Financial Matters

With David Frederick FCCA | Marcus Bishop Associates | marcus-bishop.com

UK Strategy for Financial Wellbeing

Are you aware of the UK Strategy for Financial Wellbeing? The UK Strategy for Financial Wellbeing is the ten-year framework which will help achieve the vision of everyone making the most of their money and pensions. The five goals that it seeks to achieve by 2030 are:

• 2 million more children and young people getting a meaningful financial education

• 2 million more working age ‘struggling’ and ‘squeezed’ people saving regularly

• 2 million fewer people often using credit card for food and bills

• 2 million more people accessing debt advice

• 5 million more people understanding enough to plan for and in later life.

It was against this backdrop and the current financial environment that some local residents and visitors to our locality were canvassed for their memorable financial advice lessons.

Local business advisor, Lawrence holds onto the financial lesson from his mother who ran a retail/wholesale business for 25 years. “I was told to keep a tight grip on my finances and never spend beyond my means.” An oldy but a goody as such a gem has never gone out of fashion irrespective of the loud noises around about spending.

Local HR Consultant, Edua shared a similar parental lesson from her parents and her youth. “Saving for a rainy day has become instilled in me.” Perhaps with such deep entrenched lessons our mini focus group are already championing the themes and goals of the UK Strategy for Financial Wellbeing.

It is difficult to comprehend with such traditional financial lessons how we have arrived at where we are today. Jackie, a local accountant had a great ‘aha’ moment around 2007 when working in the city, “the company I worked for was terrible at managing their money, so I put a budget in place and realised I needed to follow the same formula.” Since that moment a budget has become a mainstay of Jackie’s financial education and management tool. Jackie sings the virtues of a budget, “I now control my money and tell it where to go. A budget is not restrictive but puts you in control.” This so fits in with the fifth goal of our UK Strategy for Financial Wellbeing.

Orin a retired business adviser, recalls the financial education of his teens from his father, “if you have one pound, save fifty pence.”

This even betters Mr Micawber’s advice in David Copperfield. Orin said, “his father’s lesson has provided the building blocks to his understanding of financial literacy. The more you have the more choices you are able to make; for savings unlocks the ability to make choices whether to spend or to save more.”

Life strategist and Coach, Beverley shared her most memorable financial advice from her accountant, “don’t allow anyone to pay you in cash directly. Always invoice them and get them to pay the money into your bank account.”

With such rich lessons from within our local community perhaps we are well on our way to achieving the UK Strategy for Financial Wellbeing by 2030. Our local contributors shared the following financial tips:

• have fun making money and spending it (but within your means);

• budget, as it puts you in control;

• whether you are employed or in business monitor your cash flow;

• learn how the stock market works because all the money you have is governed by it. Perhaps the challenge for our financial wellbeing was best echoed by local business adviser, Lawrence, “our beliefs around money rather than money itself can be problematic.

Quite a few of us hold subconscious beliefs about money that are self-limiting, ‘money is hard to come by’ ‘there’s not enough to go around’ ‘we never have enough’. Once we chuck out these old beliefs our relationship with money changes, becomes more fruitful and enjoyable.” Time to reflect as we fast approach 2030.