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One in 10 People in UK Admit to Poor Financial Skills, Survey

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A recent study showed that one in 10 British consumers feel that they are bad with money.

Many of them stated that they “blindly” spend their incomes without considering ramifications.

Bad with Money

Research commissioned by PiggyBank found that one in ten people in the United Kingdom felt they were bad with money. The study involved a survey of 2,000 adults throughout the U.K. It determined that even though there is serious concern regarding the future of the British economy, consumers are still spending. In fact, many admitted to spending “blindly” without paying attention of what the possible consequences of those actions may be.

About one in five among those surveyed said that they considered themselves to be “spenders” as opposed to being “savers.” They survey also determined that one in three never considered reducing their spending in order to be able to put more into savings.

Who Needs a Nest Egg?

PiggyBank’s survey showed that 9 percent of adults in the United Kingdom prefer using their income now to saving it to have a nest egg for later on.

A Piggy Bank spokesperson pointed out that “It’s important to keep track of our outgoings. Splashing out without knowing what funds we have is risky and could lead to financial difficulties.”

Getting Savings Started

The research also found that the average adult in the United Kingdom currently has £7,048 in savings. The average monthly savings is £240 of their income.

Among the people who call themselves “savers” more than “spenders,” the majority have created their savings in case they face an emergency and need money. Other reasons that savers put their money away instead of spending it include accumulating the money they need for large purchases. Among the top purchases include buying a car or a house, or renovating a home they already own.

About 23 percent of the survey participants who are saving money are not doing so with any particular purpose in mind. Still, 62 percent stated that they find themselves spending a good portion of what they have saved. Another 27 percent said that they go for months without contributing to their savings.

Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.