Official Report: UK Struggling because of 'Live for Now' Culture

Wordsmith

LE
Book Reviewer
#1
A report by the government supported Money Advisory Service has found that over half the people in the UK are now struggling financially. It's has also found that two of the main reasons for this are a 'live for today' culture and a lack of understanding of personal finances.

I'm going to suggest that this is going to take decades to sort out and will require a major cultural change before it happens. Only when people realise the good things of life have to be worked for and not brought on a credit card will peoples finances begin to sort themselves out.

And I'm sure one of the main roots of the problem lies in our educational system. We're just not equipping people with the skills to look after their finances when they leave school - so they go through life pursued by debt.

26 million people struggling financially - Telegraph

Millions of Britons are struggling with money because the economic downturn has encouraged a "live for now" culture, according to a major report into the health of the nation's finances.

Around 26 million Britons are struggling with money because the economic downturn has encouraged a "live for now" culture, according to a major report into the health of the nation's finances.

More than half of UK adults said they were struggling with their finances, Government-backed body the Money Advice Service (MAS) found.

The report also revealed that a worrying number of Britons lack financial knowledge. Some 12pc of those questioned believed the Bank of England's base rate, which has been at a historic 0.5pc low for more than four years, was over 10pc.

More than one third of people did not understand the impact that inflation has on their savings and 16pc could not identify the correct balance on a bank statement.
The Money Advisory Service is free and can be found here:

https://www.moneyadviceservice.org.uk

While the full report is here;

https://www.moneyadviceservice.org.uk/en/static/the-financial-capability-of-the-uk

Wordsmith
 
#2
It doesn't matter if you save, the interest rate is below even the faked inflation figure, and some little turd in a bank would destroy your investments anyway (and the govt would then reward him from the public purse). Better to go to the pub.
 
#4
People also need an incentive to believe that tomorrow will be worth saving for. The older amongst us may very well have a lifetime of believing it to fall back on, but for the 20 and 30 somethings? There really isn't that much to be saving for unless you're absolutely desperate to bale yet another cretin in a 'too big to fail' boardroom out of a hole of his own devising.
 
#5
Well it just reflects the reality of an economy that's been on it's arse for an unprecedentedly long period. Babbling about thrift is just papering over the cracks. There's often no surplus to save and worse folk slip into ever deeper debt. Besides UK government policy for decades has been to encourage a high consumption lifestyle supported by high levels of indebtedness, the "ownership society", student loans etc. Aspirational but often feckless. Much of UK PLC behaves in the same way, this is a cultural phenomenon.

And it doesn't really help that there's been rather a lot of inter generational theft. Young folk facing high housing costs, falling wages, unreliable employment. The luckier ones enter working life with large student debts and now they have to shoulder providing for an elderly population that contains far too many folk entirely dependent on the state which finally means more taxes and cuts to services that might have helped them better themselves.

Nor should they be confident that savings are safe or that overvalued assets purchased from their more cosseted elders with debt will hold their value.
 
#6
A report by the government supported Money Advisory Service has found that over half the people in the UK are now struggling financially. It's has also found that two of the main reasons for this are a 'live for today' culture and a lack of understanding of personal finances.

I'm going to suggest that this is going to take decades to sort out and will require a major cultural change before it happens. Only when people realise the good things of life have to be worked for and not brought on a credit card will peoples finances begin to sort themselves out.

And I'm sure one of the main roots of the problem lies in our educational system. We're just not equipping people with the skills to look after their finances when they leave school - so they go through life pursued by debt.

26 million people struggling financially - Telegraph



The Money Advisory Service is free and can be found here:

https://www.moneyadviceservice.org.uk

While the full report is here;

https://www.moneyadviceservice.org.uk/en/static/the-financial-capability-of-the-uk

Wordsmith
Can not be true House Prices are raising say the Nationwide - the economy is on the mend it looks very rosy for the future

Archie
 
#8
People also need an incentive to believe that tomorrow will be worth saving for. The older amongst us may very well have a lifetime of believing it to fall back on.
|Don`t think so that has been trashed in the past 5 years for most over 50`s, I certainly dont intend to put much money into a bank or building society account - alternative investments for me

Archie
 
#9
|Don`t think so that has been trashed in the past 5 years for most over 50`s, I certainly dont intend to put much money into a bank or building society account - alternative investments for me

Archie
You're investing though, not spending. You still have some hope that you can make the money you have now benefit you in future. A lot of others don't, thinking if they don't spend it now it'll either be worth less in future or be nicked by some smarmy git in a suit and the ear of the current PM/Chancellor.
 
#10
I wonder how many suits at the MAS it took to conclude "Everyone's skint because essential stuff in the UK costs so much!" What was the total cost of the report and what use will it be put too?
 
#11
A report by the government supported Money Advisory Service has found that over half the people in the UK are now struggling financially. It's has also found that two of the main reasons for this are a 'live for today' culture and a lack of understanding of personal finances.

I'm going to suggest that this is going to take decades to sort out and will require a major cultural change before it happens. Only when people realise the good things of life have to be worked for and not brought on a credit card will peoples finances begin to sort themselves out.

