Financial Awareness Day: Building Financial Confidence Starts With Understanding Your Money

The 14th of August marks National Financial Awareness Day: time to build your financial confidence.

As a financial wellbeing company, we understand that financial awareness isn’t just about knowing what you earn and what you spend. It’s about understanding your wider financial position and having that financial confidence to make big decisions when they arise.

According to the Office for National Statistics, 1 in 4 UK adults find it difficult to get by financially each month.

With financial pressures continuing to affect households across the UK, understanding your finances has never been more important.

Financial awareness can help people recognise where their money is going, identify potential pressures and make more informed decisions about their financial future. After all, feeling financially aware isn’t about having all the answers. It’s about knowing where to start.

What is financial confidence?

Financial confidence is the belief that you have the knowledge, skills and ability to make informed decisions about your money. It isn’t about knowing everything about finance or always making the “right” decision. It’s about feeling able to understand your financial situation, ask questions, seek support and take action when you need to.

The thing is, financial confidence isn’t experienced equally by everyone.

Financial confidence for women

Our Money & Mindset 2025 report found a persistent gender gap in financial confidence, with men reporting stronger financial understanding than women. This points to a wider difference in financial self-belief, with women potentially feeling less confident in their ability to understand and manage their finances.

Our research also found that women are three times more likely than men to feel ashamed about their finances.

Financial shame can make it harder to talk openly about money, ask for help or feel confident making financial decisions. For women, building financial confidence isn’t simply about improving financial knowledge. It’s also about creating an environment where they feel comfortable engaging with money without judgement.

There are many possible factors behind the gender gap in financial confidence, from historical barriers to women’s financial independence to wider cultural attitudes around money. Understanding these barriers is an important step towards helping more women feel informed, empowered and confident about their financial futures.

Why is financial awareness important?

Financial awareness gives people a clearer picture of their financial situation. When you understand your income, spending, savings, debts and financial priorities, you are better placed to make informed decisions and recognise where you may need additional support.

It can also help build financial confidence. The more comfortable you become with understanding your finances, the easier it can feel to take action, ask questions and plan for the future.

Financial awareness doesn’t mean having a perfect financial plan or knowing the answer to every question. It’s about having enough understanding to know where you stand and what steps you could take next.

How can you build financial confidence?

Building financial confidence doesn’t have to mean making major changes overnight. Small steps can help you become more comfortable with your finances over time.

Start by understanding where you are: Take some time to look at your income, regular spending, savings and financial commitments. Having a clear picture of your current position is a good starting point.

Set realistic financial goals: Think about what matters to you, whether that’s building an emergency fund, paying down debt, saving for a major purchase or simply feeling more in control of your monthly spending.

Don’t be afraid to ask questions: You don’t need to be a financial expert. Seeking information or support when you’re unsure can help you make decisions with greater confidence.

Make financial conversations more normal: Talking about money can feel uncomfortable, particularly when financial shame or uncertainty is involved. Having open, judgement-free conversations can help make it easier to seek support and share experiences.

Check in regularly: Your financial position can change as your circumstances change. Making time to review your finances regularly can help you spot changes, identify potential pressures and stay focused on your priorities.

How can employers support financial confidence?

Employers have an important role to play in creating an environment where employees feel comfortable engaging with their finances.

Financial wellbeing support shouldn’t just focus on helping employees when they are already experiencing financial difficulty. Providing accessible education and resources can help people build their knowledge and confidence before they reach a point of crisis.

Employers can support their people by:

• Making financial education accessible through resources, workshops and educational content.
• Creating a judgement-free environment where employees feel comfortable talking about money and asking for support.
• Signposting employees to appropriate support when they need more help with their finances.
• Recognising that everyone’s financial situation is different and offering a range of resources that meet people at different stages of their financial journey.
• Encouraging regular financial check-ins, giving employees an opportunity to reflect on their financial position and identify areas they may want to work on.

Ultimately, financial wellbeing isn’t about telling employees what they should do with their money. It’s about giving them the knowledge, tools and confidence to make informed decisions for themselves.

Take five minutes to check in with your finances

How financially aware are you?

As part of National Financial Awareness Day, we’ve created a simple Financial Awareness Day Check-In Sheet to help you take a moment to reflect on your current financial position.

It takes just five minutes to complete and can help you understand where you are today, identify areas you may want to focus on and think about the next steps that could help you feel more financially confident.

Download the free Financial Awareness Day Check-In Sheet and take five minutes to check in with your finances today.

Written by Ione Morton, Marketing Executive