Yahoo News Study shows Edinburgh and Cambridge lead in UK financial confidence, with Liverpool at the bottom
Residents of Edinburgh, Scotland's capital, are the most confident in the UK when it comes to financial matters such as saving, investing, retirement planning and overall money management, closely followed by those living in Cambridge. Despite being home to the highest percentage of confident investors in the UK (43 per cent), London only ranks third in overall financial confidence. Brighton & Hove and Norwich round out the top five.
Other cities with high levels of financial confidence include Southampton, Sheffield, Bristol, Leeds, and Leicester. On the other end of the scale, Liverpool was found to be the least financially confident city in the UK, ranking just below Belfast, Newcastle, Glasgow and Plymouth.
The study, commissioned by Moneybox and involving 4,000 UK adults, revealed that regardless of income, those who consider themselves financially confident have nearly double the net worth of those with low levels of financial confidence. On average, these financially savvy individuals had a net worth of £145,000 (excluding properties) - encompassing savings, investments, and pension contributions - compared to just £78,000 among their less financially confident counterparts.
Interestingly, the research also showed that the most significant contributing factor to higher levels of financial confidence appears to be time spent learning about money matters. Brian Byrnes, head of personal finance at the saving and investing app, stated: "When it comes to making the most of your money, building financial confidence can be a real game changer to ensure you are equipped to make the most of all your financial opportunities in life.
"Our research has shown that one of the most important things a person can do to improve their financial situation is simply spending time getting to grips with personal finance topics. This simple step, which we can all choose to take, can have a notable positive impact on so many aspects of our financial lives.
"Whether you spend 30 minutes a week reviewing your budget, researching the best financial products for your needs, or making a plan to help you achieve an important financial goal - time spent on your finances is critical in boosting your financial confidence, and therefore, your financial position over time."
The study, conducted by OnePoll, also found that across the UK only 20 per cent of Brits regularly spend time learning about personal finance topics. Worryingly, just three in 10 consistently make and follow a budget and only 14 per cent have ever paid for professional financial advice.
When it comes to saving, Cambridge and Brighton & Hove stood out as the most confident, while Belfast and Liverpool struggled most in this category.
Despite being 16th on the financial confidence index, Belfast matches London with the highest number of residents feeling confident about investing (43 per cent). In contrast, only a quarter of the population in Glasgow and Newcastle share this sentiment.
Manchester boasts the most residents who are confident in their ability to plan for a comfortable retirement, with 57 per cent of the population expressing this belief. Birmingham, Leeds and Edinburgh closely follow. Liverpool (42 per cent), Southampton (44 per cent) and Plymouth (44 per cent) have the least confidence in their retirement preparations.
Brian Byrnes advises: "Financial education, both in school and throughout adulthood, has been severely lacking in the UK, which has meant that many are left to figure out how to manage their money and plan for the future through trial and error.
"The financial services industry has evolved a lot in recent years and providers have a host of information and tools available to help guide and support people as they learn how to achieve their financial goals and build wealth for the future.
"However, without a doubt, more needs to be done, by the government, regulators, and the industry as a whole, to close the advice gap and help boost the nation's financial confidence and long-term financial resilience."
The cities ranked from most to least financially confident are:
Edinburgh.
Cambridge.
London.
Brighton & Hove.
Norwich.
Southampton.
Sheffield.
Bristol.
Leeds.
Leicester.
Manchester.
Birmingham.
Plymouth.
Glasgow.
Newcastle.
Belfast.
Liverpool.
