Today, new research from global payments provider Klarna reveals that although consumers in the UK are less likely than their global counterparts to openly discuss money, there are signs that younger Brits are becoming increasingly more willing to discuss financial matters with friends and family.
Klarna’s research was conducted in ten markets across the globe and uncovered the attitudes and behaviours of over 20,000 consumers towards money management – over 2,000 respondents were from the UK. Findings show that while a third (38%) of Brits think it is important to talk openly about money, only 31% feel comfortable discussing finances with their friends, an 11% drop from the global average of 42%.
In the UK the research highlights a significant difference between generations with younger people considerably more likely to open up about money than older generations. 35% of millennials in the UK feel comfortable discussing finances with their friends, compared to only 25% of older generations. A similar difference is also found when discussing salaries, with the research uncovering that 31% of millennials openly discuss their salaries with friends, a figure which drops to only 20% of those in the older generation.
As well as finding that UK consumers are becoming increasingly likely to discuss money the research also highlighted that Brits – and millennials in particular – are using new methods to manage their money. Technology is one of the most important ways people in the UK do this, with 41% of Brits saying that technology allows them to keep track of their spending in real time and 42% saying it enables better oversight of their overall finances.
Millennials in particular value the flexibility and ease of money management that technology provides, with 1 in 5 saying that being able to manage their money anytime, anywhere, is most likely to drive their loyalty towards a financial services provider. They are also the generation that is most likely to want flexible payment options, with 18% of millennials saying that these increase their trust and loyalty to a provider, compared to 13% of older generations.
Commenting on the research, Luke Griffiths, general manager at Klarna UK, said: “It’s great to see that tech-savvy millennials are breaking tradition and being more open about money. In fact, 57% of Brits think that different generations can learn from and help each other in matters of money management. Whether it’s younger consumers being more open, or older generations embracing the latest technology for better flexibility and convenience, we can all learn a lot from each other when it comes to money management.”
The findings come as Klarna launches its first Consumer Council next Tuesday (10th March 2020), a global initiative designed to give consumers a platform to talk openly about money management and financial habits. The Consumer Council is another step in Klarna’s commitment to provide the smoothest and smartest experience to consumers. It sits alongside Mindful Money, an initiative created to offer tips and guidance on financial wellbeing and help consumers better manage their money.