What causes financial pressure?
Figures indicate that the average British family has:
- little or no money saved – one in three of us saved nothing in recent years!
- a large amount of fixed living expenses to pay every month; and
- an increasing amount of credit commitments.
This means most people are depending on future income to survive. There are many reasons for this and it may be helpful to look at some of them briefly.
Lack of financial education
Many of us were never taught how to manage our money. This makes working out a budget and getting to grips with interest and charges on a loan (APRs) difficult for many of us, yet these things affect our day-to-day lives.
Pressure from other people
In our society we are always under pressure to present the correct ‘image’ and to buy the ‘right’ item and this is especially true for young people. Advertising constant