A nation in financial denial?

Nearly a quarter (24%) of Brits are in financial denial, admitting that when it comes to managing their personal finances, they would rather ignore them, don’t have enough time, find it too boring, or don’t know how to go about it, according to new research by bettermoneyskills.com.

bettermoneyskills.com is a new financial education website, which aims to help put people back in control of their finances. From budget calculators and jargon busters to simple educational modules, the website can help people improve their money skills with simple, practical and easily digestible financial information.

The research also reveals that despite 89% of consumers claiming to have a budget, perhaps they aren’t budgeting carefully enough, as 70% of consumers admit they are unable to say what their exact outgoings are each month.

Brits reluctance to manage their personal finances could be attributed to the fact that a third of consumers (32%) are still spending more than they earn each month and just under a quarter (24%) are spending all of their earnings each month.

In particular 18-34 year olds are the worst when it comes to managing their personal finances properly, with a worrying one in seven (14%) admitting to throwing away their bank statements without even checking them. Equally concerning is that half (50%) of the age group doesn’t know what an APR is and a quarter (25%) didn’t understand the meaning of a single financial term when asked.

Peter York, social commentator said: "This picture shows that we aren't prepared or informed enough, particularly the young compared to their parents' generation. Years of relatively easy money - and less lecturing than their parents received - have made a Hollyoaks generation that's more disinclined to budget than their parents, and more in denial about everything financial than other age groups. There's a lot of learning and catching up to do which is where sites such as bettermoneyskills.com can prove useful."

Fiona Wilkinson, Head of Corporate Communications at Visa UK said: “Our research indicates that many consumers are in denial about their financial situation because they don’t have the basic financial skills they need, and don’t know how to go about getting them. bettermoneyskills.com quite simply aims to help put people in control of their finances, by educating and guiding them towards managing their money more responsibly.”