More than one in five (22%) people avoid looking at their bank balance because of feeling anxious about their finances, a survey has found.
This rises to more than a third (35%) of millennials aged 28 to 43 and some two-fifths (43%) of Gen-Z adults aged 18 to 27, according to a savings tracker from Aldermore.
One in seven (14%) Gen-X adults (aged 44 to 59) and and 5% of baby boomers (aged 60 to 78) also adopt the “head in the sand” strategy.
One in nine (11%) of those who avoid reviewing their spending said they have saved less than £100 over the past year.
Nearly two-thirds (62%) of people said they have dipped into their savings in the past year with nearly three in 10 (29%) saying they had done so in the past month.
Some people surveyed also did not know how much they spend on outgoings such as childcare, mortgages or rent, utility bills, TV packages and gym memberships.
More than a third (36%) said they use their overdraft, meaning some could be accumulating overdraft charges they are unaware of if they avoid looking at their balance.
Alex Myers, head of savings at Aldermore, said: “Our research shows that many UK adults are flying blind when it comes to their essential spending.
“This data is a wake-up call – if you’re not tracking your expenses, you risk falling into a cycle of debt and diminishing your savings.
“The solution isn’t about cutting back drastically, but rather about taking small, consistent steps to understand and manage your money better.”
Opinium Research surveyed 3,000 people across the UK in January, on behalf of Aldermore bank.
Here are some ways that people can get on top of their bank balance:
1. Make the most of banking apps and notifications to keep on top of your bank balance and avoid overdraft charges.
2. Check the regular payments you have set up on your account to avoid surprises.
3. See if you could make subscription costs or other household bills cheaper by going for “no frills” options or switching providers.
4. Consider how you use your bank account and if there could be other deals that may suit your needs better, for example by looking for less expensive borrowing options or accounts that offer rewards.
5. Many households have money sitting in accounts paying little or no interest, so see if you could make more of your money by moving it into a higher interest-paying account.
