Despite tough economic climate households are failing to budget

According to the Money Advice Service, a third of households will be unsuccessful in maintaining a budget for 2013 for the cost of rent, food, and travel.

The government service has predicted that over 16 million people will not be planning their budget this year.

32% of people who did not keep a budget said they could afford to overspend, 17% said they doubt they’d stick to a budget, and 13% said they preferred to be impulsive with their spending.

Out of those who did keep a budget said that it gave them peace of mind, helping them cope with those unexpected costs that may occur.

Nearly 70% of households in Scotland and Northern Ireland kept to a budget, however the North East was the worst area with less than half of people budgeting.

Less men than women said they stuck to a budget, with only 36% of men compared to 51% of women. However, men said they found budgets easier to stick to.