The paper “ Importance of Saving and Financial Planning” is a cogent example of a statistics project on finance & accounting. To begin with, young families comprise of fresh graduates who have little or no work experience. The result is low payments which only cater to basic expenses hence little or no savings. Secondly, many young families are subject to a monthly payment of loans such as student loans, car loans, and mortgages alongside other expenses such as insurance and pension schemes (Houle 2013). Such families are usually overwhelmed by the various household expenses such as food, water, electricity, clothes, and entertainment among others (Darko, Egget & Richards 2013).
In the UK for instance, according to a report, 3685 TISA Fact Sheet (2013), there is a notable savings gap for both short term and long term in most households. This is especially in the face of increasing costs of public service and increased life expectancy. In another report, Tackling The Savings Gap (2015), it is revealed that most Britons do not expect comfortable livelihoods upon retirement due to a shortfall between the expectations and reality.
In the case of Baz’ s family, mortgage, food, and car loan and car expenses such as petrol, servicing, and insurance are among the outstanding expenses. Surprisingly, this family burdens itself with two cars with Yasmin not contributing much to payment of the bills. Lastly, such families are faced with inexperience with respect to personal finance management and planning. Often, mistakes are made such as having expensive cars and spending too much on entertainment and other unnecessary expenditure. These are just a few of the reasons why young families are unable to save significantly. Nevertheless, it is important to start financial planning at a young age.
According to The Scottish Widows Savings Report 2014, taking the very first step of saving is significant in managing one’ s future and money. For instance, an individual at the age of twenty is usually experiencing the genesis of large financial responsibilities. It is at this age where the financial foundations are laid.
Assets, savings and wealth, and poverty: A review of the evidence. Joseph Rowntree Foundation. 2014
http://www.bristol.ac.uk/media-library/sites/geography/pfrc/pfrc1405-assets-savings-wealth-poverty.pdfs 3685 TISA Fact Sheet, 2013. http://www.tisa.uk.com/downloads/3685%20TISA%20Factsheet%20(FINAL%20SCREEN).pdf
Credit Crunched. CFA 2013 http://www.cfa-uk.co.uk/Credit%20Crunch_full%20report.pdf
Darko, J., Eggett, D.L., and Richards, R., 2013. Shopping behaviors of low-income families during a 1-month period of time. Journal of nutrition education and behavior, 45(1), pp.20-29.
Dorfman, M.S., and Cather, D., 2012. Introduction to risk management and insurance. Pearson Higher Ed.
Finke, M.S., and Huston, S.J., 2013. Time preference and the importance of saving for retirement. Journal of Economic Behavior & Organization, 89, pp.23-34.
Hastings, J.S., Madrian, B.C., and Skimmyhorn, W.L., 2012. Financial literacy, financial education, and economic outcomes (No. w18412). National Bureau of Economic Research.
Houle, J.N., 2013. Disparities in Debt Parents’ Socioeconomic Resources and Young Adult Student Loan Debt. Sociology of Education, p.0038040713512213.
Landerretche, O.M., and Martinez, C., 2013. Voluntary savings, financial behavior, and pension finance literacy: evidence from Chile. Journal of Pension Economics and Finance, 12(03), pp.251-297.
Tackling the Savings Gap. True Potential 2015 http://www.tpllp.com/tackling-the-savings-gap/
The Scottish Widows Savings Report 2014 http://www.scottishwidows.co.uk/about_us/media_centre/reports_sandi.html