- The 'Moral Planners' are the strictest money managers of all, seeing it as
their moral duty to pay bills promptly. They manage money methodically and tend to use cheques
or cash, giving them greater control. The great majority of Moral Planners are
pensioners, usually women, with fixed incomes and low outgoings. They value their
independence, fear debt and express a strong desire to keep their affairs in order
as they approach the end of their lives. They would rather go without than fall behind
with their bills and their approach to money can be summed up with the thought that if
you can t afford it, don t have it. Moral Planners would no more delay paying a
bill than they would try to leave a shop without paying.
- 'Pragmatic Planners' also have a rigorous and systematic approach to money
management, although this is for convenience rather than moral duty. Often they are women,
between their late 20s and early 50s, living busy working lives . Both they and their
partners are in full-time work they are unlikely to have dependent children. Their incomes
are high enough for money not to be a problem and they set up direct debits and standing
orders or make annual payments to save money. They don t have the time to take a close
interest in bills and pay promptly to secure peace of mind.
- By contrast, 'Flexible Planners' tend to have a more relaxed approach to
money and to be more reactive than planned. They are both men and women of a similar
age to the Pragmatic Planners but earn less and spend more. They use a range
of ways to pay bills which give them flexibility and they juggle payments when the
need arises. Flexible Planners often try to save but rarely manage to put
aside as much as they need or end up spending the money on something else instead.
They are less experienced as money managers and their expenses can be difficult
to predict. Their approach can be summed up with the idea: You never know what's
round the corner. Some Flexible Planners delay payments on principle to stop
creditors accruing interest or to protest against poor service or rising prices.
- The 'Muddlers' do not manage their money at all - neither planning ahead or
keeping a record of spending. They have no idea what their expenses are or when their
bills are due and often lose bills, forget about them or pay them late. The Muddlers
divide into two groups. The first includes those forced into this approach by a change
in circumstances (such as the breakdown of a relationship or the birth of a child) who
try to put off the evil day when bills are due. The second include those who have never
been able to manage their money and who say it just sort of happens as well as those
for whom bill paying is not a high priority.
- The final group operate a 'Pay As You Go' system, paying for things frequently
and in small amounts. They tend to shop daily and meet most of their bills through direct
deductions from benefit, pre-payment meters or savings stamps. Usually these methods are
imposed by creditors. Typically members of this group are unemployed or on low incomes
and face a constant struggle to make ends meet.
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