Here's Why Only a Small Number of People are Able to Stick to Their Financial Resolutions

Commitments to save more, invest better, and spend smartly are part of a large number of New Year's resolutions as well as strategies for those entering the workforce, starting a family, or initiating a new phase of life. A recent survey discovered that nearly three-quarters of people have a monthly budget but only a quarter of them, specifically 26%, stick to it. The survey also revealed that half of the people who participated in the survey don't feel very confident when it comes to handling their finances.

Lack of confidence and budgeting

Interestingly, the survey found that older individuals seem to be more confident in managing their finances. About 66% of people aged 55 and over reported feeling "very confident," while only 41% of those aged 18 to 34 shared the same level of confidence. The survey also indicated that those who are confident in managing their finances are more likely to have a budget that they stick to.

It was further observed that almost half of those who lack confidence in managing their finances don't have a budget at all. This is in contrast to the overall average of 27% of people without a budget.

Need for financial literacy

Before making any decision when it comes to investments and budgeting, it is essential to have complete knowledge about every scheme and strategy, which results in insights that help people track their progress. Mary Whitelaw, Chief Sustainability and Corporate Affairs Officer at AIB, emphasized the importance of financial literacy in making informed choices for better financial well-being, stating that AIB takes its role in financial education and enhancing financial literacy very seriously.

According to the survey, more than two-thirds of respondents believe that parents or guardians should be primarily responsible for teaching children about financial literacy, to instill a calculated approach from a young age. In addition to that, a significant 97% of participants feel that financial literacy should be taught in schools. Notably, budgeting and saving money were identified as crucial topics that people wish they had learned in school.

Concerns about sustainability

The survey also delved into the topic of sustainability, revealing that an overwhelming 92% of respondents care about it. However, only 9% of them claim to be doing everything they can to live more sustainably. It's also intriguing that a quarter of those who care about sustainability expressed uncertainty about how to contribute to it. The top ways people are currently trying to help the environment include reducing food waste, recycling, and cutting down on energy consumption.

Whitelaw also expressed the bank's enthusiasm in recognizing and rewarding the exceptional work already being done by schools, students, and teachers towards the goal of achieving sustainability and spreading financial awareness. This includes activities such as volunteering, fundraising, environmental action, skill sharing, teaching, and awareness raising. The organization has invited schools to participate in this push to create an incentive-based model for changing the approach towards financial strategy, savings and investment in the society.