Money management ‘only going to get tougher’

Consumers are finding it increasingly difficult to manage their money.

Research conducted by ING on behalf of the financial education charity pfeg (Personal Finance Education Group) discovered 60 per cent of adults find looking after their finances tougher now than they did ten years ago. 

On top of this, 63 per cent are worried the move towards a cashless society – as online and mobile banking becomes increasingly prevalent – will make it even harder for youngsters to keep on top of things.

An area of real concern for people is that only five per cent of Britons believe teenagers are leaving school with the necessary financial skills and knowledge to look after their own money. 

This demonstrates how important it is for families to hammer home the importance of budgeting from a young age. For example, a study by Standard Life last month found only 25 per cent of families involve all generations in conversations about financial planning. 

However, if this figure was closer to 100 per cent, more youngsters would have a better understanding of issues such as bills, inheritance and salaries. 

Chief executive of pfeg Tracey Bleakley thinks part of the problem is that technology has made money "a lot less tangible than it once was" – a situation that is not likely to change in the future. 

"Cashless payments are making it even harder for young people to learn how to manage their personal finances. As a society, we are going to have to work even harder to give young people the financial skills and knowledge they will need throughout their lives," she added.

While financial education is set to become part of the national curriculum, Ms Bleakley is also calling for money management skills to be taught in primary schools so youngsters can be as prepared as possible.

By James Francis