Money should be the solution to our problems. It’s what gives us a roof over our heads, feeds our families and buys us rewards when we need them. But for many dealing with their finances these days, the reality is very different—it’s a constant cause of stress and anxiety.
To kickstart the Big Banking Chat, we asked 10,000 consumers across Europe and the US about how they felt about their personal finances. The results were staggering. Almost half (49 percent) of all consumers say they are worried about their finances—a stark contrast to just 27 percent of people who say they feel in control. And it turns out that we’re not just worried—we’re nervous, feeling under pressure and very confused. For some, it’s even worse and 15 percent of people we surveyed said they felt overwhelmed by their financial situation.
Money concerns are reflected in our broader life approach
In every country, it appears that a majority of people associated negative emotions with their money—particularly in Germany (84 percent), Spain (82 percent) and Italy (78 percent). Whatever your gender, we’re clearly all feeling the strain.
These money worries are reflected by our broader approach to life—39 percent of us say we’re risk-averse, while 34 percent say they’re happy to take them. This desire to play it safe is an understandable consequence of our financial worries, but also means we’re not pushing ourselves to think differently. It’s why so many people decide to stick with their current bank, even if it’s not the best choice for their financial situation.
The on-going struggle to plan for the future
It’s also clear that worrying about money is preventing many of us from planning for the future and when we do, it’s to prepare for the worst. Just over half of consumers say they have long-term savings goals, and of that half, 36 percent say they are putting pennies away for a rainy day. That’s more people than those that are saving up for retirement or their first home, or stashing away money for their children.
With all that being said, it really doesn’t have to be that way. If people aren’t able to plan for the future, we’ll never feel in control of our finances and these negative emotions continue to cloud over us. This is why we started the Big Banking Chat—to give people the knowledge and confidence to understand how their finances work, but to also provide them with the tools they need to make banking work for them.
Ready to make a change? Check out our tips on how to give yourself a financial health check without leaving the house.
Source: The representative survey was carried out by the London survey institute Sapio on behalf of N26. In April 2020, 10,106 adults in Europe and the USA were surveyed.