Majority of customers, irrespective of whether they are tech-savvy or not, have committed a financial “faux pas”, finds a survey by KeyBank.
The study includes the responses of 1,200 consumers aged between 18 and 70 years.
Of those polled, 54% said that they have made a financial “faux pas” such as a money “false step” or error.
Financial “faux pas” associated with budgeting was found to be the most common type of money misstep. Forty-seven percent of the respondents committing this mistake said that it was due to sudden spending whims.
Notably, despite having more financial confidence, younger respondents were found committing more budgeting mistakes compared to their older counterparts.
The respondents also cited financial “faux pas” on investing, debt management, as well as insurance.
On the positive side, most of the respondents making financial lapses felt that they would recover in five years.
Of those respondents who have made financial “faux pas”, 22% said that they would seek advice from a banker/financial adviser while 26% said that they would look for online resources.
For this year, 65% of the respondents said that they would identify “needs” versus “wants”, set a monthly budget and revisit it weekly, and seek financial literacy courses to prevent financial “faux pas”.
KeyBank behavioural economist in Financial Wellness strategy group Chenna Cotla said: “The path to financial wellness is rarely linear. Inevitably, there will be setbacks, which often present new opportunities to course correct.
“The important thing to remember is there are small steps you can take today—like checking your account balance—that will propel you forward to create a healthy, sustainable and resilient financial future.”