Fifth of Scots have no savings

The findings of a new survey have revealed that more than 1.3 million Scots have little or no savings.

The Financial Wellness Index, created by the University of Bristol’s Personal Finance Research Centre has show people in Scotland are in worse financial health than almost all other parts of the UK.

The index states that more than 700,000 Scots missed a bill payment after a final reminder in the last year due to lack of money.

That represents 16.3 per cent, which far outstrips the just 4.4 per cent registered in the north-east of England and 3.3 per cent in Wales.

Academics at Bristol assessed key elements of a person’s financial life, combined with measures of the UK’s macro-economic state, to produce an overall Financial Wellness score out of 100.

The average person in Scotland scored 66 out of 100 in the Index, which was lower than almost all other UK regions, with the exception of London and the north-east.

The Survey by Momentum-UK also found a clear link between physical health and Financial Wellness.

According to the research, those in poor health are more likely to miss bill payments and have next to nothing in savings.

Samantha Seaton, managing director of Momentum UK, said: “The link between financial and physical health is strong in this year’s index, which is not wholly surprising when you start to analyse the similarities in behaviour needed to achieve both. Whether you are improving your fitness or trying to improve your financial picture, success will be found by taking small steps to achieving your longer-term goals.”

Professor Sharon Collard, director, Personal Finance Research Centre, University of Bristol, added: “Navigating the financial maze that we live in can be an extremely daunting experience, especially as most people receive little to no financial education in their childhood, teenage years and early twenties.

“The economic instability of the last decade has made the job of managing one’s finances all the more difficult, which is why now more than ever, it’s important that we have a thorough understanding of the financial health of UK households.”