A new year means new year’s resolutions. Although some people may look to better their health at the gym or choose to read more in 2024, research from Loqbox, the financial wellbeing business, has found that 84 per cent of its members are looking to establish new financial goals this year, as financial health becomes a bigger priority.
A 2022 study from the UK’s Financial Conduct Authority (FCA) reported that 24 per cent of adults surveyed expressed low confidence in handling their money. Additionally, 38 per cent admitted to having low knowledge and awareness of financial matters. Meanwhile, an ONS study revealed that 42 per cent of adults expect not to save any money in the next 12 months.
However, a stark contrast emerges when comparing Loqbox members’ optimistic savings goals and overall financial wellbeing. It found that 83 per cent of members are looking to set savings goals for the upcoming year, and 53 per cent of respondents declared an improvement in their financial wellbeing since joining Loqbox.
Tom Eyre, co-founder and co-CEO of Loqbox, comments: “As we embark on a new year, the insights gathered from our recent survey paint a compelling picture of the financial aspirations and resilience of our members in 2024. Financial goals are being listed as a key part of many people’s New Year’s resolutions, and this dedication speaks volumes about the drive of UK individuals toward achieving financial stability.”
Tech can provide a helping hand to improve financial situations
Growing Loqbox usage aligns with a broader trend emerging among Brits relying on modern finance tools to improve their financial situations. Data from a PwC study reveals that the UK’s usage of personal finance apps surged by 71 per cent between 2017 and 2022, with people using budgeting apps as tools to track expenses, set budgets, and improve financial habits.
Eyre added: “Our commitment at Loqbox is evident in the transformative impact on our members’ financial lives. While a significant percentage of UK adults express low confidence and knowledge in financial matters, our members showcase a remarkable contrast. Loqbox members are not only setting optimistic savings goals but actively improving their overall financial health. We’re proud to be at the forefront of this positive shift, helping our members take charge of their financial futures.”
Loqbox found that 75 per cent of respondents outline specific goals for improving their credit scores in the next year, showcasing a proactive stance toward overall financial health.
Users aren’t getting carried away this time of year either. Despite a majority refraining from setting a budget during the Christmas holidays in 2023, 63 per cent of members admit to cutting back in other areas to accommodate festive spending. This awareness has caused a setback in spending in areas such as dining out (64 per cent), shopping (50 per cent), social events (46 per cent), and recreation (31 per cent).