While some are into the habit of money management, others admit that they take a more “chaotic” approach to their finances according to new survey.
The research, from thinkmoney, found that 64% of people see themselves as good with their day-to-day finances. The majority of people described themselves as “penny planners”, meaning that they stay on top of their expenditure and make every penny count. However, 16% of people said that they were “rubbish with money” and often go overdrawn by mistake. These people admitted to being “chaotic” about managing their money and never really know where they stand financially.
A confident 14% of people described themselves as a “financial whiz”. This means that they know exactly what they’re doing with their money, have a financial plan in place and - most importantly - are sticking to it.
At the other end of the spectrum, 6% of people admitted that they have their “head in the clouds” when it comes to money, believing that “life is too short” to worry about money when there are other things to think about and get on with.
Although men and women gave similar responses, the research did highlight differences in age, with older people believing themselves to be better at managing their money than younger people. Seventy percent of over 65s considered themselves to be “penny planners” compared to 53% of 18-24 year olds. Additionally, only 5% of pensioners described themselves as rubbish with money, compared to 22% of adults under 35.
Regional differences were also highlighted, with people living in Northern Ireland being the most likely to think of themselves as rubbish with money, compared to 11% in the East of England.
Ian Williams, director of communications at thinkmoney, commented on the findings:
“Keeping track of your finances isn't always easy. We all lead busy lives and it can be hard to budget successfully. Sometimes, people need a little extra help to keep on top of their outgoings.”
This statement from Williams highlights the importance of access to financial education and planning tools for the financial wellbeing of people in the UK.