A new report from the Money Advice Service claims that over half of British adults are struggling to get by. The report from MAS, which is backed by the government, noted that 52 percent of Britons report struggling with the cost of living, up from a significantly less troubling 35 percent in 2006.
The service polled people regarding their spending habits, noting that many people suffered due to poor financial planning skills and an increase in the cost of life that hasn’t been matched by employee compensation. Many families, instead of building savings, are involved in a ‘live for now’ culture that encourages spending
The last report was carried out in 2006 and indicated a growing trend of families in financial peril. Since 2006, the average income per hour (in real terms, tracked using the average cost of everyday items) has decreased six percent, putting the squeeze on more families than ever before.
Money Advice Service polled over 5,000 families to complete the report, and tracked over 70 families over the course of a year. The service looked at their spending in an effort to track where the average household spent its income, and where it struggled to maintain its financial health.
The report also revealed some troubling facts about everyday financial life. Over 20 percent of participants claimed that they would prefer £200 today than £400 in four months. Over 65 percent of participants claimed that would struggle to cover a £300 expense if it was issued to them with a strict deadline.
Chief executive Caroline Rookes commented on the results of the study, noting that ‘money management is easy in theory’ while claiming that the problems show up as tactics are ‘applied to the real world.’ The group’s primary objective is to improve the public’s understanding of the importance of financial planning.
