The national Financial Capability Survey, after interviewing 5,000 people has found shocking statistics about the state of households’ financial skills. It shows that:
- Only half of families have any life cover
- 21 million do not have £500 or more in savings to cover unexpected bills
- 19 million do not have an approach to budgeting that they feel works
- Around 8 million have problems with debt : of those, just 17% are seeking help
Leading figures from the financial services industry, government and various charities have come together to launch a major initiative to address the worryingly low levels of financial capability in the UK.
The Money Advice Service and the UK Financial Capability Board have published a 10 year plan to improve the nation’s financial capability; this includes managing money day to day, being ready and able to deal with major life events and managing financial difficulty.
Mark Garnier, who spoke at the launch of the report last week and is chair of the All Party Group for Financial Education and Young Enterprise, commented: “Improving the public’s ability to manage money and deal with financial shocks is vital for the nation’s financial health. It is shocking that one in five cannot read a bank statement accurately. We know that early intervention is key; from the age of three children form attitudes and abilities around money. I fully support the Strategy and look forward to working with the Financial Capability Board to ensure that today’s young children do not become over-indebted in adulthood.’