{"id":303630,"date":"2025-11-24T11:22:09","date_gmt":"2025-11-24T11:22:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/303630\/"},"modified":"2025-11-24T11:22:09","modified_gmt":"2025-11-24T11:22:09","slug":"the-money-confidence-gap-is-real-heres-how-it-hinders-you-and-what-you-can-do-about-it","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/303630\/","title":{"rendered":"The money confidence gap is real \u2013 here\u2019s how it hinders you and what you can do about it"},"content":{"rendered":"

Two people earn the same salary. One feels in control of their finances<\/a>, saving and planning for the future. The other constantly worries about bills and fears they\u2019ll never be able to retire.<\/p>\n

New research suggests the difference isn\u2019t about pay at all \u2013 it\u2019s about confidence and background.<\/p>\n

That confidence gap is shaping everything from how people save to whether they believe they\u2019ll retire comfortably.<\/p>\n

Here, we look at what\u2019s driving this money<\/a> confidence gap, and importantly, how it can be closed.<\/p>\n

The confidence divide<\/p>\n

A study<\/a> by Octopus Money found that professionals from less privileged backgrounds are half as likely to believe they\u2019ll have enough to retire comfortably. Just 35 per cent of those from lower socioeconomic backgrounds say they feel confident about retirement, compared with 67 per cent of their better-off peers.<\/p>\n

The same pattern runs through everyday finances. Only 35 per cent of working-class professionals say their salary covers their goals and expenses, compared with 67 per cent of those from wealthier families.<\/p>\n

When it comes to investing, the gap widens further: just 28 per cent have started investing for their future, compared to 63 per cent of those from more affluent upbringings<\/p>\n

Even on identical salaries, workers from lower socioeconomic backgrounds are up to three times more likely to say they couldn\u2019t cover an unexpected \u00a3500 expense. With almost four in 10 UK workers from less privileged backgrounds, the confidence gap affects millions.<\/p>\n

\"Only<\/p>\n

open image in gallery<\/p>\n

Only 35 per cent of working-class professionals say their salary covers their goals and expenses (Getty\/iStock)<\/p>\n

\u201cSocial mobility targets without effective financial planning are like asking people to climb without a harness,\u201d said inclusion and culture change expert Ed Fox. \u201cSome might make it, but more will fall than climb.\u201d<\/p>\n

This national picture is borne out in wider data. The Financial Conduct Authority\u2019s Financial Lives 2024 <\/a>survey found a growing group of adults \u201clacking financial confidence and skills\u201d.<\/p>\n

Meanwhile, the Money and Pensions Service reports<\/a> that people in the most deprived areas score 7.7 out of 10 for money confidence, compared with 8.7 in the least deprived, and are more than three times as likely to say they couldn\u2019t cover an unexpected bill.<\/p>\n

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Same pay, unequal futures<\/p>\n

Efforts to improve social mobility have long focused on education and job access.<\/p>\n

But without financial resilience \u2013 the ability to save, invest and plan \u2013 those from working-class backgrounds remain more vulnerable to shocks and less able to move up.<\/p>\n

Ruth Handcock OBE, CEO of Octopus Money, said: \u201cTwo people can earn the same pay \u2013 but one builds savings<\/a> and plans ahead, while the other constantly worries about making ends meet.<\/p>\n

\u201cThat\u2019s not about effort, it\u2019s about know-how. Nobody teaches you how to manage money if you didn\u2019t grow up around it.\u201d<\/p>\n

\"\u2018Nobody<\/p>\n

open image in gallery<\/p>\n

\u2018Nobody teaches you how to manage money if you didn\u2019t grow up around it\u2019 (Getty)<\/p>\n

For Ella Rathiel, 26, an admin worker from St Neots, money was never discussed at home. \u201cI grew up in a single-parent household, so I only saw one side of money \u2013 living on one wage. We never talked about saving. It was just about surviving,\u201d she said.<\/p>\n

At work, Ella took part in a financial coaching session that helped her build a rainy-day fund and review her pension. \u201cBy the end of that first session, I felt emotional,\u201d she said. \u201cI\u2019d always been embarrassed about debt, but I realised I wasn\u2019t alone. A couple of months earlier, money had been a constant source of stress, but now it feels manageable.\u201d<\/p>\n

Building confidence, not just wealth<\/p>\n

The research suggests one-to-one financial coaching can make a real difference. Workers from less privileged backgrounds who received support were 1.5 times more likely to feel confident about retirement and 22 per cent more likely to describe themselves as financially resilient.<\/p>\n

Jackie Spencer at the Money and Pensions Service said: \u201cFinancial education is key to building confidence. Employers play an important role in this. Children and young people who receive financial education are also more confident and build good habits.\u201d<\/p>\n

Michelle Highman, CEO of The Money Charity, added: \u201cThose from less privileged backgrounds may have had limited exposure to conversations about saving, investing and pensions, which can lead to a lack of confidence.\u201d<\/p>\n

Five ways to take control of your finances<\/p>\n

Here are five simple steps you can take towards building confidence around money:<\/p>\n

Have a plan. Set short and long-term goals and make a plan to reach them.Build an emergency fund. Save three to six months of essential costs <\/a>so unexpected bills don\u2019t push you into debt.Start small. Even \u00a350 a month can build up over time. Starting is all-important.Know your outgoings. Track spending and spot where you can save.Talk about money<\/a>. Conversations about pay, bills or saving can boost confidence and uncover useful ideas.<\/p>\n

Financial literacy, experts argue, is the missing link in Britain\u2019s social mobility efforts. Without it, employees may never feel able to plan, save or invest \u2013 limiting both financial security and career progression.<\/p>\n

\u201cSocial mobility without financial security is like climbing a ladder that\u2019s missing a few rungs,\u201d says Fox. \u201cYou might get off the ground \u2013 but you won\u2019t get far.\u201d<\/p>\n

When investing, your capital is at risk and you may get back less than invested. Past performance doesn\u2019t guarantee future results<\/p>\n","protected":false},"excerpt":{"rendered":"Two people earn the same salary. One feels in control of their finances, saving and planning for the…\n","protected":false},"author":2,"featured_media":303631,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[45,49,48,133,131,132],"class_list":{"0":"post-303630","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-finance","12":"tag-personal-finance","13":"tag-personalfinance"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/303630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=303630"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/303630\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/303631"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=303630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=303630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=303630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}