20th March 2014
'Britains Money Management Barometer' Launched To uncover our true relationship with money
What is Britain’s relationship with money really 20like? How many of us were taught the basics of financial literacy; how to budget, save or indeed invest?
To find out, TD Direct Investing has launched the Britain’s Money Management Barometer, created in partnership with Leeds Business School’s Faraday Research Centre. The Barometer is designed to help us identify our relationship with money through a Perceptions of Money Instrument, a unique survey which compares our perceptions with actual behaviour.
The tool was developed by the TD team and Dr Martin Samy, an expert in research and financial literacy. Dr Samy, who had identified that many people’s financial hardships were due to a misunderstanding of their relationship with money, said: "Relationships (of any kind) are created through the two factors of perception and behaviour. It is the difference between how you perceive yourself and how you act that provides you with an index or score that simply assesses your relationship with money and, in turn, helps you to make effective financial decisions.
"The Barometer has been developed to support personal reflection on the current situation– this isn’t about providing financial advice, but helping people to have an understanding of their own relationship with money."
This unique tool features a series of questions that have been designed to uncover how we spend, save and seek information. On completion, It provides individuals with a score that determines how good their relationship with money is – based on their perception vs what’s actually happening.
TD CEO Stuart Welch said: "TD is committed to helping consumers to make confident investment decisions by providing them with the tools and information they need. However, we realise that, if the industry is going to successfully support the development of financial literacy in the UK, then we also need to help raise awareness of the benefits of good financial understanding and management.
Stuart Welch continued: "The first step is to help people understand their relationship with money – how we think and how we behave can, at times, be poles apart. The launch of this tool, is part of our ongoing activity to support those looking to have a better understanding of saving and investing."
The impact of static interest rates and the growth in attractiveness of different investing products, such as ISA’s and SIPPS, means that consumers are becoming more interested in looking for alternative routes to manage their finances. However, many struggle to understand where to start and find that their intentions do not always match the outcome.
And, with time running out for savers to make the most of their tax free allowance for the year, this tool is an effort to get people thinking about their relationship with money and how this impacts their approach to saving and investing.
Gauge your relationship with money by taking The Barometer.
The results of the survey will provide participants with insight into their own behaviours as well as how they compare to the rest of the UK.
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