Nearly half of UK adults – over 20.3 million people – are living in financially vulnerable circumstances, according to a report. As the world’s economy continues to stumble, taking individual responsibility for your savings and investments is more important than ever. In fact, searches for “best ways to save money” have soared by 190% over the past month, while queries for “how to invest” average 35,000 a month.
So which nations’ residents are the most responsible with their money?
Interested in this, the forex experts at BrokerChooser have investigated how smart people around the world are with their income, to understand which country’s citizens are the most – and least – fiscally responsible. For those struggling to grow their wealth, head broker analyst Adam Nasli has provided five tips on how to stay conscious of your cash.
Key findings:
- The UK ranks among the bottom 10 least money-conscious nations, with Brits saving just 4.74% of their income and investing only 4.48% of their financial assets.
- Switzerland is the most financially responsible nation, with almost a fifth (17.48%) of household income going straight into savings.
- Despite having the greatest financial assets, Americans are among those least likely to save.
- Adam Nasli, Head Broker Analyst from brokerage and forex experts BrokerChooser, advises on how to become smarter with your cash.
The 10 least financially disciplined countries
| Rank | Country | % of household income in savings | % of investment funds as financial assets | Financial assets per household | Financial assets to gross income ratio | Financial Discipline Score (/10) |
| 1 | Latvia | 0.02% | 1.50% | $50,604.23 | 2.13 | 3.36 |
| 2 | Lithuania | 3.83% | 2.18% | $56,472.32 | 1.92 | 3.95 |
| 3 | Greece | -9.30% | 6.12% | $64,639.60 | 2.46 | 4.61 |
| 4 | Colombia | 6.45% | 3.21% | $20,906.44 | 1.35 | 4.78 |
| 5 | Mexico | 6.77% | 2.09% | $24,401.80 | 1.38 | 4.81 |
| 6 | Slovakia | 1.96% | 11.41% | $41,968.03 | 1.57 | 4.94 |
| 7 | Poland | 6.06% | 5.43% | $46,355.72 | 1.60 | 5.33 |
| 8 | United Kingdom | 4.74% | 4.48% | $140,974.30 | 3.68 | 6.25 |
| 9 | Estonia | 3.03% | 13.30% | $72,637.39 | 2.90 | 6.30 |
| 10 | Portugal | 4.58% | 6.68% | $103,807.34 | 3.19 | 6.33 |
Interestingly, despite being the sixth greatest economy in the world, UK residents place in the bottom 10. Even though the value of their financial assets is far above all other nations in the bottom 10 ($140,974.30), they consistently fail to save (4.74%) and gather assets in investment funds (4.48%). Moreover, over 10 million people in the UK have cut the amount they save or stopped saving completely, a report finds.
Latvians are some of the worst with their money of any nation analysed, with a financial discipline score of 3.36/10. A significant factor leading to this lack of fiscal responsibility is a poor savings contribution: Latvians save practically none of what they earn (0.02%) – and those in Greece actually spend 9.30% more than their earnings.
However, it’s the nation’s lack of investments that sets them back most. With just 1.50% of financial assets taking the form of investments, Latvia’s citizens have the fewest investments in their portfolio of any country analysed.
The 10 most financially disciplined countries
| Rank | Country | % of household income in savings | % of investment funds as financial assets | Financial assets per household | Financial assets to gross income ratio | Financial Discipline Score (/10) |
| 1 | Switzerland | 17.48% | 13.59% | $370,363.57 | 7.86 | 9.54 |
| 2 | Sweden | 15.77% | 10.78% | $246,004.10 | 7.18 | 8.96 |
| 3 | Canada | 5.78% | 21.96% | $236,099.78 | 6.29 | 8.77 |
| 4 | Belgium | 6.59% | 18.67% | $194,808.03 | 4.85 | 8.66 |
| 5 | Denmark | 8.46% | 7.14% | $299,768.14 | 9.12 | 8.52 |
| 6 | Spain | 9.22% | 16.40% | $112,186.69 | 3.28 | 8.22 |
| 7 | Germany | 11.25% | 13.57% | $158,471.41 | 3.43 | 8.18 |
| 8 | United States | 4.89% | 13.00% | $383,241.01 | 6.11 | 8.00 |
| 9 | Netherlands | 9.55% | 3.66% | $249,561.88 | 6.26 | 7.85 |
| 10 | Luxembourg | 5.00% | 13.00% | $221,691.15 | 4.08 | 7.81 |
Switzerland – with a financial discipline score of 9.54/10 – is the most fiscally savvy nation analysed. The region places second for financial assets per household at $370,363.35, only ranking lower than the United States ($383,241.01), which comes in 8th overall. The nation ranks high for several metrics analysed by BrokerChooser, and leads for the percent of household income in savings. Almost a fifth (17.63%) of the nation’s income goes into savings: more than triple the amount of Canada (5.78%) in third place.
Sweden just missed out on the top position with a financial discipline score of 8.96/10. While the nation doesn’t lead for any analysed metrics, they do perform consistently well on all rankings. 15.77% of household income goes into savings – 1.7% lower than Switzerland, and at $246,004.10, Swedes boast about $50,000 more in financial assets per household than those in Belgium – which ranks fourth.
Canada takes the bronze medal, boasting the highest percent of residents’ investment funds in financial assets. More than a fifth (21.96%) of the country’s assets are in the form of investments, reflecting previous findings from BrokerChooser demonstrating Canadians’ common curiosity into stocks and shares – driving their overall financial discipline score of 8.77/10.
United States fails to make the top 5
Despite the greatest financial assets in the study ($383,241.01), Americans’ savings struggles drastically reduced their financial discipline. With just a miniscule 4.89% of earnings going into savings, the US’ households are the second worst savers across the entire top 15 – after Italy (4.21%) – and earn a financial discipline score of 8.00/10.
Adam Nasli, Head Broker Analyst from brokerage and forex experts BrokerChooser, gives five tips on becoming more financially savvy:
“1. Automate. Where you can, automate your finances to ensure that you’re not procrastinating the important things when pay-day comes. Set up automatic transfers, retirement contributions and regular bill payments that mean you can remain assured that the essential bills will always be paid for. If you can, try to make sure these payments are made soon after you receive any income.
2. Create saving and investment targets. Don’t just try to save generally – create feasible, regular savings and investment goals that you can meet. Giving yourself a realistic target to meet on a consistent basis will improve your chances of improving the state of your finances.
3. Decide on a spending rule. Many people take a 50/30/20 approach – this is where 50% of your earnings go into necessities – like a mortgage or groceries – 30% goes into unnecessary, but more emotionally rewarding purchases – like a hobby – and 20% goes into savings or investments. This system may work for you, but if it doesn’t, look into your accounts and figure out a spread that matches your needs.
4. Invest early, not perfectly. If you’re waiting for the perfect time to invest, then you will be waiting a long time to get round to it. You might start with safe, diversified vehicles, like broad index funds, and contribute a regular amount. Remember: you build wealth from patience and consistency.
5. Review your finances monthly. If you are saving for long term, there’s usually no need to check the state of your investments and savings too often – this can lead to anxiety. Each month, check on your contributions, the rate of your spending and adjust any contributions. This lets you stay on track without micromanaging your finances.”
