UK Managing Household Finances Consumer Report 2025

Early financial education plays a vital role in shaping individuals’ ability and confidence in managing money effectively as adults. Financial services brands can take an active role both in this early education, and in providing life-long support for adults.

Financial concerns are making it difficult for consumers to think beyond the present. With many still struggling under the weight of rising costs, long-term financial goals are being set aside, as money once saved for the future is now being redirected toward daily expenses.

Digital tools are still a niche choice for many when managing finances, as most consumers prefer the familiar methods they’ve relied on for years. However, younger consumers are increasingly recognising their value, using these tools for support and guidance. This shift is helping them manage their finances more effectively without relying solely on trial and error, and even making household budgeting more enjoyable.

This report looks at the following areas:

• Market dynamics and the key macroeconomic factors impacting household finances
• Responsibility for managing household finances, including demographic analysis
• How well consumers feel they were prepared to manage money, their confidence with money, and how the two are interconnected
• Consumers’ financial habits, including budgeting habits and adoption of digital tools
• Consumers’ financial outlook and how it is shaping their management of household finances

Household finances are generally stable, but many consumers feel the cost of living isn’t improving. As a result, covering essentials and making budgets stretch remain top priorities.

Charlie Landsborough, Financial Services Analyst