More than one in three Brits admit they have made “silly and avoidable” mistakes with their cash over the last 12 months, according to research.
The study of 2,000 adults found more than a third (36%) made errors in judgement when it came to spending and saving habits, including forgetting to cancel subscriptions, accidentally buying apps or booking tickets for the wrong date.
But more than half (57%) are determined to plan better in 2023, with 25% believing they’ve learnt from financial mistakes they’ve made in the past.
Although nearly a quarter (24%) wish they didn’t have to think about money all the time.
It also emerged 37% are keen to improve their financial wellbeing this year.
Financial expert Emmanuel Asuquo, working with Comparethemarket.com to mark the launch of new character Carl, a well-intentioned wombat prone to making questionable money decisions, said: “Interestingly, the research highlighted that many (38%) rarely think about their approach towards money.
“Becoming more self-aware of your "financial spirit animal" could be a great tool for improving your financial wellbeing by recognising strengths and weaknesses in managing your money.”
With 37% keen to improve their financial wellbeing this year, Comparethemarket.com, together with psychologist Hope Bastine and Asuquo have identified seven familiar financial personas.
These include the Wolf, Ostrich, Wombat, Camel, and Meerkat - together with their individual traits and advice.
The study found Brits are most likely to identify with the "Meerkat" money persona (36%) – always on the lookout for better deals and discounts.
But less than one in three (30%) said the cost-of-living crisis has spurred them to be savvier with their spending.
While 28% are avid savers like the "Squirrel" and 13% see themselves as the "Camel" – and have a tendency to save and then splurge.
Characteristics of the "Puppy" are shared by nearly one in 10 adults – who spend more freely with abandon – and the same percentage relate to the "Ostrich" – who can feel overwhelmed and daunted by money.
Nearly one in five (19%) admitted to burying their heads in the sand when it came to their finances, at some point over the past year.
With 9% also recognising themselves as a good-intentioned, yet hapless financial "Wombat".
The research went on to reveal the steps respondents would be taking to better deal with their finances this year, including visiting price comparison websites, watching more TV shows about personal finance and reading up online about how to better manage money.
More than a quarter (28%) wish they were more knowledgeable when it comes to personal finance.
Emotional spending, feeling comfortable with expenditure and providing for those they love but still having enough put aside to care for themselves were the biggest things respondents struggled with financially.
It also emerged more than a third rate themselves as good with money, but don’t like to talk about it.
Helene Barnes, cost of living expert at Comparethemarket.com, added: “The last 12 months have posed more financial questions to people than any other year in living memory.
"And the more questions, inevitably the more mistakes can happen, as the research has shown.’’
“Understanding what influences your financial decisions, can help you achieve your money and life goals - whether that’s saving more or spending differently."
SEVEN COMMON MONEY PERSONALITIES AND TIPS - WHAT IS YOUR FINANCIAL SPIRIT ANIMAL?:
1. The Squirrel - An avid saver. You get a sense of safety from saving money. You’re highly focused on trying to save as much money as possible. Spending on entertainment or gifts can feel more difficult for you.
- Emmanuel’s Money Advice - Saving and the control it brings can keep your mind at ease in a world of uncertainty. Financial discipline is really commendable, but compulsive saving can be as unhealthy as overspending, especially if you develop an irrational fear of and guilt when spending money, even when you can afford it.
- Every once in a while, trying to purchase something small that you wouldn't ordinarily buy, can help to chip away at the fear and habit.
2. The Camel - You have a tendency to save then splurge. Perhaps you begin the month with good intentions to save and then spend heavily midway through. Or save for a longer period then splurge on bigger ticket items e.g. holidays or home renovations.
- Emmanuel’s Money Advice - Try the 5-need technique. Whether it's a new pair of kicks or a newly renovated kitchen, it can be easy to think we really need something. Note down every time you say ‘I really need an item’.
- Before you splurge, if you haven’t jotted it down at least five times before, don’t buy it. If it has cropped up more than a handful of times, there’s more justification for it.
3. The Wombat – Despite good intentions, you have a habit of getting into situations that don’t have the best financial outcome. But generally laugh about them afterwards. For example – perhaps that time you tried to save money on booking the ‘best deal’ on train tickets and you accidently bought 11pm rather than 11am.
- Emmanuel’s Money Advice: - Lots of us can empathise with having a ‘wombat moment’ in our lifetime - very similar to Carl - an endearing young wombat whose well-meaning yet hapless decisions land him in a pickle.
- Slow everything down. Like an exam question, read everything once, twice, even a third time for good measure.
- Stop subscription fails by setting up a reminder without even touching your phone. Take advantage of your phone’s built-in voice assistance - such as the "Hey, Siri" feature to lock it in your diary.
4. The Puppy - You enjoy a good shopping spree and get a rush from seeing deliveries at the door. Can have a tendency to spend on things you don’t necessarily need. If you’re in emotional distress, the solution can be to spend for immediate gratification. You may continue to spend even if in debt.
- Emmanuel’s Money Advice - Impulse purchases can give you a high — for a second! Over time your brain may associate shopping with short-term pleasure, which motivates you to buy again. Try a cooling-off-period to slow down those spur-of-the-moment purchases. Stop yourself from checking out when online shopping. Hold it there for 24 hours.
5. The Ostrich - Money management can feel overwhelming and daunting. It can sometimes feel easier to avoid or postpone money related tasks. Remembering to pay bills, paying attention to when things like home, care or pet insurance are up for renewal and meeting things like tax return deadlines can feel harder for you. You’re less likely to be a budget person or keep close records of your finances.
- Emmanuel’s Money Advice - Making an intimidating topic feel more fun and accessible is key. Look out for money apps, services, savings accounts and cards that use rewards to help encourage positive spending habits.
- One of the keys to habit-forming learning is to make it fast as well as fun. Start a ‘snack’ approach and set aside 15 minute windows - once or twice a week, and build up. Tick off one thing each session.
6. The Wolf - You tend to be more of a risk taker with your money. There is a thrill associated with promise of significant rewards. You can swing from being cash-rich to cash-poor. You enjoy the highs when things pay off, but can feel quite low if they don’t.
- Emmanuel’s Money Advice - Try making your money harder to get hold of, to resist the urge to splurge. For example, notice savings accounts require you to lock away your money for a set period, requiring you to ‘give notice’ to the savings provider each time you wish to make a withdrawal - typically from 30 - 180 days.
7. The Meerkat - You're a skilled money manager, looking out for better deals and discounts. You want to see your hard-earned money go as far as possible and get a buzz from bagging a great deal. You love sharing your money know-how and tips with those around you. You’re less comfortable with risk and debt
- Emmanuel’s Money Advice - Keep up the good work!
