UK households don't know how to manage money

Study finds 

With news that UK households are suffering the biggest financial squeeze since mid-2014, the latest research from Equifax the credit information provider, reveals that a quarter of families (24 per cent) do not have a household budget. And 27% of families in London ‘wing it’ when it comes to managing finances.

A third of families in the South East have admitted that they do not set a household budget, followed by nearly a third of families in Yorkshire at 29 per cent. Families in Wales and the South West appear to be more control of their household finances, with just 16 per cent  and 17 per cent respectively not setting a household budget.

“It appears from our latest research that millions of families are not necessarily keeping track when it comes to managing their finances, with a quarter admitting to not having a household budget”, said Lisa Hardstaff, consumer credit information expert at Equifax.  “And whilst for some families this may work for them, for those who are just about managing it is helpful to have a household budget.

“Families that don’t manage their household spend and keep a track of things like utilities, food and petrol costs could run the risk of overspending as they may not remember all of their financial commitments, especially if there’s an unexpected bill.  With almost a third of respondents saying they are most concerned about a rise in utility bills impacting their disposable income, knowing all the planned outgoings makes the unexpected easier to deal with.

“Anyone struggling to keep track of their money can create a financial plan, for both their short and long-term financial commitments. We have created an interactive Budget Planner which is free to access from our website Anybody who has concerns about their finances can also gain some understanding of their financial situation by obtaining a copy of their credit report to view their current commitments.”