Are You Confident in Making Financial Decisions?

If you were asked to make big financial decisions, how sure are you that you’d make the right ones.

What are the Statistics?

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. On the face of it this sounds great.

Unfortunately 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 per cent 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.

Findings from a PWC Survey

According to the PwC survey, 24 per cent of respondents don’t seek financial advice or information from anybody at all, while only 26 per cent turn to financial institutions such as banks.

But significantly, 39 per cent go to their friends and family for advice, and 38 percent rely on internet search engines.

The Importance of Financial Advice

When making financial decisions, you want to feel empowered to make informed decisions that reflect your goals in life and help you work towards them. By turning to loved ones or a random page on the internet, can you be sure you’re getting accurate, up to date information, and that what’s being recommended, is the best course of action for you, your circumstances and your objectives? Of course not.

We can’t stress enough why it’s so important to go to professional, regulated financial adviser for help with managing your money. These advisers will have the relevant qualifications, experience and expertise to provide specific and tailored advice not only relevant to you but also relevant to the current economic backdrop. They really will be able to help set you on the right track to achieve your objectives and help you stay the course as your circumstances changes over the years.

What Does a Professional Financial Adviser do to Help When Making Financial Decisions?

A good 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 and tailored specifically to you and your circumstances. They will also look at what other areas of your finances need work, areas that you may not have even considered until pointed out to you. they will also be able to help ensure that if something goes wrong, such as a loss of income due to ill health, it doesn’t completely derail your financial plan.

That means you can feel confident that any plan you create with a regulated financial adviser should put you on the correct course to achieve your objectives, and enjoy greater peace of mind and certainty.

Sources

pwc [Household debt tops £2 trillion for the first time as new data shows that less than half of UK consumers can correctly answer basic financial questions]