Financially Uneducated Brits Unable to Manage Money
A lack of financial knowledge is leaving Brits unable to manage their money, a new study reveals.
Half of Brits think they will have at least £25 less each week to spend following the recent VAT hikes, welfare cuts and other public spending changes.
More than a quarter expect to by at least £50 a week worse off.
The research by Learndirect showed two thirds feel too confused to make the best choices with their money, while a third admit they do not have the rights skills to successfully manage their finances.
“People need the confidence to make good financial decisions, but this research shows that many don’t think they have the right skills to do that,” said Jasmine Birtles, independent financial expert.
The study also showed that more than a quarter of people struggle to work out the best value for essential outgoings such as energy rates, mobile phone packages and TV subscriptions.
The small print and jargon at the bottom of financial products outlining further details are a problem for one in four who struggle to understand this, and nearly one in ten sign up for products and services that are not right for them because of this.
A further 80 percent are unsure which benefits and allowances they are entitled to in the products they subscribe to.
Personal Debt Expected to Continue
As Britain tries to pay off the budget deficit, the public is experiencing tax increases, welfare cuts, frozen pay, and redundancies, meaning 2011 is expected to be ridden with high personal insolvency cases.
The Insolvency Service showed 2010 saw an increase in England and Wales of insolvencies, from 134,142 to 135,089.
“Citizens Advice Bureaux are seeing more and more people coming to us for debt advice, and with money worries,” added John Rhodes, Citizens Advice head of financial capability.