How to See Where Your Money Really Goes
Many people assume their money automatically supports positive causes when they invest, but that’s not always true. Your savings, pension, or investment funds may be funding industries like fossil fuels or tobacco without you realizing it.
This guide will show you how to check where your money is going and take simple steps toward more sustainable investing, without needing a finance degree. By the end, you’ll know how to start aligning your investments with your values.
Why It’s Important to Know Where Your Money Goes
Knowing where your money is invested is the first step to investing with purpose.
Many retail investors have money in pensions, savings accounts, or mutual funds without realizing the companies or sectors they fund.
Sustainable investing is not just about avoiding harm, it’s about supporting companies that create positive environmental or social impact.
Awareness prevents greenwashing, where funds claim to be sustainable but still invest in polluting industries.
You can’t make sustainable investment choices if you don’t know what your money is funding.
Start With Your Current Investments
Before looking for new sustainable funds, it’s important to understand where your money is already invested. This step helps you identify any areas that don’t align with your values and gives you a baseline for improvement.
Step 1: Check Your Pension or Savings Plan
Log in to your pension portal, bank account, or investment platform.
Look for fund names, statements, or portfolio summaries that show your holdings. Many platforms display the top holdings for each fund, which can give you a clear picture of where your money is going.
If the information isn’t clear, call your provider. They are legally required to provide you with details about what your funds are invested in. Don’t be afraid to ask questions.
Keep a note of all the funds you currently hold so you can compare them later.
Step 2: Identify Sectors and Companies
Once you have the fund holdings, check which industries or companies your money is funding. Common sectors include renewable energy, technology, fossil fuels, tobacco and weapons.
Look for anything that surprises you. Sometimes funds that claim to be “responsible” still hold companies in industries you may want to avoid.
You don’t need to analyze every single company, focusing on the largest holdings is enough for a beginner to understand the overall exposure of your portfolio.
Step 3: Take Notes
Create a simple table or spreadsheet to organize your findings.
This helps you see alignment with your values and identify areas where changes might be needed.
Over time, updating this table will let you track improvements in your portfolio as you move toward more sustainable investments.
Even small steps, like identifying one fund that doesn’t align with your values, can make a meaningful difference. Starting with what you already have makes the process manageable and gives you a clear foundation for future changes.
Use Online Tools to Track Your Money
Several free or beginner-friendly tools can help visualize where your money goes:
Morningstar: Shows fund holdings and sustainability ratings.
JustETF: Filters ETFs by ESG criteria.
PensionBee / Nest / other fintech apps: Some show “green” portfolio breakdowns.
Look at ESG or sustainability scores, but also check individual companies, ratings can differ between agencies.
Understanding Fund Labels and ESG Terms
ESG, ethical, and green funds can be confusing for beginners. Here’s a plain-language guide:
ESG (Environmental, Social, Governance): Measures companies on environmental, social, and governance factors.
Ethical / Responsible: Often excludes harmful sectors, but methods vary.
Sustainable / Green: Focuses on environmental impact, but may include social criteria.
Making More Sustainable Choices
Once you know where your money is going, you can start taking action:
Switch funds: Choose funds that exclude fossil fuels or high-carbon industries.
Invest in impact funds: Focus on companies solving environmental or social problems.
Consider ETFs: Typically cheaper and easier to manage, with clear sustainability criteria.
You don’t need to switch everything at once. Even small changes make a difference.
Questions to Ask Before Changing Your Investments
Does this fund match my values?
Is it transparent about its holdings and ESG methodology?
What are the fees, and how do they affect returns?
Does it align with my long-term financial goals?
Sustainable investing is about informed choices, not just good intentions.
Conclusion
Understanding where your money goes is the first step to investing more sustainably. Start by checking your current holdings, use simple tools to see what’s inside your funds, and take small steps toward choices that align with your values. Even tiny changes can make a difference, what matters is starting today.