After a period of significant spending, many of us might put off looking at how those expenses have affected our bank accounts.
To delve deeper into Britain’s level of financial awareness, the credit card team at Compare the Market surveyed over 6,800 people in the UK to see how common this behaviour is. They asked questions about how often they check their bank balances, if their habits have changed due to the rising cost of living, how aware they are of their monthly spending, and why they might choose to ignore their finances.
Plus, to help those who avoid checking their bank accounts, the credit card team shared some top tips for staying on top of finances and alleviating financial stress.
You can read the full research here: https://www.comparethemarket.com/credit-cards/content/financial-awareness-report/
Though 70% of Brits are aware of their monthly outgoings, nearly 1 in 10 don’t have an overview of how much they spend
Overall, Brits demonstrate a strong awareness of their finances, with 70% admitting they are aware of their monthly outgoings. However, nearly 1 in 10 people admit that they aren’t as in touch with how much they spend. Staying informed about your finances is key to managing your money effectively and avoiding unexpected surprises. Regularly checking your balances and tracking spending can help you feel more in control and prepared for any financial decisions or challenges ahead.
People in Bristol have the highest awareness of their monthly spending
When examining our results on a regional level, Bristol leads the way as the city most aware of their monthly outgoings, at 77%. This is closely followed by Southampton, Edinburgh and Sheffield (75%).
| How aware are Brits of their monthly outgoings? | ||
| Rank | City | % of Brits aware of their monthly outgoings |
| 1 | Bristol | 77% |
| 2 | Southampton | 75% |
| Edinburgh | 75% | |
| Sheffield | 75% | |
| 3 | Brighton | 74% |
| Newcastle | 74% | |
*Please note that this table only shows the top 6 cities. Results with the same percentage are ranked equally and share the same rank position.
On the other end of the scale, Norwich, London, and Belfast have the lowest awareness at 11%. Birmingham and Liverpool follow, with 10% admitting they know how much they spend each month.
Brits check their bank balance 22 times a month on average and their credit card balance about 15 times a month
The most common frequency for checking balances is a few times a week, with 30% of respondents doing so for their bank balance and 19% for their credit card balance.
Checking an account daily is more common for bank balances, with 27% checking every day compared to 12% for credit card balances. 14% of respondents check their bank balance several times each day, and a further 6% of people check their credit card balance multiple times per day.
| How often are Brits checking their bank balance? | ||
| How often | % of Brits who check their bank balance this often | % of Brits who check their credit card balance this often |
| Multiple times a day | 14% | 6% |
| Everyday | 27% | 12% |
| A few times a week | 30% | 19% |
| Once a week | 12% | 12% |
| A few times a month | 7% | 11% |
| Once a month | 4% | 9% |
| Less than once a month | 1% | 3% |
| Never | 1% | 3% |
| Only when making large purchases | 1% | 1% |
| Only when I receive my salary | 0% | 1% |
The survey showed that the average amount of times Brits check their bank balance is 22 times a month and their credit card balance 15 times a month.
Over 65% of Brits agree that they check their bank balance more because of the rising cost of living
65% of Brits agree that they check their bank balance more because of the rising cost of living. This is especially true in the younger generation, as 73% of 16-24 year olds say they check their bank balance more, compared to just 36% of 45-54 year olds.
Interestingly, there are some cities that have become more financial aware due to the cost of living rise than others:
| Rank | City | % of people here who check their bank account more often because of the cost of living rise |
| 1 | Bristol | 69% |
| 2 | Belfast | 68% |
| Sheffield | 68% | |
| 3 | Liverpool | 67% |
| Newcastle | 67% |
*Please note that this table only shows the top 5 results. Results with the same percentage are ranked equally and share the same rank position.
The results show that many people in these cities are checking their bank accounts more often because of rising living costs. Bristol has the highest percentage at 69%, followed by Belfast and Sheffield (both 68%).
1 in 10 Brits avoid checking their finances because it causes them stress (12%)
| Rank | Reason | % of people who say this is the reason they ignore their finances |
| 1 | Because checking my finances causes me stress | 12% |
| 2 | Because I feel guilty about spending | 11% |
| Because checking my finances overwhelms me | 11% | |
| 3 | I don’t have much money to manage, so I don’t think it’s important | 10% |
| Because I do not want to know the reality of my finances | 10% |
*Please note that this table only shows the top 5 results. Results with the same percentage are ranked equally and share the same rank position.
Among the respondents who sometimes or often avoid checking their finances, the biggest reason—12%—is that checking finances causes them stress. Another 11% feel guilty about their spending, and the same number of people say that checking their finances feels overwhelming.
Additionally, 10% of people believe they don’t have much money to manage, so they think it’s not important to pay attention to their finances.
The credit card team at Compare the Market shares tips on how to stay on top of finances:
- Create a budget
“A key step in managing your finances is creating a budget and trying to stick to it. Start by calculating your income, including your post-tax salary and any other earnings. Then, estimate your monthly expenses, factoring in costs like rent, bills, commuting, and loan payments. Prioritise these essential expenses first. After covering them, the remaining money is your disposable income.”
- Find methods that suit you
“It can be overwhelming to know your exact finances, but getting a handle on them can be empowering. Consider using budgeting apps to simplify tracking your income and expenses, or create a spreadsheet. The important thing is to find a method that works for you and regularly monitor your finances. Staying aware of your spending will help you feel more secure financially.”
- Create specific savings funds
“If you’re in a financial position to do so, creating an emergency fund is a great way to help you regain control over your finances. In fact, a quarter (25%) of Brits say that building an emergency fund is one of their top financial goals right now. This fund can help to provide a safety net for unexpected expenses, like car repairs or medical bills. Additionally, it can be helpful to establish a savings fund for specific goals, whether it’s for Christmas presents, a holiday, or a house deposit. ”
