Figures published by the Money Advice Service highlight some alarming facts on how people manage their personal finances.
Just some of the statistics include the following:
- 20% of people can’t read their bank statement
- 21 million adults don’t have £500 in savings to help cover unexpected bills
- Of 8 million adults who have problems with debt only around 16% are seeking help.
With their findings the MAS and Financial Capability Board have issued a 10 year Financial Capability Strategy. The overall aim of this is to educate the way people deal with money.
“What the Strategy can and will do is build levels of financial capability to enable more people to navigate changes in their financial circumstances when they occur and help them manage the money they do have.”
Executive Summary, Financial Capability Strategy for the UK
Some of the key focus areas will look at older people in retirement, people in financial difficulty as well as children and young people.
Educating people on managing their finances is something we strongly believe in. Throughout 2014/15 colleagues in the One Advice Group held a number of “Financial Education for Future Generation” sessions for local students.
During the interactive sessions we talked to a range of students about the consequences of spending and lending and offered simple budgeting advice to monitor personal income and expenditure. You can read more about it in our blog.
Details of the Financial Capability Strategy can be found on their website.