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Millions of people 'spending frivolously'

Millions of Britons are spending money frivolously and not thinking about whether they can afford it, according to a new study.

Research by Unbiased.co.uk found that three million consumers base their purchases on desirability and not affordability, leading many to spend beyond their means.

Meanwhile, 7.5 million consumers were found to only be considering their financial situation in the short-term and not be thinking about their future status.

The lack of budgeting was particularly apparent among young people, with many 16 to 24-year-olds saying that they only save if they want to make a large purchase.

David Elms, chief executive of Unbiased.co.uk, said: "It is worrying to see the attitudes of young people towards the need to get saving.

"Hopefully we will continue to see improvements in saving practices so that by next year it will be possible to define British consumers by their saving as well as by their spending."

According to the Personal Finance Education Group, Britain's overall level of consumer debt is more than £1.25 trillion.

The organisation is campaigning for schools to deliver personal finance education to young people as part of the national curriculum.

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05/04/2007 14:28:41

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