And I'm sure one of the main roots of the problem lies in our educational system. We're just not equipping people with the skills to look after their finances when they leave school - so they go through life pursued by debt.

26 million people struggling financially - Telegraph



The Money Advisory Service is free and can be found here:

https://www.moneyadviceservice.org.uk

While the full report is here;

https://www.moneyadviceservice.org.uk/en/static/the-financial-capability-of-the-uk

Wordsmith
Another good reason is that prices are rising but wages arn't keeping pace, savings are being eroded by inflation.

People are worse off.

There becomes a time when no matter how well you manage your money you can't manage.
 
T

Taffd

Guest
#13
A report by the government supported Money Advisory Service has found that over half the people in the UK are now struggling financially. It's has also found that two of the main reasons for this are a 'live for today' culture and a lack of understanding of personal finances.

I'm going to suggest that this is going to take decades to sort out and will require a major cultural change before it happens. Only when people realise the good things of life have to be worked for and not brought on a credit card will peoples finances begin to sort themselves out.

And I'm sure one of the main roots of the problem lies in our educational system. We're just not equipping people with the skills to look after their finances when they leave school - so they go through life pursued by debt.

26 million people struggling financially - Telegraph



The Money Advisory Service is free and can be found here:

https://www.moneyadviceservice.org.uk

While the full report is here;

https://www.moneyadviceservice.org.uk/en/static/the-financial-capability-of-the-uk

Wordsmith

Are you suggesting that only businesses should be able to borrow?
 

Wordsmith

LE
Book Reviewer
#15
Are you suggesting that only businesses should be able to borrow?
No - only that people live within their means.

I am aware that there is a significant part of the population on low incomes, struggling to make ends meet. I have sympathy for those people because many do manage their money carefully, yet still have problems paying bills. On the other hand, there are people on better incomes that are still feckless with money. From the report:

Money Skills-1.png

Its the 18% in this survey who would still go out even if they can't afford it that I have zero sympathy for.

Wordsmith
 
T

Taffd

Guest
#16
No - only that people live within their means.

I am aware that there is a significant part of the population on low incomes, struggling to make ends meet. I have sympathy for those people because many do manage their money carefully, yet still have problems paying bills. On the other hand, there are people on better incomes that are still feckless with money. From the report:

View attachment 134235

Its the 18% in this survey who would still go out even if they can't afford it that I have zero sympathy for.

Wordsmith
And who will businesses sell to, using their borrowed money, if all the despised live within their means?
 
#17
Your insight is staggering, truly.

Brutal Mary's are known in these parts as "Jarrod's".
You liken an extra-strong Bloody Mary to a rapacious sodomist? Are you mental or just an idiot?

By the way, I thing the govt. has provided you with too many apostrophes for your own good, given the reckless manner in which you are chucking them about the place.
 
B

Bertie Basset

Guest
#18
You liken an extra-strong Bloody Mary to a rapacious sodomist? Are you mental or just an idiot?

By the way, I thing the govt. has provided you with too many apostrophes for your own good, given the reckless manner in which you are chucking them about the place.
You're being far too generous to the cnut!
 
#19
The stealth tax on pension dividends has a lot to answer for.
Brown's tax raid on pensions | This is Money

When Blair and Brown got in the chair, this ushered in a spend spend spend economy. House prices went rocketing again. People had money in their pockets to go out and buy nice big ugly cars. Interest rates dropped and banks went on a lending spree.
Fast forward 10 years and surprise surprise the pension funds are bankrupt, nobody has saved anything so to add insult to injury the Banking system which is our greatest export goes into freefall. This happened in the USA as well which compounded the inflation threat but all I can say about the latter part of 2008 is that it was a helluva time to be short the GBPUSD currency pair.
Look at it historically. Our last period of true austerity was in the 1950s. As the baby boomer generation reached teenage years there was almost full employment, the young people could go out and buy motorbikes, cars, clothes you name it. In the 70s there was a dip with explosive inflation, monster tax rises but still good employment and how many households did not have a car or a colour TV. Not austerity by any means compared to the days of rationing. Move into the 80s, Thatcher, YUPPIES, how many of us on here became house owners, insurance and investment policies that actually paid out (supposedly). OK we had a Stock market crash in 1987 but it didn't affect too many people apart from those who didn't have any protection but properties stabilised and people were pretty content and so the cycle continued to the mess we have today.
The common thread throughout all this is greed and the government knows it. House prices set to fall never really crashed and in fact are on the rise again. In some parts of the USA there are schemes being set up such as lease-back of properties as included in the retirement and healthcare plans. There are some dodgy equity release schemes already in this country because unlike the US we have the state to fall back on supposedly. How long this is going to last for with even free healthcare is anyones guess.
Overall I think there is going to be some form of "Asset incorporation" into even a government pension plan, and that includes the state pension. Those who are "hoping" to use their houses as a retirement ATM are in for a nasty surprise because the government will step in and tax them on the assets they hold on the understanding that they are going to partially sell off "shares" in their bricks and mortar. I just wonder if there is an investment business opportunity to start on say a 10 year plan prior to retirement before the government gets their grubbies on it because rest assured the generations growing up now will give even less of a Fcku about care of the elderly than we did.
 

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