Why we created this report
At Claro, our mission is to empower people to make smarter decisions when it comes to their money.
We know that money and mental health are inextricably linked, and with 1 in 4 people in the UK suffering from a mental health problem at some point in their lives, understanding how this affects our financial wellbeing is vital.
So we designed a survey to find out what we can do to better protect and maintain our mental health through financial education and planning.
How we did it
Almost 2,000 UK adults took part in our survey in December 2020, during the global Covid-19 pandemic.
Participants were asked about their lifestyle and mental wellbeing, as well as their financial literacy levels and how confident they felt about managing money.
What we found
Our findings showed that the less financially confident you feel, the worse your mental wellbeing is likely to be.
Interestingly, we also discovered that:
- The majority of UK adults don’t have a good understanding of basic financial principles. For example, 64% don’t understand the impact of inflation on their money.
- The UK lags behind other countries when it comes to financial literacy levels (our average scores are 12% lower than France).
- A high income doesn’t always mean greater financial confidence. In fact, over 1 in 10 of those with a household income of £75,000 – £99,000 report having ‘low’ or ‘low medium’ levels of financial confidence.