If you were asked to make big financial decisions, how sure are you that you’d make the right ones.
Well, a new study by PwC and YouGov has found that nearly nine in ten people feel confident or very confident in making decisions about their money. But the same research suggests that, for many, this confidence may be misplaced. When asked basic multiple choice questions, many people struggled to give the correct answer.
For instance, only 37% of those polled were able to estimate the value range for a mortgage correctly, and just 31 per cent could do so for a personal loan. Another interesting finding was that those with the highest incomes were more likely to answer a question correctly. For example, those earning £70,000 or more a year were twice as likely as those on less than £20,000 a year to give the right answer to the mortgage question.
Does this point to an advice gap, with those on lower incomes either choosing not to get help and guidance, or not knowing where they can get it? If so, that shows there’s still plenty to be done to boost financial literacy levels and give people the knowledge and information they need to save and invest.
According to the PwC survey, 24% of respondents don’t seek financial advice or information from anybody at all, while only 26% turn to financial institutions such as banks. But significantly, 39% go to their friends and family for advice, and 38% rely on internet search engines.
We can’t understate exactly why it’s so important to go to professional, regulated financial advisers for help with managing your money. By turning to loved ones or a random page on the internet, can you be sure you’re getting accurate information, and that what’s being recommended is the best course of action for you?
Of course not.
You want to feel empowered to make informed decisions that reflect your goals in life and genuinely help you work towards them. Speaking to a professional is the best way to get that outcome. A professional financial adviser will take a holistic look at you, your finances and what you want out of life, and always offer advice that’s in your best interests.
That means you can feel confident that you’re on course to achieve your objectives, and enjoy greater peace of mind and certainty. If you have any questions about how to make your money work hard for you so you can achieve your goals, please don’t hesitate to get in touch, and we’ll be happy to speak with you.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article does not provide individual tailored investment advice and is for guidance only. We cannot assume legal liability for any errors or omissions it might contain. Ethical Futures llp is authorised and regulated by the Financial Conduct Authority.