Four fifths of the population worries about money, according to a survey for Financial Planning Week. Over the past six months the family financial situation has improved for only 13% of households.
In the survey of 1,000 people across Britain, conducted by YouGov and Liontrust, nearly a third (30%) said they are likely to be reducing their spending in 2013 with only 4% saying they are likely to pay more into a pension or start contributing to one.
The figures are worse than in 2011 where the same survey revealed 35% of people never worried about money. The biting austerity measures and the contracted economy have impacted a growing number of households. This, in turn, is affecting parents’ ability to save for their children’s future.
Fareham-based IFA Tim Geoghegan, of G&C Financial, says, “By spending a little time and accessing some professional advice it’s possible to pay less for more appropriate life insurance or achieve a better return on your pension or savings.”
Mark Timbrell, CEO of PKTMNY, says discussing financial plans as a family is a good idea. “Without any budgeting, Christmas can cause a financial hangover. Talking about money as a family, particularly sitting with your children and setting a wish list for presents, is a really important way of keeping in control of the family budget while teaching the value of money. It’s a vital life lesson.” PKTMNY provides digital cash management for kids, including a pre-paid debit card for eight to 16-year-olds.
Financial planning company Carpenter Rees shares five top tips to help your children learn financial management skills.
- Educate your children about the value of money. It sounds obvious, but the old adage, ‘money doesn’t grow on trees’ is an important lesson for young people.
- For anyone who wants to instil en entrepreneurial spirit into young people there’s no better thinking than ‘money makes money’.
- Help them understand that money is exchanged for labour or services and that they can earn their own money if they want to work.
- Open a child savings account or Junior ISA and engage with your children about the fun of saving.
- Ensure you have completed an R85 form so your children will receive interest gross (although, if the child receives more than £100 interest per annum, the parents may have to pay the tax).
Financial Planning Week website.