Thinking about money
For many people, thinking about money – and the associated money worries – can have a huge impact on their emotional and physical wellbeing. In fact, an estimated 11 million people have less than £100 in savings according to the Money and Pensions Service – a particularly worrying statistic as people’s salaries may become more stretched in the wake of coronavirus.
Quilter’s research reveals the impact this has on long-term financial security. Amongst those feeling underprepared, 46% said not having enough savings made them feel that way, and 41% said having no savings was a key factor. These are by far the most often cited drivers of under-preparedness, followed by debt worries. Almost a quarter of people (23%) said loans, credit cards and other debts meant they were financially vulnerable.
There's help out there
Talking about these concerns can help. It’s hard to talk about money with a partner or friend, but there is help out there. In their article ‘How to have a conversation about money’, the Money Advice Service gives some great tips on how to prepare for and start a conversation, including how to deal with any negative reactions and how to end positively, with a clear action plan.
Starting to take small, practical steps may also help to ease gnawing money worries straight away. As Money Saving Expert (MSE) points out, “Easy lifestyle changes make huge differences… Cutting out your £2.50 weekday coffee could reduce your annual expenditure by more than £600”. Their Budget Planner contains some fantastic resources to help you budget better, making sure you’ve got those one-off expenses like birthdays covered.
“Easy lifestyle changes make huge differences… Cutting out your £2.50 weekday coffee could reduce your annual expenditure by more than £600”.
For all things financial during coronavirus, MSE’s ‘Life-in-Lockdown Help’ covers a raft of topics where money may be impacted at this time, from what happens with free school meals, to obtaining refunds on cancelled events. It’s worth running your eye through their suggestions on ways to save money in lockdown, including how to keep the family entertained for free.
Educating the younger generation
Finally, if you have children, tackling the topic of money early and educating the younger generation can be key to avoiding money worries later in life. Sponsored by Quilter, MyBnk is a charity that arms young people with vital money skills through innovative, high-energy financial education programmes.
Family Money Twist
For 7-11 year olds, check out MyBnk's latest home school financial education programme, ‘Family Money Twist’, a free online resource of videos, games and quizzes that explain the basics of money whilst setting positive money habits.
Speak up about your finances
Whatever your concerns, it’s important to speak up about your finances during Covid-19. “Staying silent while trying to muddle through our new reality is not the answer” says Jane Goodland, Quilter’s Corporate Affairs Director. “There are many Government backed services such as the Money Advice Service and The Pensions Advisory Service, which are free to use.”