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Press comment: UK's household finances highlight need for financial education in schools

26 July 2018

If you’re covering today’s ONS research on household finances in the UK, please see the following comment from Jane Goodland, responsible business director at Quilter. 

Findings from the ONS report include:

  • UK households have seen their outgoings surpass their income for the first time in nearly 30 years
  • On average, each UK household spent or invested around £900 more than they earned in 2017
  • To fund this shortfall, households either have to borrow or dip into savings
  • Households are borrowing more and saving less partly because of low interest rates
  • Wages have not kept up with the rising cost of living

 Jane comments:

“This ONS research is yet another stark reminder of just how vulnerable the average UK household has become in terms of their financial wellbeing. In June the FCA’s report on the financial lives of UK adults revealed that 4.1 million adults are in ‘difficulty’ because they missed bill payments or credit commitments with 3.1 million adults facing high cost loans. With wages stagnating, interest rates still at rock bottom, inflation eroding people’s money, and housing costs at stratospheric levels, it is no wonder that it’s become increasingly difficult for families to make ends meet.

“Worryingly, we are seeing households saving less and making up for their financial shortfalls through increased borrowing. This is particularly problematic for the most financially vulnerable in society because, while short-term loans are easy to acquire, they’re expensive to pay back and often thrust people into a vicious cycle of borrowing to stay afloat.

“Study after study has revealed terrifying statistics of the nation’s lack of financial capability. It’s time for action and we now have a solution that is proven to work – financial education from a young age.

Independent research group, Substance, found that primary school interventions are effective, with a majority of pupils changing their behaviour after being exposed to financial education.

“Making this a compulsory part of the primary curriculum will mean that no matter a child’s background or postcode, they will have the opportunity to acquire the skills and behaviours that are vital to manage money and build a secure financial future. Helping the next generation to develop the vital skills should be a priority for government.”

 

For more information contact

Geordie Clarke
023 8091 6160
07741 725592
geordie.clarke@quilter.com

 

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.