Families ‘not prepared for financial disasters’

Young families are increasingly unprepared financially should problems such as unemployment or long-term illness arise, findings from a new poll indicate – suggesting that difficulties with debt could become an issue for many.

As part of its Financial Planning Week campaign, the Institute of Financial Planning – in conjunction with Morningstar – surveyed families across the UK and found that while 84 per cent said they would be able to access funds easily in a crisis, 45 per cent admitted they would be unable to manage during such times.

Alan Dick, a certified financial planner with Forty Two Wealth Management, voiced concerns that the 84 per cent who said they would be able to cope would turn to available credit or other forms of borrowing in order to do so.

The IFP’s chief executive, Nick Cann, recently suggested that those with money management problems should set themselves goals in order to motivate themselves to save.

By Sarah Adie