There’s an old saying that goes ”Money makes the world go around.” And as with all cliches, there’s an element of truth to it. There’s no doubt that money in some way has an impact on many aspects of our everyday lives. But some of us are better at managing it than others.
In fact, results from a recent Financial Capability Survey reveal that almost 40% of UK adults don’t feel confident in their ability to look after their finances. Equally worrying is that around nine million are in serious debt, and just one in three of these people are receiving help. At the same time, it’s estimated that 11.5 million have less than £100 tucked away in their savings.
Those statistics make for concerning reading, but why is sound money management so important? What are the possible impacts of financial struggles? And how can services like mobile money accounts help? Read on to find out more.
Why Is Financial Literacy So Important?
It could be argued that in the wake of the widespread uncertainty caused by the coronavirus pandemic, financial literacy is more important than ever. It’s vital that our children are educated on the basics in school from a young age. That will cause them to grow up with at least a fundamental understanding of how salaries, rent, bills, and other essentials could impact their quality of life.
They should also learn the pros and cons of various financial products, such as loans, and how these can help – or hinder – their money management. Without guidance at the school level, our young ones may copy older generations, who might not have been afforded the luxury of education on such matters and as a result may have developed bad habits.
What Are The Potential Consequences Of Dealing With Financial Worries?
Poor money management can have a significant impact on many areas of your life. Crippling debt can be hard to clear, and some financial products can only exacerbate the problem. Being in the red will make it harder to secure credit, while in extreme cases it can mean you struggle to pay for essentials such as your home, food, and transport.
Financial concerns can also take a toll on your mental and physical wellbeing, with anxiety, depression, and insomnia all commonly linked. If you do find yourself in this situation, the NHS offers help and guidance on how to cope with financial worries.
How Can Mobile Money Accounts Help?
A lot of financial issues arise due to an inability to accurately track our spending, but a mobile money account can provide the solution. It’s a bank account alternative that’s not linked to a traditional high-street bank but still allows you to spend, save and transfer cash all from an app on your phone.
You can open an account even if you don’t have a perfect credit history and it’s fast, convenient, and accessible – even when traveling abroad. It also offers the opportunity to accurately track your incomings and outgoings in real-time. That will help you develop a clearer picture when it comes to managing your finances.
