Investing grows in survey from Moneybox

A survey of 2,000 adults has shown that 32% invested in something other than a regular savings account or cash ISA during 2022, with two-thirds of these individuals doing so for the first time. The cost-of-living crisis motivated 31% of respondents to make their money work harder, and 36% sought better returns than savings accounts.

Although 41% wanted to grow their money and wealth over time, 32% aimed to achieve their long-term goals as quickly as possible. Those between 25 and 34 were most likely to invest last year, with 41% of this generation seeking to grow their money this way. A total of 35% of those polled said they feel more confident about investing in 2023 than before. However, 19% still do not see investing as a viable option for them, with 34% unable to spare the cash at present. Additionally, 30% of respondents were anxious about losing their money, and 22% were hesitant because they didn't feel confident enough.

Moneybox, which commissioned the research, commented that investing is an essential part of any financial plan to help mitigate the impact of inflation over time and build wealth for the future. The survey also found that 34% of respondents claim the cost of living has prompted them to take better control of their finances, while 41% are now prioritising becoming more financially resilient due to the economic downturn. Furthermore, 26% are now planning for the future more than they did before the crisis.

The research also revealed that 29% feel they are better at managing their money now because of the lessons they have learnt from the rising cost of living. Over a quarter of respondents (27%) made a budget for the first time, and one in four negotiated better contracts with a current provider to save some money. Moneybox's Head of Personal Finance, Brian Byrnes, said, "The benefits of building positive financial behaviours early in life cannot be overstated. And it's positive to see the financial challenges endured in the last year have prompted so many to take more control of their finances and start planning for their future."