Edinburgh residents have been found to be the most financially confident in the UK, excelling in areas such as saving, investing, retirement planning and overall money management, with Cambridge coming a close second. Despite London being home to the highest percentage of confident investors in the UK (43 per cent), it only ranks third in overall financial confidence. Brighton & Hove and Norwich round out the top five.

Southampton, Sheffield, Bristol, Leeds, and Leicester also show high levels of financial confidence among their residents. Liverpool, however, was identified as the least financially confident city in the UK, ranking just below Belfast, Newcastle, Glasgow and Plymouth.

The study, commissioned by Moneybox and involving 4,000 UK adults, found that those who consider themselves financially confident have nearly double the net worth of those with low levels of financial confidence, regardless of their income. On average, these financially savvy individuals amassed a net worth of £145,000 (excluding properties) – encompassing savings, investments, and pension contributions. This compared to just £78,000 among those less financially confident.

Interestingly, the research also showed that time spent learning about money matters is the most significant contributing factor to higher levels of financial confidence. Brian Byrnes, Head of Personal Finance at Moneybox, the saving and investing app, stated: “When it comes to making the most of your money, building financial confidence can be a real game changer to ensure you are equipped to make the most of all your financial opportunities in life.

“Our research has shown that one of the most important things a person can do to improve their financial situation is simply spending time getting to grips with personal finance topics. This simple step, which we can all choose to take, can have a notable positive impact on so many aspects of our financial lives.

“Whether you spend 30 minutes a week reviewing your budget, researching the best financial products for your needs, or making a plan to help you achieve an important financial goal – time spent on your finances is critical in boosting your financial confidence, and therefore, your financial position over time.”

The study, conducted by OnePoll, also found across the UK only 20 per cent of Brits regularly spend time learning about personal finance topics. Only three in ten consistently make and follow a budget, while only 14 per cent had ever paid for professional financial advice.

The most significant contributing factor to higher levels of financial confidence appears to be time spent learning about money matters
The most significant contributing factor to higher levels of financial confidence appears to be time spent learning about money matters (Image: Getty Images)

When it comes to saving, Cambridge and Brighton & Hove stood out as the most confident, while Belfast and Liverpool struggled most in this category. Despite being 16th on the financial confidence index, Belfast matches London with the highest number of residents feeling confident about investing (43 per cent). In contrast, only a quarter of the population in Glasgow and Newcastle share this sentiment.

Manchester boasts the most residents confident in their retirement planning at 57 per cent, closely followed by Birmingham, Leeds and Edinburgh. Liverpool (42 per cent), Southampton (44 per cent) and Plymouth (44 per cent) are least confident in their retirement preparations. Brian Byrnes, added: “Financial education, both in school and throughout adulthood, has been severely lacking in the UK, which has meant that many are left to figure out how to manage their money and plan for the future through trial and error.

“The financial services industry has evolved a lot in recent years and providers have a host of information and tools available to help guide and support people as they learn how to achieve their financial goals and build wealth for the future. However, more needs to be done, by the government, regulators, and the industry as a whole, to close the advice gap and help boost the nation’s financial confidence and long-term financial resilience.”

The cities ranked from most to least financially confident are:

  1. Edinburgh.
  2. Cambridge.
  3. London.
  4. Brighton & Hove.
  5. Norwich.
  6. Southampton.
  7. Sheffield.
  8. Bristol.
  9. Leeds.
  10. Leicester.
  11. Manchester.
  12. Birmingham.
  13. Plymouth.
  14. Glasgow.
  15. Newcastle.
  16. Belfast.
  17. Liverpool.