A good understanding of investment can enable you to increase your earnings potential and can also offer peace of mind when it comes to money.
So how engaged are the UK public when it comes to investing and personal finances?
The Schroders Global Investor Study 2016 has found that those of an older generation are less confident when it comes to their investment knowledge and less engaged with their own personal finances than those who are younger.
The study surveyed 1,000 UK investors and found that 48% of investors over 35 thought that they had a better understanding of investments than the average investor.
In comparison, 68% of UK millennials (18-35 year olds) felt like they did.
When asked if they wanted to learn more about the subject, 92% of millennials wanted to improve their understanding, with 75% of the older generation wanting to do the same.
The study also revealed that the millennials favour short term investment over long term with the average young person only looking to keep their investment for just over 2 and half years compared to the average of 4.7 years for UK investors.
Over 36s keep their investments for 5.4 years on average.
When it came to seeking advice, financial advisers remained an important influence with 44% of millennials getting a consultation.
39% of the older generation agreed that they would see a financial adviser to receive guidance.
James Rainbow, Head of UK Financial Institutions and Strategic Accounts at Schroders said:
“It is very encouraging that millennials are so engaged with their finances and that they are keen to learn more about investments.
“Given their investment goals, it’s not surprising that millennials have a shorter time horizon however it’s important not to sacrifice longer term goals, particularly retirement savings.
“Different goals, time horizons and attitude to risk will inevitably require a different investment mindset but these should be approached with care and wherever possible, with the help of a professional adviser.”
Engaging with your personal financial planning and investing is essential if you are to make better informed choices with your money.
Many people lack the time, knowledge or inclination to take control over their financial planning.
Knowledge is something that can readily be acquired by reading widely or engaging with an experienced financial planner.