I’m
not sure whether to laugh or cry……how did it get this bad? Who is to blame?
Perhaps more importantly though……what action will be taken?
Last
week the Money Advice Service (an independent arm of the Government funded by
the Financial Sector……so we can trust them……kind of) launched a 10 year
Financial Capability Strategy. The aim is to improve the ability of adults to
manage money day-to-day and deal with financial difficulties.
My
initial reaction was to question whether this was really a good use of the vast
cost involved (I would say that though……I am part funding it!!!!)……but then the
rationale for the Capability Strategy was spelt out:
1. 1 in 4
adults are not in control of their finances (19 million adults don’t have an
approach to budgeting that they feel works).
2. 1 in 5
adults cannot read a bank statement.
3. 1 in 4
adults have less than £500 in savings. This equates to 21 million people who
don’t have sufficient savings to cover unexpected bills like replacing the
fridge or mending the car.
4. 1 in 3
adults cannot calculate the impact of a 2% annual interest rate on £100 in
savings.
5. Only 50%
of families have any life cover.
With
figures like these, you would never think we were one of the world super powers
with an economy that many nations would be envious of.
Surveys,
strategies, initiatives, thematic reviews, etc. are all well-intentioned but
they are only ever as good as the actions they evoke and the calls to actions
that are fulfilled.
Time will tell. Watch
this space
Hi Steve, I believe the government want people to be somewhat thick with their finances or they would have incorporated good quality education in schools on the subject years ago, maths is one thing but financial nous is another.
ReplyDeleteAn interesting point Paul……but is it not in the Government’s best interests to have a financially savvy population? The more you know, the better you save, the less of a burden on the state you are in retirement!
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