 24 times. Credit card balances are checked somewhat less frequently across the country, with Leeds, Plymouth and Manchester leading the list at 16 times per month.
Has the rising cost of living led to people checking their finances more?
A significant 65% of Brits say they’re checking their bank balances more often lately due to the rising cost of living. This is especially true for younger people; about 73% of those aged 16 to 24 are keeping a closer eye on their finances. In contrast, only 36% of people aged 45 to 54 and 13% of those over 55 report doing the same, showing that the younger generation may be more affected by financial pressures.
Some cities in the UK have become even more financially aware as a result of the increase in the cost of living. But which locations check their bank account more frequently due to these rising costs?
| Rank | City | % of people here who check their bank account more often because of the cost of living rise |
|---|---|---|
| 1 | Bristol | 69% |
| 2 | Belfast | 68% |
| Sheffield | 68% | |
| 3 | Liverpool | 67% |
| Newcastle | 67% | |
| Manchester | 67% | |
| London | 67% | |
| 4 | Birmingham | 66% |
| 5 | Edinburgh | 64% |
| 6 | Cardiff | 63% |
*Please note that this table only shows the top 10 results. Results with the same percentage are ranked equally and share the same rank position.
The results show that many people in these cities are checking their bank accounts more often because of rising living costs. Bristol has the highest percentage at 69%, followed by Belfast and Sheffield (both 68%).
This increase in account checking likely stems from worries about money management and budgeting in the wake of a cost of living surge. As prices for everyday items like food, petrol, and rent go up, people want to keep a closer eye on their finances to avoid overspending and ensure they can cover their bills.
The top reasons why Brits may avoid checking their finances
It’s reassuring to know that nearly half (47%) of Brits don’t ignore their finances, however, around 53% avoid keeping on top of this. From not checking your balances to not budgeting your money, we wanted to uncover the most common reasons why people may ignore their finances.
| Rank | Reason | % of people who say this is the reason they ignore their finances |
|---|---|---|
| 1 | Checking my finances causes me stress | 12% |
| 2 | I feel guilty about spending | 11% |
| Checking my finances overwhelms me | 11% | |
| 3 | I don't have much money to manage, so I don't think it's important | 10% |
| I do not want to know the reality of my finances | 10% |
*Please note that this table only shows the top 5 results. Results with the same percentage are ranked equally and share the same rank position.
Among the respondents who sometimes or often avoid checking their finances, the biggest reason—12%—is that checking finances causes them stress. Another 11% feel guilty about their spending, and the same percentage of people say that checking their finances feels overwhelming.
Additionally, 10% of people believe they don't have much money to manage, so they think it's not important to pay attention to their finances.
Top tips to help you keep on top of your finances
Feeling in control of our finances can be particularly challenging in times of high living costs, where inflation and rising expenses can create a sense of financial instability. However, there are many ways to regain control and manage your finances effectively, even when the cost of living is especially high. The credit card team shares some tips to help you stay on top of your financial situation:
- Create a budget
“Over one in ten Brits admit they ignore their finances as it overwhelms them. One of the ways to help you feel more in control of your money is by creating a budget and doing your best to stick to it. Start by calculating your income, which should include your post-tax salary along with any other sources of income you might have. Next, estimate your monthly outgoings. Be sure to account for essential expenses like rent or mortgage payments, household bills, travel expenses, and any loan or credit card payments, as well as any other costs you think you might need to pay for in the coming month.
It’s important to prioritise your essential expenses, such as housing and loans. Any money that remains after covering these necessary costs can be considered your disposable income.
Keep in mind that sticking to a budget can be a challenge. Your expenses may vary from month to month, and that’s perfectly normal. However, having a budget is a valuable tool that helps you become more aware of your spending, ultimately reducing some of that financial anxiety.” - Find methods that suit you
“It can feel overwhelming to know exactly how much money you have and what you’re spending. However, once you get a handle on your finances in a way that works for you, you may find it incredibly empowering and feel much more in control of your money.
Consider using budgeting apps, as they can simplify the process and keep all the figures in one place. Alternatively, creating a spreadsheet to track your income and expenses can be a helpful tool. If you prefer a more traditional method, jotting everything down in a journal works just as well. The key is to find what suits you best and ensure you regularly keep track of your finances. Staying aware of your spending can help you feel more secure about your financial situation.” - Create an emergency fund
“If you’re in a financial position to do so, creating an emergency fund is a great way to help you regain control over your finances. In fact, a quarter (25%) of Brits say that building an emergency fund is one of their top financial goals right now. This fund can help provide a safety net for unexpected expenses, like car repairs or medical bills” - Achieve your goals with targeted savings
“Additionally, it can be helpful to create a savings fund for specific goals, whether it’s for presents, a holiday, or a house deposit.
To make saving easier and less stressful, consider setting up a standing order from your current account to your savings account every month. This way, a portion of your income is automatically transferred to your savings as soon as you get paid, helping you prioritise saving without needing to think about it too much.
When it comes to choosing a savings account, take the time to shop around. Different providers offer varying interest rates, so finding one that best suits your needs can help you grow your savings more effectively. By being proactive about your savings, you’ll not only alleviate financial stress but also work steadily towards your goals.”
The content written in this article is for information purposes only and should not be taken as financial advice. If you require support on the products discussed here, please speak to your bank/lender or seek the advice of an independent professional financial advisor. We also have more information on our Customer Support Hub.
Methodology
A survey of 6,803 people was conducted in September 2024.
The Editorial Team - Compare the Market
Experts in personal finance, insurance and utilities
Compare the Market’s Editorial Team is made up of industry experts with decades of experience in personal finance, insurance and utilities. Each of our authors has an area of expertise, where they can share their extensive experience to help you get a better deal, by finding the right product and saving money.