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20/04/2009 16:47:32

Workers 'fail to make wages last the month'

A significant number of people could be putting their capacity for money management at risk.

Research carried out by the Co-operative Bank reveals that within the first 11 days of receiving their monthly pay, the typical person will have already spent about half of their wages - just under £800.

It was also revealed that after paying for the essentials, the average person will have just three per cent of their wages left to live on for the remainder of the month.

John Barker, head of current accounts for the Co-operative Bank, claims that although many people are looking to go out spending immediately after receiving their wages, as the economic downturn rumbles on, "it clearly leads to a much more difficult time later when many cannot get their wages to stretch until they are next paid".

Consequently, he calls for people to draw up a household budget to help track their spending and to take other steps to reduce their expenditure - such as shopping around for low-cost utility providers and checking bank account statements.

Earlier this month, the Norwich and Peterborough Building Society claimed that although people claim to be on top of their money management, they are often guilty of delaying keeping up with demands for payment until the last minute.