Brits Must Change Budgeting Attitudes, Warns Money Education Charity

Credit Action is concerned about Brits’ attitudes towards budgeting, and urges consumers to take a more serious approach when managing their money. That is why the national money education charity is supporting the Financial Planning Week campaign (21-27 November) led by the Institute of Financial Planning (IFP).

According to a survey conducted by the IFP, two thirds (66%) of women and over half (54%) of men say they worry about money either always or most of the time. Yet there are worrying signs that between the ages of 25 and 34 – a crucial period for making long term financial plans – people are failing to make adequate provisions. Only 39% of those in this age bracket have a financial plan in place which they draw up and review regularly.

Michelle Highman, CEO of Credit Action said: “These figures show a dispiriting reality which needs to be addressed. Budgeting is at the core of financial planning, and needs to be taken seriously early on to ensure financial security in later life. It is vital that consumers are empowered with knowledge and tools to help develop their budgeting skills.”

The charity urges people to seriously review their finances and recommends:

Creating, or reviewing, a budget which honestly lists income against expenditure.
Prioritising payments, so that basic living costs or debt repayments can be made.
Considering future financial security and making provisions for a retirement plan.

Credit Action can offer its free online Budget Builder, an easy-to-use interactive tool, to help people draw up and manage a budget. This, alongside the charity’s other useful resources and informative Moneymanuals can be accessed from the Credit Action website

Nick Cann, CEO of IFP comments: “You probably have an MOT on your car each year, and may even get your teeth checked every six months, so make sure you apply the same regular checks for your finances too. Financial Planners can help but otherwise you can use an online tool such as those provided by Credit Action, a spreadsheet or a notebook, to get to grips with budgeting and setting out your goals and plans. With living costs spiralling, working out what you spend and what you earn, and monitoring it regularly has never been more important.”

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