Financial literacy class: Why are the British so reluctant to invest?

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Specification:

• Investing

Summary

This article explores the reasons many Britons prefer to hold their money in cash rather than investing in the stock market. Although keeping money in cash feels safer, inflation can reduce its value over time. Some reasons for this reluctance include cultural attitudes, a desire for easy access to funds and a lack of confidence or knowledge about investing.

Additionally, investment platforms in the UK are trying to encourage investing by simplifying options and providing educational resources. Compared to the US, where more people invest due to higher costs for education and healthcare, British people often rely on cash for financial security.

Click to read the article and then answer the questions:

Why are the British so reluctant to invest?

Questions

• Why might people feel that keeping cash is safer than investing in stocks?

• What are some risks of keeping large amounts of savings in cash instead of investing?

• If you had extra money saved, would you feel comfortable investing it? Why or why not?

• How do you think learning more about investing could change the way you plan to save or grow your money in the future?

Tim Ranzetta, Next Gen Personal Finance