New strategy to solve personal finance problems


The Money Advice Service, in conjunction with the UK Financial Capability Board, has today published a 10-year strategy which aims to improve people’s ability to manage money well day to day, prepare for and manage life events, and deal with financial difficulties.
Its focus will be on developing people’s financial skills and knowledge as well as their attitudes and motivation.
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Hide AdBased on extensive research among 5,000 people and consultation with key organisations and institutions, the strategy spells out in stark terms the problems the nation faces and an approach to resolve them.
Key research findings include:
• Only half of families have any life cover
• 21 million don’t have a modest £500 in savings to cover unexpected bills like replacing the fridge or mending the car
• 19 million don’t have an approach to budgeting that they feel works
• Around 8 million have problems with debt. Of those, just one in six is seeking help.
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Hide AdThe strategy will target people of all ages and aims for cross-sector coordination to maximise impact.
Board members include former diplomat Sir Sherard Cowper-Coles, chairman of the Financial Inclusion Commission.