Friends' advice loses money

New research shows that one in seven people have lost money after taking a friend's advice.

08:14 16 June 2004

New research shows that one in seven people have lost money after taking a friend's advice.

The research comes from Yorkshire Bank and revels that two out of three people admit they would readily offer advice on subjects they knew little or nothing about.

It also uncovered the fact that fewer than one in four (24 per cent) people have thought about visiting a financial planner to get serious advice from someone who really knows what they are talking about.

Therefore, nearly one in two people (43 per cent) prefer to trust their own judgement when it comes to money rather than admit someone else might know better.

Yorkshire Bank's head of financial planning, Julian Gauld, said: "It's bizarre to think that when we are ill the majority of us wouldn't hesitate to speak to a doctor for expert advice on how to get better. But when it comes to making our finances better we are just as likely to follow what friends and family say or even just go it alone, as we are to ask an expert."

Among other findings, the research revealed that Scots (47 per cent) are the most likely to trust their own judgement, than ask for advice; and Londoners are most likely to give advice without knowing what they're talking about (79 per cent).

Mr Gauld added: "Many people wrongly think that talking to a financial planner will be expensive when in fact making an appointment to see one is free."