The UK alongside Poland and Germany are the European countries with the highest levels of perceived financial health.
A report by the European Financial Planning Association found the UK scored 4.5 out of a total of 7 points on its perceived financial health by respondents.
Poland received the highest score of 4.6 and Germany came third with 4.4.
Italy and Hungary were at the bottom of the list scoring 4.1 and 3.9 respectively.
The study analysed the financial habits of 14,318 citizens from 12 European countries.
It found 90 per cent of respondents considered their financial health to be critical, with 80 per cent recognising they needed to improve their education to strengthen it.
Among respondents, 51 per cent kept their savings in cash or current accounts, with only 36 per cent saving regularly.
There were notable differences between countries, with the Czech Republic having an occasional savings rate of 86 per cent, compared to 65 per cent in Hungary, which is the lowest level among all countries on the continent.
In terms of which investment products respondents were investing in, funds, shares and ETFs were the most popular (22 per cent), followed by cryptoassets (10 per cent).
According to the report, 58 per cent of Europeans still use banks, insurance companies and networks of advisers who charge commissions.
This model was particularly popular in Italy (68 per cent) and France (69 per cent), it found.
However, just 21 per cent of respondents opted for advisers who combined commissions and fees, while fee-only advisers were used by 17 per cent of respondents,
Some 18 per cent of respondents used digital platforms.
Emanuele Carluccio, EFPA chairman, said: “This report clearly shows that financial health is not just a question of income, but of habits, planning and access to quality advice. The disparity between countries shows that when citizens have more educational tools and a solid planning framework, the results improve significantly.”
“Our commitment, at EFPA, is to continue promoting a stronger and more accessible financial culture across Europe, because having the right knowledge and guidance not only improves money management, but also brings peace of mind, confidence and long-term wellbeing.”
The report also found debt was a common reality for most respondents, with 36 per cent currently holding liabilities such as mortgages or loans.
However, 49 per cent experienced difficulties repaying debt in the past year, and 21 per cent reported overdue payments.
Debt-related challenges were the most pronounced in the UK, Spain, and Hungary, according to the report.
alina.khan@ft.com
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