Rather than planning for the future by repaying any loans or debt that they have, IFA Promotions found that a quarter of Britons would rather spend any increase in income on luxuries.
“Despite well-documented and countless warnings that as a nation, we are not saving enough, it seems that people are yet to adopt a sensible savings mantra,” said David Elms, chief executive of IFA Promotions.
“People need to place clearing debt and saving much closer to the top of their list of financial priorities.”
His comments come as a More magazine survey found that 80 per cent of young women spend more than they earn and turn to parents for help.
However, Mr Elms said that even without a pay rise, people could still take the opportunity to clear debt, but poor budgeting is preventing them from doing so.