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Financial literacy is an important life skill, yet according to MoneyTransfers.com, almost half of Britons (41%) don’t know how much they earn after taxes are deducted from their paycheck.
Speaking on the matter, Jonathan Merry, CEO of MoneyTransfers, said,
It’s worrying to see how many people don’t have a clear understanding of their post-tax earnings. This lack of knowledge could lead to financial difficulties later in life, especially when making major financial decisions such as retirement planning. With the costs of living continuing to rise and economic uncertainty remaining high, it’s more important than ever for people to take control of their finances and make sure they are on track to achieve their financial goals.
MoneyTransfers CEO, Jonathan Merry
Brits Savings Culture
The pandemic period reshaped the way most Brits use their resources. For instance, Brits spent less on leisure activities averaging £54.67 each week during the shutdown in 2020–2021.
People learnt the efficiency of working from home during the pandemic. Several entities have widely adopted the practice to date. As a result, working remotely saved individuals an extra £44.78 each week (which included not having to pay for commuting or work lunches).
Using the above scenarios, the entire population of the UK saved an astounding £4.6 billion weekly during the lockdown.
Generally, the Brits have a saving culture. Only one out of ten people lack savings accounts. However, 45% of Britons lack the savings necessary to survive for a month without a paycheck despite having a savings account.
It’s Time to Be Accountable
Accountability is critical to financial success. Too often, people find themselves in debt or facing other financial difficulties because they haven’t been keeping track of their spending or haven’t been saving regularly.
Most Britons don’t know their net pay because of the many deductions they face from their salary. Deductions like pension contributions, student loans, and child maintenance can take a significant chunk out of your paycheck, leaving you with less money to save or spend as you please.
It’s also important to understand your income and expenses clearly to make informed decisions about how to best use your money. If you’re unsure how much you earn post-tax, talk to your employer or accountant to get a clear picture of your financial situation.
Making informed decisions about your finances is the first step to achieving your financial goals. It’s time to take control of your money and make sure you’re on track to a bright future.
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