Research from specialist lender Pepper Money suggests confidence, rather than income alone, is a growing barrier to effective money management across the UK.
Nearly one in four UK adults say they lack confidence when comparing financial products, according to new research from Pepper Money, raising concerns about how households navigate everyday financial decisions.
The lender’s latest Specialist Lending Study finds that 24% of adults feel unsure when weighing up financial products, from credit options to debt repayment choices.
The data points to a widening gap in financial resilience, with confidence levels lowest among women, younger adults and those on lower incomes.
The generational divide is particularly pronounced. More than half of adults aged 18 to 24 (51%) say they are not confident making financial decisions, compared with just 27% of those aged 55 and over.
The research suggests younger adults are grappling with high living costs, student loan repayments, lower early-career earnings and increasingly complex credit options, often without feeling equipped to make informed choices.
A gender gap is also evident. Only 58% of women say they feel confident making financial decisions, compared with 72% of men. The findings indicate that millions of women may be more likely to disengage from mainstream financial services or risk making costly mistakes due to a lack of confidence rather than a lack of need.
Uncertainty is not limited to product choice. Almost one in five adults (18%) admit they do not know which debts to prioritise, suggesting that financial stress is being compounded by confusion as well as affordability pressures.
Despite these challenges, the study highlights strong public support for reform. More than eight in ten adults (83%) back the introduction of financial literacy into the national curriculum, reflecting widespread recognition that education could play a central role in improving long-term financial resilience.
Paul Adams, sales director at Pepper Money, said: “Financial confidence is as important as financial income. We’re seeing that people aren’t just under cost pressures, they’re unsure what decisions to make, which could cause a cycle of money mismanagement.
“When someone doesn’t know which debt to prioritise or the right product to choose, the risk of falling into longer-term difficulty rises.
“Improving access to guidance and specialist support is key to preventing short-term stress turning into lasting financial damage.
“This is where the role of brokers is particularly key to help advise and guide people, particularly those who may be uncertain on the options available to them.”
