What if you had turned left instead of right? Left home five minutes earlier - or five minutes later? The film Sliding Doors illustrates how the split-second decisions we make every day have the potential to reshape our future. While not all decisions carry significant consequences, each choice leads us down a unique path filled with new opportunities - or challenges. 

In our day-to-day lives, we often rely on heuristics - mental shortcuts - to make quick, effortless decisions without even realising it. But what happens when the choices are more complex, especially in areas we don’t fully understand? Even then, we make decisions, whether actively or by default - like choosing to do nothing. 

A topic where this dynamic plays out profoundly is financial literacy - or rather, the lack of it. While financial literacy may seem like a single concept, its causes and effects are far-reaching and interconnected. 

Let’s explore why so many people struggle to understand money and finances: 

• It’s not consistently taught in schools. 

• Financial topics are often perceived as dull or overly complicated. 

• The terminology feels inaccessible - jargon that alienates rather than clarifies. 

• Messages fail to resonate with people’s everyday lives and concerns. 

The barriers are clear, yet we must all make financial decisions daily. Whether it’s buying coffee, saving a small amount, or buying those new trainers, each choice nudges us in a different direction. 

Risk is another key consideration in financial decisions: 

• Do you go for comprehensive car insurance or opt for third-party coverage? 

• Should you stash your savings in an instant access account for emergencies or lock them away for greater returns? 

• or invest with the hope of greater growth in the long term? 

Benjamin Franklin famously said, “In this world, nothing is certain except death and taxes.”

And if you have limited understanding of how some of these financial products work then it can lead to some poor decisions, and ultimately, unfavourable outcomes. 

What’s less obvious to many is the domino effect of each decision. Financial literacy—or the lack of - not only influences individual choices but creates consequences. There’s a knock on effect. 

Making poor financial decisions doesn’t just derail immediate outcomes; it can send you into a downward spiral. Overspending on credit cards or neglecting to save can close off future opportunities and limit your options. 

Stress and anxiety follow, which further erode your ability to think logically and make sound decisions. This compounding effect means that each “wrong” decision becomes even harder to recover from. 

In essence, financial literacy isn’t about avoiding one bad choice. It’s about understanding how every choice builds momentum toward a brighter future or a more challenging path. The chain reaction. 

Recognising this multiplier effect can empower us to take charge of our decisions, and change course – sooner rather than later. 

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Hummingbird Insights is a specialist qualitative insight agency owned and run by 3 highly experienced researchers.   

Conducting brilliant, qualitative research is a combination of art and science. It takes years of experience. It takes patience. And the ability to look at a challenge through a different lens.  

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