Published in partnership with National Numeracy and commissioned by Vanquis Banking Group, the Vanquis Financial Wellbeing Index (VFWI) shows that workers earning up to £40,000 could be saving more and highlights the importance of number confidence on improved financial behaviour.
Spare cash does not necessarily equate to higher savings
The latest edition of the report, which explores the financial realities of UK workers earning up to £40,000, found that:
- The amount of money left over each month rose significantly quarter-on-quarter, from 3% in Q4 2024 to 12% in Q1 2025. This was largely driven by steady income growth (+2%) and a 5% reduction in expenses.
However, the research also showed that:
- On average, workers saved just 1.33% of their income in Q1 2025, only a marginal rise from 1.16% the previous quarter.
- Persistent financial stress appears to be a key factor: 40% report money worries are negatively affecting their wellbeing.
- In response, 35% have taken second jobs, and 42% are working more hours to boost earnings.
If a worker earning £40,000 saved just 5% of their income each month, they could build nearly £20,000 in savings over 10 years at current interest rates. Saving the full 12% that the average worker has left over each month could yield more than £47,000 over the same period. *
The importance of number confidence
Improved number confidence could help people to manage their money better, yet among workers earning up to £40,000, one in four (24%) feel anxious using maths; nearly a third (28%) avoid jobs involving numbers; and 33% say they aren’t “a numbers person.”
Improved numeracy can lead to better financial behaviour
Ian McLaughlin, CEO of Vanquis Banking Group, said: “The latest edition of our Financial Wellbeing Index reveals that more of the UK’s workers are ending the month with more spare cash – an encouraging sign of growing financial resilience. However, persistent vulnerabilities remain, including low savings rates and high levels of financial stress. Improving numeracy confidence provides a potential solution: people who feel confident with numbers are consistently better at budgeting, building savings, and avoiding problem debt. That confidence is a crucial lever in helping people move from surviving to thriving.”
Sam Sims, CEO of National Numeracy said: "The Vanquis Financial Wellbeing Index shows just how powerful number confidence can be in shaping our financial lives. While many are motivated to improve their numeracy for personal growth or better money management, too many still feel anxious or unsure of its value. Bridging that confidence gap isn’t just about maths - it’s about giving people the tools to move from just getting by to building real financial security."
The report is based on actual transactional data from over 2,500 consumers, offering a comprehensive and accurate view of their real-world financial behaviour across essential and discretionary spending categories. This is supported by a nationally representative survey of over 1,000 workers, assessing their attitudes towards their personal finances.
* Calculations based on workers setting aside equivalent amount of earnings, after expected tax, on a monthly basis over a ten-year period with no withdrawals. Based on a compound interest rate of 4%.
Research methodology:
Data Source: Snoop /SpendMapper
Data: The analysis is based on anonymised transactional data from a stable cohort of 2,508 people, covering a two-year period from Q1 2023 to Q1 2025. The data reflects consistent transaction and income history over this time frame. Within this broader cohort, a focused subset of 1,263 participants earning up to £40,000 annually provides targeted insights into the financial behaviours and pressures faced by lower- to moderate-income earners.
Mintel: Consumer Financial Wellbeing Survey on behalf of Vanquis – 2025
Fieldwork dates: 26 April – 6 May 2025
Source: Kantar Profiles/Mintel
Market: Great Britain
Base: 1000 internet users aged 16+
583 earning less than £40k pa
369 earning more than £40k pa
48 preferred not to disclose earnings
Earning over/under £40,000. Higher/lower earners refers to household income when referring to the Mintel data.
Photo credit: Kindel Media, Pexels
