49% of all households say they have become worse off in the last year, according to research from Halifax.
The research found that 46% of households admit to having run out money before the end of the month over the last year, and 9% said they ran out of money every month. Despite this, 74% of households feel they are coping well financially.
The Halifax said that accepted thinking is that money can be tight for those in their 20s, as looking for a job and moving out of home – sometimes with debts to pay – is expensive compared to income. As such 50% of this group says they ran out money before the end of the month at least once in the last year, and 11% said they ran out of money every month.
However, this figure actually increases among people in their 30s and 40s, with 58% and 57% respectively saying they ran out of money before the end of the month at least once in the last year. 10% of those in their 30s and 11% of those in their 40s say they ran out of money every month.
Anthony Warrington, Halifax’s director of personal current accounts, said: “It is perhaps a symptom of the current situation that more people in their 30s and 40s are finding they run out of money before the end of the month. There is no easy solution but keeping a close eye on your finances can help with budgeting, and by monitoring your expected outgoings you can see how much you have left over the month.
“Budgeting is not an exact science and that is why it’s important people choose financial products that are flexible enough to meet their needs now, next month, and in the long-term.”
A similar number to those who say they have run out of money before the end of the month say they currently feel worse off than year ago (49%). And just 13% of households say they are better off financially compared to the same time last year.
Those most likely to be feeling the pinch are in their 40s and 50s, where 54% and 60% respectively say they are now worse off. In contrast just 40% of those in their 20s, and 41% of those in their 30s say they are worse off financially.