Your IndustryMar 19 2019

Majority of savers can't tell account balance

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Majority of savers can't tell account balance

More than half of savers do know how much money they have in their bank account, according to new research.

A survey conducted by personal insolvency practice Creditfix, which polled 1,000 UK adults, found 57 per cent could not tell their bank balance.

The survey also found only 34 per cent felt ‘in control’ of their finances.

According to the research, only one in five (20 per cent) of the respondents kept track of their finances, while 14 per cent admitted they would only check their bank account twice a month.

When questioned on the reasons why they don’t keep a closer eye on their finances, almost one in three (31 per cent) of savers said they didn’t have time to log their outgoings each month, while 15 per cent simply stated they preferred not to look at their bank account so often.

Taylor Flynn, marketing manager at Creditfix, said it was worrying to see how few British adults felt in control of their finances.

He said: "There are simple ways to manage finances and thanks to apps and technology advances, there are more things available than ever before that can be used to make this easier.

"Setting a realistic weekly budget will allow Brits to monitor how much they can spend to avoid going into any unwanted debt. By scheduling monthly bills, this will help to control any outgoings as it can be monitored effectively.

"Creating a monthly log to track spending on items such as bills, food shops and social activities is also helpful and doesn’t need to take endless amounts of time. This will make life easier in the long run and can prevent debt and financial difficulty along the way."

Ricky Chan, director and chartered financial planner at London-based IFS Wealth & Pensions, said it was a "little surprising" that most people did not know their bank balances, given how easy it is to use banking apps.

He said: "But on the other hand, I think some may not check because there isn’t much money to check on, as many may live from pay cheque to pay cheque – so they bury their heads in the sand and hope there’s enough money at the end of the month. 

"But some may not check because they perhaps only use their current accounts as working capital, so have just enough money each month to cover planned regular outgoings, like direct debits."

Mr Chan noted there were an abundance of resources, tools and rules of thumb to help people manage their finance better. 

He said: "Not least, some banking apps categorise their spending so it’s easier to view or there are simple apps to record outgoings.

"Even simple principles like 'pay yourself first' at every payday helps people save regularly in a disciplined way and knowing what they have left to spend that month – even starting at 1 per cent is good and slowly working up to say 30 per cent of income, and more for higher earners.

"I think also the growth in credit card spending has made it easier for people to get into debt and lose track of what they can afford to spend."

maria.espadinha@ft.com