Saturday 20 January 2018

Most of us fear we have no clue about finances and risk disaster

Just one-infour people feels they are financially literate. Stock Photo
Just one-infour people feels they are financially literate. Stock Photo
Charlie Weston

Charlie Weston

Most people fear they are dunces when it comes to financial matters.

Large numbers of people are also coasting close to financial disaster, so tight are their household finances.

Meanwhile, just one-in-four people feels they are financially literate, a new survey shows.

Many of the rest are not confident about their ability to make good financial decisions.

Half of people surveyed said their income had not covered their living costs in the past year, according to the survey commissioned by KBC Bank.

Young families were most likely to have struggled to pay bills, signalling financial stress among this age group.

The research also found that the strategies used by people to cope with a household budget squeeze include cutting back on spending, paying bills late and borrowing from friends and family.

The survey found that just 24pc of people believe they are financially savvy.

Another 60pc say they have average levels of financial know-how.

Just a quarter feel they are the tops when it comes to financial literacy. Most of these people were earning more than €60,000, according to the KBC-commissioned research.

People with low levels of financial knowledge are more likely to feel constrained.

Many have to carefully consider whether they can afford to buy something, and a number of people feel their financial situation limits their ability to do things they feel are important.

Irish Independent

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