By Christian Abbott
Santander has issued a warning for millions of customers on certain salaries. Santander says 拢40.7 billion is being left on the table as it tries to “unlock” the financial firepower of the UK’s one million “Self-Mades”. 拢40.7 billion in under-utilised cash savings could be invested into fuelling UK economic growth, it said. It belongs to the UK鈥檚 one million 鈥楽elf-Mades鈥 鈥 who come from a low-income household, but who are now higher earners. Despite their high-income status, twice as many Self-Mades (28%) don鈥檛 invest at all in comparison to other high-income earners (15%). The Self-Made cohort – 14% of the country鈥檚 high-income earners – on average have almost 拢40,000 in cash reserves. READ MORE Next UK heatwave set to be ‘even hotter than expected’ and will start within days Yet, many aren鈥檛 exploring their options around how to manage their money, owing to a lack of financial confidence. Self-Mades are individuals from modest beginnings who now sit among the UK鈥檚 top 20% of earners. Unlike many high earners who followed traditional academic routes, Self-Mades are nearly twice as likely as other high earners to leave school and head straight into the workforce or apprenticeships and more likely to work in construction and skilled trades.. While more than a third of those Self-Mades in white collar jobs say they are the first in their families to work in such professions. More than one in four Self-Mades don鈥檛 invest any of their monthly earnings – nearly double the rate of other top earners. Kitty McCormick, Head of Wealth at Santander UK said: 鈥淭his is a story of unlocking potential. It鈥檚 more than just a missed opportunity for individual growth; bridging the investment gap among the Self-Mades through targeted financial education could inject billions into the UK economy, with benefits for communities and the wider economy. “The Self-Mades have proved their earning potential. Now it鈥檚 time to back them with the tools, knowledge and confidence to make their income work harder for them.鈥 Santander is calling on the Government to embed financial education into apprenticeship schemes, to give people who are going through training 鈥 the future Self-Mades – the best chance for financial success. By capturing a younger audience, the Government can create significant long-term benefits and lifelong investment habits to support the Self-Made.