40% of adults not in control of their finances

Figures released by the Money Advice Service point to a number of startling facts on how people manage their finances.

These include:

  • 20% of people can’t read a 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 16% are seeking help.

Alongside their findings the Money Advice Service and Financial Capability Board have also released a 10 year Financial Capability Strategy. This aims to educate and improve people’s approach to dealing 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

The strategy will look at specific areas including people in financial difficulties, older people in retirement and children and young people.

Educating people on how to manage their finances, as the strategy outlines, is something we strongly believe in. Throughout 2014/15 colleagues in the One Advice Group, of which Harrington Brooks debt management is a part, held a number of “Financial Education for Future Generation” sessions for local students. During the interactive sessions we talked to students of all ages about the consequences of spending and lending and offer simple budgeting tips to keep a track on income and expenditure. You can read more about it in our blog.