Over 9 Million Brits Are Blind to Their Spending: The Growing Crisis of Financial Anxiety

In a time where economic uncertainty is a daily headline, a recent study by Aldermore Bank uncovers a startling reality: over 9 million UK adults are in the dark about their spending habits. This growing financial blindness is fuelling a wave of anxiety, especially among younger generations, and paints a sobering picture of how hidden expenses and emotional spending are impacting the nation’s financial well-being. 

Aldermore’s research reveals that one in six UK adults admit they don’t fully understand where their money goes each month. The impact is particularly acute among younger people: nearly a third of those aged 18-34 feel “out of control” of their finances. This disconnection from personal budgets isn’t just a logistical problem—it’s an emotional one. Around 43% of respondents report that money causes them significant anxiety, and 37% say they feel overwhelmed just thinking about their spending. 

These aren’t just isolated cases. The research suggests that financial anxiety is becoming a widespread mental health issue, exacerbated by the lingering effects of the cost-of-living crisis and unpredictable inflation. Many people are left juggling essential expenses while still being hit with unplanned costs. 

Part of the issue lies in “invisible” spending—those smaller, often recurring costs that fly under the radar. Subscriptions, impulse purchases, delivery fees, and even daily coffees can quickly add up. Over 60% of those surveyed admitted to underestimating how much they spend on non-essential items, highlighting the role of hidden expenses in sabotaging financial stability. 

The psychological effects of this kind of spending are also significant. Emotional spending—a response to stress, sadness, or even boredom—is increasingly common, with 40% of adults admitting they spend more when they feel anxious or low. This creates a vicious cycle: spending leads to anxiety, which in turn triggers more spending. 

So, what’s the solution? According to Aldermore’s experts, awareness is the first step. Consumers need better tools to understand where their money goes. This means using budgeting apps, reviewing bank statements regularly, and setting spending limits. Crucially, financial education must become more accessible, especially for younger people who are disproportionately affected. 

Banks and financial institutions can also play a bigger role by providing tools and insights that promote better money management. Proactive notifications about spending trends, personalized advice, and savings goals can help shift the conversation from fear to empowerment. 

The Aldermore study serves as a wake-up call: millions of people are not just mismanaging their money—they’re suffering because of it. As financial pressure mounts, the need for greater transparency, education, and support has never been more urgent. 

By taking control of spending habits and addressing the emotional side of money, UK adults can begin to replace anxiety with confidence. The road to financial clarity may be long, but it starts with a single, honest look at where the money is really going.