Study calls for discussion of money woes in legal profession

Figures from Wealthbrite show that 83 per cent of those working in law regularly worry about money, with two-thirds (69 per cent) worrying at least once a week.

Forty per cent could not last more than one month if they lost their source of income, while a quarter (27 per cent) are regularly relying on credit for food or bills because they have run out of money.

This “money noise” poses significant risks to judgement, performance and workforce stability – those who regularly worry about money are twice as likely to be struggling with decision making at work. They are also 1.5 times more likely to be looking for a new job.

Meanwhile, three quarters (75 per cent) of all those surveyed say they would not admit having money worries to their employer.

In a first-of-its-kind study, Wealthbrite has also mapped how socioeconomic background and adult financial behaviours are linked: the first time this connection has been analysed in any sector, including law.

The data show a clear pattern: individuals from working-class backgrounds experience financial disadvantage that persists even as pay increases. The data reveals a £10,000 class pay gap between those from a working-class background and their more privileged peers.

The report also reveals that more than half (55 per cent) of people surveyed admitted to having problematic behaviours such as splurge spending, gambling, missing payments, drugs and alcohol use.

These problem behaviours are four times more likely to be causing financial problems for people from a low socio-economic background or their household, as compared to their peers.

Carla Hoppe, founder of Wealthbrite, said: “There are silent and pervasive assumptions about wealth in law. Combined with a culture of expertise, a demanding working environment and widespread salary secrecy, these conditions make it harder for people to face or talk about their own finances. This year’s data suggests that this silence is fuelling both risk and inequality across the profession.

“Whether it is inclusion or integrity, we cannot afford to ignore the economics. Financial competence and confidence are professional necessities in law, not personal luxuries.”