PEOPLE are not “wired” to handle money well and should be given more help to overcome behaviour patterns such as over-buying, a report argues.

Simply arming people with more knowledge about financial matters is not enough to meaningfully improve their ability to manage their money, according to the report from think-tank the RSA. It worked in partnership with researchers from the London School of Economics (LSE) and the Fairbanking Foundation.

The report highlighted “behavioural hurdles” that help to determine how well people might bounce back from a shock to their finances or how well they plan for the long term.

It said that these are not character flaws but natural aspects of behaviour: “In other words, humans are not ‘wired’ to handle money well.”

One such hurdle was people buying items they do not need because they overlook how they might feel in a different situation.

Feeling under pressure to “keep up with the Joneses” through buying flashy new items would be another behavioural hurdle, the report Wired For Imprudence, said.

Efforts have been made in recent years to increase people’s understanding of money matters. Financial education was introduced onto England’s national curriculum for the first time in 2014, bringing it into line with the rest of the UK.

The report suggested that there should be a shift in emphasis in financial education, from gaining knowledge of people’s behaviour. It said this could help people to use the money skills they have learned.