- 36% admit to avoiding checking their bank balance
- 83% put off creating long-term financial plans
YOUNG BRITONS are suffering from a fear of their own finances according to a survey of their money concerns, with more than a third often too afraid to check their own bank balance.
The survey of 1,160 UK adults between the ages of 18-24, carried out by Oaksmore ISA (an innovative, FCA-regulated Alternative Investment Fund Manager) revealed that 36% admit to often being too anxious to check their account and face the truth of their own spending habits.
This anxiety is fuelled by a lack of financial security, with the majority of young adults (62%) say that they live month-to-month with no spare cash to build up any savings or make investments that would could ease their fears.
This finance-phobia is also preventing long-term financial planning. 83% of young adults say that that they have no long term financial plans or goals, with just over two-thirds (68%) feeling pessimistic about their financial future.
The results do suggest that finance-phobia makes young adults more adverse to borrowing money – just 11% would choose to borrow in order to buy an expensive treat. However, their lack of a financial plan does mean that savings or investments are seen as ‘fair game’ when it comes to funding treats. 38% said they would draw down on such funds if they had them available.
Reuben Skelton at Oaksmore said: “These findings suggest that young adults are failing to face up to their financial realities and, as a result, are struggling to put in place plans that would help ease their fears and improve their financial security.
“Greater encouragement and education is needed to help people begin to face these fears, putting plans in place to begin to give them a sense of control over their financial future.
“Beginning with a basic budget that allows some saving and investment is a crucial first step. Then exploring options for where to place this extra cash somewhere that is going to earn a good return. People also need to have the will-power to leave these funds in place, allowing them to build into a decent amount that can help achieve longer term goals.
“We have also found that feeling more connected with an investment is an important factor. Understanding how that money is working for you to increase the value of your investment.”
The Oaksmore Innovative Finance ISA is one example of such a product that combines high returns with an important social purpose.
It is the UK’s first Innovative Finance ISA to allow ordinary British investors to support heritage projects across the UK. As well as pledging their funds to a good cause, investors can also benefit from much higher interest rates that those seen with regular savings accounts and traditional cash ISA’s.
Oaksmore Portfolios AIFM Limited act as an Alternative Investment Fund Manager under the Alternative Investment Fund Managers Directive and is authorised and regulated by the Financial Conduct Authority (FCA).
More details about the Oaksmore ISA can be found online at https://oaksmore-isa.co.uk