7 Money facts that will change the way you think about your finances

Whether you love it or hate it, money is one of the things that makes the world go round.

However, like it or loathe it - how much do you really know about those notes and coins in your wallet and your bank account?

In this article, we’re here to tell you some interesting facts and figures about people’s finances in the UK and the world over. From savings to world wealth and even dirty cash, these seven facts about money are bound to change the way you think about your finances!

1. 21% of UK adults have no emergency savings at all

A staggering 1 in 5 UK adults currently have no emergency savings to help them prepare for a rainy day. Research collected by Open Money shows that 21% of adults are leaving themselves in a very fragile position with their finances.

In the event of a financial emergency or a change of circumstances could see around 1 in 5 of the population struggling financially to pay things such as their bills, living expenses and event their rent and mortgage payments.

Lack of any savings or an emergency fund could mean that a fifth of the UK could have to take out an emergency loan to cover their living costs in a financial emergency.

2. A third of UK adults have less than £600 in savings

Following on from our previous fact, while a fifth of the population has no money at all in their savings account, a third admitted to currently had around £600 saved for the event of an emergency.

While having an emergency savings fund for those unexpected surprises is a given for many, £600 is currently £69 less than the average monthly mortgage payment in the UK which stands at £669 and £268 less than the average monthly rent payment of £868.

Which could still leave a third of the population to cover the costs of their monthly rent payments, not accounting for things such as living expenses and utilities.

3. 78% of people on low incomes are missing out on extra help

According to the charity Turn2Us, almost 8 million people in the UK are missing out on £18 billion worth of benefits that go unclaimed every year. It’s estimated that 12% of the population that is currently living on low incomes are entitled to extra support from the government which they are going without.

If you are currently struggling to live on a low income or think that you could be entitled to more support for you and your family than you are receiving at present, then you can visit Turn2Us and use their Benefits Calculator to see what extra help you could get.

4. It would take 26 years and eight months to pay off average credit card debt

Back at the beginning of March 2020, the Money Charity reported that it would take 26 years and eight months to pay off the average individual’s credit card debt by only making the minimum payment each month.

And yes you read that right, it would take just a little over a quarter of a century to pay off your credit card bill!

5. Only 8% of the world’s currency is in cash

According to Business Insider, there is currently around 80 trillion dollars of ‘broad money’ in excess (that’s about 61.6 trillion pounds), and just a small fraction of 8% is currently in circulation in physical cash.

The term ‘broad money’ refers to any money which is held in bank accounts or coins or banknotes.

So that’s around 6.4 trillion dollars (about 4.9 trillion pounds) in cash alone!

The other 92% of the world’s wealth is currently stored away and only exists in the form of electronic bank accounts and hard drives!

6. The top 1% of wealthiest people in the world own 50% of the world’s wealth

The top 1% of the wealthiest people in the world (that includes people such as the likes of Jeff Bezos and Bernard Arnault, amongst many others) own around half of all the world’s wealth - which leaves the other 99% (6.9 billion) of the world with the additional 50%.

For perspective, to be in the top 1% of earners in the UK, according to the Institute for Fiscal Studies, it is reported that you must earn an annual taxable income of at least £160,000.

7. There are more germs on a pound coin than there are on a toilet seat

Now we were hardly expecting money to be squeaky clean - seeing as it gets passed around from person to person so much while in circulation (the average life expectancy of a coin is around 40 years).

However, did you know that that pound coin in your pocket could be harbouring more germs than your toilet seat is? Yes, it’s true! In fact, quite some time ago the Daily Mail reported that more germs were found on a £1 coin than they were on a regularly cleaned toilet seat!

Which is a gentle reminder to always wash your hands after handling any money!