One in 10 consumers admit they’re bad with money, according to a study. Researchers polled 2,000 UK adults and, despite the age of austerity, found many are ‘blindly’ splashing the cash without any thought for the potential consequences.
In fact, around one-fifth of the population went as far to describe themselves as ‘spenders’ rather than ‘savers’. Amid this, one third have never even considered cutting back on their outgoings and putting more money into their savings.
The report commissioned by PiggyBank, the research also found nine percent prefer to spend their income and enjoy it now – rather than build a nest egg.
A spokesman for PiggyBank said: “There’s no denying having a bit of a spending spree every now and again is fun. We work hard and absolutely should be able to spend as we please, however it’s important to keep a track of our outgoings. Splashing out without knowing what we have funds have is risky and could lead to financial difficulties.”
The report also found that the typical UK adult has £7,048.13 in savings and saves £240.57 of their income on average each month. Of those who save rather than spend, most – 44 percent – have done so in case they need the money for an emergency. Other saving targets include buying a house, a car and home renovations – however, 23 percent aren’t saving for anything in particular and 62 percent revealed they end up spending much of what they put aside and 27 percent admit they have months where they are unable to save.
Four in 10 keep all of their savings in a savings account and 66 per cent said this is their preferred way to put money aside. But two in five of those polled have no idea how much interest they earned on their savings over the past 12 months. And 53 percent don’t know what the current interest rate on their savings is.
Worryingly, two in five people have never had a savings account and almost one in 10 admit they keep their savings hidden throughout their homes.
Carried out through OnePoll.com, the research also found, instead of saving, almost one quarter have opted to invest – with the most popular investments being property, gold and jewellery. However, almost half of those polled would be more likely to put money into a savings account if interest rates increased.