Carry £208 in cash and the jitters set in
£200 in cash - or £208 to be exact - is the maximum amount we are prepared to carry around in our pockets or wallets without feeling too nervous to do so, according to research released by Pay YOUR way, the campaign helping people benefit from modern payment methods.
As more and more people have turned to online banking and online payment methods, it is perhaps unsurprising that the threshold in terms of pounds and pence that we feel comfortable transacting online is over twice as high as for cash. While just over £200 is the magic threshold for carrying cash at which we pause and think ‘what if', when it comes to online transactions our ‘payment nerves' are somewhat more resistant - only kicking in at £480.
Men flash the cash, but women think twice
The stats reveal men are more confident than women when it comes to matters of money - both in the real and virtual worlds. In terms of just carrying cash around with them when out and about, men keep their cash cool for an additional £65, stating they start getting nervous once they have more than £250 (or £253 precisely) in cash on them, while women start feeling anxious at over £180 (£188 exactly).
Our ‘panic' threshold is much higher for online transactions, with men saying they wouldn't feel nervous transferring money online until the value exceeds £600. Women remain the more cautious of the sexes, but still more than doubled the value for online compared to offline, with £418 being the tipping point for nerves to kick in.
The money stress-factor - what makes us money nervous?
So what are the things that are making us nervous when it comes to our money? Almost two thirds (65%) of people say carrying a large amount of cash, while over half (55%) state withdrawing a large sum of money from a cash machine, and two in five (40%) say their nerves kick in when they have a large amount of money at home.
Our nervousness around online payment and banking seems to also focus on security and safety - one third (33%) of people get nervous about whether the computer or network they are using is secure, while 31% worry about whether they are on the authentic website and 29% are anxious about getting the account details right.
Almost one in five (18%) people state they have experienced a sudden feeling of panic when realising just how much they've been spending, followed by 16% who say they had the same feeling when typing in their PIN and 15% when responding to their card's security prompts.
Older generation least nervous about money matters
The research has revealed a sliding scale of money nerves, with the number of people who have experienced stress or panic over financial matters surprisingly decreasing as the age of respondents increases. 66% of those over 75 had never felt stress or panic over the financial situations listed (including making purchases on and offline, answering banking security questions and having trouble accessing money from abroad), whereas only 28% of those aged 18-24 said the same. The same group were also less nervous about carrying large sums of cash around with them than the youngest (63% admitted nerves compared to 74% of under 24s), and when making online transfers (eight percent compared to 17% of under 34s).
Sandra Quinn from the Pay Your Way campaign comments: "We know online shopping and banking is now the norm for many - our research has shown that more than a third of people prefer to shop online than in person and two thirds prefer to bank online rather than in person - but there are still moments of uncertainty for everyone. What the Pay YOUR way research shows is that confidence is growing across all age groups - in fact surprisingly it's the over 75s who have the highest threshold for ‘money nerves' of all! New ways of managing our lives online - from banking to social networking to shopping are pretty much second nature to the vast majority of people in the country."
Buyer's remorse? The moment that panic sets in
The research has also revealed that the moments that cause us anxiety - both on and offline - are those that reveal to us the true extent of our spending. Eighteen per cent of Brits say they've experienced panic when realising how much they've been spending, rising to 22% of women. Other money moments that feature in the list of stress causers include entering PIN numbers in shops or at cash machines (16%), finding the total cost of a shopping bill (15%), answering bank account security questions (15%), and when buying things online (14%).
Despite online purchasing causing some people stress, only 5% said they don't feel confident making financial transactions online, and almost half (46%) said they felt very confident doing so.
Sandra Quinn continues: "It's an ironic truth that people get flustered when answering bank account security questions, because they're one of the very things that help them to stay safe and keep their money out of the wrong hands! It's common to feel nervous when the true extent of your spending is revealed - whether that's checking your bank account online (as some people do daily), opening a statement, or simply seeing the total flash up when you're at the till. Luckily it's easier than ever to keep track of your finances - from online and telephone banking to mobile apps and of course your local branch."
The Payments Council is urging people who want to understand more about their payment options, or to test how much they think they know, to visit payyourway.org.uk/, or to follow the campaign at twitter.com/PayYOURwayUK The website's educational content will be regularly updated and leaflets will also be available.