Making sense of your money this Number Confidence Week

How were you at maths at school? If the thought of being asked to work something out on the board still makes you break into a sweat, you’re probably not alone.

For plenty of adults, that feeling hasn’t gone away. According to ⁠National Numeracy, more than a third of adults experience maths anxiety. And that can make everyday money decisions feel a lot harder than they need to be.

The good news is that you don’t need to be a maths whizz to get more comfortable with your finances. A few small changes to the way you approach numbers can make a real difference.

With Number Confidence Week running from 2–8 November, here are five numbers worth getting to grips with if you want to feel more confident managing your money.

1. Your take-home pay

Your salary might look impressive on a job offer, but it’s your take-home pay that determines how much you actually have to spend each month.

Your gross salary is what you earn before deductions. Your net salary is what lands in your bank account after things like Income Tax, National Insurance and pension contributions have been taken off.

For example, someone earning £35,000 a year won’t receive £35,000 in their bank account. Their actual take-home pay will depend on their tax code, pension contributions and other deductions like student loans.

Why it matters: Knowing your take-home pay gives you a realistic starting point for budgeting. It helps you work out what you can afford, how much you could save and whether a change in salary would make as much difference as you expect.

Try this: Take a look at your latest payslip. Check your gross pay, deductions and net pay. If there’s anything you don’t recognise, ask your payroll team to explain it.

2. Your savings interest rate

If you’ve got money sitting in a savings account, the interest rate tells you how hard that money is working.

You’ll often see this labelled as AER, which stands for Annual Equivalent Rate. It shows the annual interest you’d earn, taking into account how often interest is paid and compounded.

Let’s say you’ve got £5,000 in savings:

– At 2% AER, you’d earn approximately £100 in interest over a year.
– At 4% AER, you’d earn approximately £200.

That’s £100 extra without putting another penny into your savings.

The example assumes the rate stays the same for the year and you don’t make withdrawals.

But there’s something else to keep an eye on: tax

You might have to pay Income Tax on the interest your savings earn, depending on how much you earn and which tax band you’re in.

Most people get a Personal Savings Allowance (PSA), which lets them earn some interest tax-free each year:

– Basic-rate taxpayers can earn up to £1,000 in interest tax-free.
– Higher-rate taxpayers can earn up to £500.
– Additional-rate taxpayers don’t get a Personal Savings Allowance.

The Autumn Budget 2026 also announced a further increase to tax on savings interest. From 6 April 2027, the basic rate will rise from 20% to 24%, the higher rate from 40% to 44%, and the additional rate from 45% to 49%. The Personal Savings Allowance itself isn’t changing.

For example, if you’re a basic-rate taxpayer with £30,000 in savings earning 4% interest, you’d make £1,200 over a year. Your first £1,000 would be tax-free, leaving £200 taxable. At the new 24% rate, you’d pay £48 in tax.

You can also avoid tax on interest by saving into an ISA, where interest is tax-free.

Why it matters: Comparing interest rates is important, but understanding how much you’ll actually keep after tax matters too. A higher rate doesn’t always mean a better return once tax is factored in.

Try this: Check the AER on your current savings account and compare it with other available rates. If you’re earning enough interest to use up your Personal Savings Allowance, look at whether a Cash ISA or Premium Bond account could be a better home for some of your savings.

3. Your pension contributions

Your pension works differently depending on the scheme you’re in, but it’s worth understanding what you’re putting in and what you’re getting back.

If you’re in a workplace defined contribution pension, you’ll usually see contributions shown as percentages of your salary. For example, if you earn £30,000 and pay in 5%, that’s £1,500 a year. If your employer adds 3%, that’s another £900. A total of £2,400 going into your pension over the year, before investment growth, charges or tax relief.

If you work in the public sector, you may be in a defined benefit scheme, such as the LGPS. Your pension is generally based on your pensionable pay and how long you’ve been a member, rather than the size of an investment pot. Your contribution rate depends on your pay, so it’s worth checking your payslip to see what you’re paying.

If you’re an LGPS member, there’s another option worth knowing about: Shared Cost AVCs. These let you save extra into your retirement fund through salary sacrifice, reducing the Income Tax and National Insurance you pay on that part of your salary. Depending on your circumstances, this can make each pound you save go further. You can sign up here.

Why it matters: Your pension is a big part of your overall financial picture, but it’s easy to overlook what your scheme offers. A little time spent understanding it could help you make more of it.

Try this: Check your latest pension statement or scheme portal. Find out how your pension is calculated, what you’re contributing and whether there are ways to save extra. If you’re in the LGPS, check whether Shared Cost AVCs are available through your employer.

4. What your regular spending adds up to

A £12 subscription might not seem like much, neither does a £4 coffee or a £15 takeaway. But regular spending can look a little different when you add it up over a year.

Take that £12 subscription:
– £12 a month
– £144 a year
– £720 over five years

That’s assuming the price stays the same and you keep paying for it.

Now imagine you have five subscriptions at a similar price. You’re looking at £720 a year.

That doesn’t mean you should cancel everything you enjoy. But knowing what you’re spending can help you decide whether you’re getting your money’s worth.

Why it matters: Small regular payments can eat into the money you have available for other things, including savings. Seeing the annual cost can make it easier to decide what stays and what goes.

Try this: Look through your bank statements for recurring payments. Add up what you’re spending each month, then multiply by 12. You might find a few things you’ve forgotten you’re paying for.

5. How much you need in emergency savings

An unexpected bill, a broken boiler or a period without work can put pressure on your finances. Having some money set aside can make these situations easier to manage.

A commonly used starting point is to aim for three to six months of essential living expenses.

Say your essential monthly costs come to £1,500. That would mean:

– One month’s expenses: £1,500
– Three months’ expenses: £4,500
– Six months’ expenses: £9,000

That’s a chunky amount and it might take a while to get there. Your circumstances will also affect how much of a buffer makes sense.

If saving thousands feels out of reach, start with a smaller target. Even £500 could help cover an unexpected expense without reaching for a credit card.

Why it matters: Emergency savings give you a financial buffer when something doesn’t go to plan. They can also mean you have more options when an unexpected cost comes along.

Try this: Work out your essential monthly expenses, then set a savings target that feels manageable. A regular amount taken from your salary on payday can help you build it up gradually.

Getting more comfortable with your money

Our research at My Money Matters found that 39% of employees would still worry about money even if they earned more. Because having more money coming in doesn’t automatically make it easier to know what to do with it.

Getting comfortable with your finances takes time. It might mean checking your payslip properly, understanding what your savings are earning or finally getting your head around your pension. You don’t have to tackle everything at once.

If there’s a figure you don’t understand, ask someone to explain it. If you’re unsure about a decision, get a second opinion. And if you have access to money tools, education or retirement coaching through work, make use of them.

You don’t need to become a maths whizz or a pension expert. A better understanding of a few key numbers can help you see where your money goes, spot opportunities and feel more in control of the decisions you make.

Want to get more confident with numbers?

Number Confidence Week is a good opportunity to brush up on your everyday maths. Visit ⁠National Numeracy to try its free online Challenge and see how you get on.