New Year’s Financial Resolutions: Prioritizing Financial Health in 2024
The start of a new year often brings with it resolutions aimed at self-improvement. While some focus on fitness goals or reading more books, a recent study conducted by Loqbox, the financial wellbeing business, indicates that an increasing number of individuals in the UK are making financial health a top priority in 2024, as outlined in The Fintech Times.
According to Loqbox’s research, a staggering 84 percent of its members are determined to establish new financial objectives this year. This shift towards prioritizing financial wellbeing comes in the wake of a 2022 study by the UK’s Financial Conduct Authority (FCA), which found that 24 percent of surveyed adults lacked confidence in managing their finances. Furthermore, 38 percent admitted to having low knowledge and awareness of financial matters, while another study conducted by the Office for National Statistics (ONS) revealed that 42 percent of adults expected not to save any money in the coming year.
Interestingly, Loqbox members appear to be taking a more optimistic approach to their financial futures. The research found that 83 percent of Loqbox members plan to set savings goals for the year ahead, with 53 percent reporting an improvement in their financial wellbeing since joining the platform.
Tom Eyre, co-founder and co-CEO of Loqbox, commented on these findings, stating, «As we embark on a new year, the insights gathered from our recent survey paint a compelling picture of the financial aspirations and resilience of our members in 2024. Financial goals are being listed as a key part of many people’s New Year’s resolutions, and this dedication speaks volumes about the drive of UK individuals toward achieving financial stability.»
The growing usage of Loqbox aligns with a broader trend across the UK, where more people are relying on modern finance tools to enhance their financial situations. Data from a PwC study reveals a 71 percent surge in the usage of personal finance apps between 2017 and 2022. These apps help individuals track expenses, set budgets, and improve their financial habits.
Eyre added, «Our commitment at Loqbox is evident in the transformative impact on our members’ financial lives. While a significant percentage of UK adults express low confidence and knowledge in financial matters, our members showcase a remarkable contrast. Loqbox members are not only setting optimistic savings goals but actively improving their overall financial health. We’re proud to be at the forefront of this positive shift, helping our members take charge of their financial futures.»
The study by Loqbox also revealed that 75 percent of respondents have specific goals for improving their credit scores in the upcoming year, demonstrating their proactive approach to overall financial health.
Interestingly, despite the holiday season’s usual extravagance, Loqbox members exercised restraint. While the majority refrained from setting a budget during the 2023 Christmas holidays, 63 percent of members acknowledged cutting back in other areas to accommodate their festive spending. This heightened awareness resulted in reduced spending on dining out (64 percent), shopping (50 percent), social events (46 percent), and recreation (31 percent).
As we enter 2024, it is evident that a significant portion of the UK population is prioritizing financial health as part of their New Year’s resolutions. With the help of modern finance tools and platforms like Loqbox, many are taking proactive steps towards achieving their financial goals and building a more secure future.