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W Quids in! £50IN0 The UK’s Number 1 Money Magazine | ISSUE 36 Autumn 2017 www.quidsinmagazine.com

R E NETV OO

G N YOU

QUIZ

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E L MP

e Teaching kids th basics on money

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SA YOUR MONEY

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GUIDE PUBLISHED Quids in! releases new guide for claimants

INSIDE! Advice on:

✔ Spending ✔ Saving ✔ Borrowing ✔ Earning

TAKE CONTROL

THE

Welcome We’ll be launching Quids In’s 2018 reader survey next issue and this reminds me that only one in ten of us felt totally confident with our finances when we asked the question two years ago. So I’m pleased a big chunk of this issue is about getting on top of them. We’re chuffed to bits our amazing new partners at the Open University have devised a quiz for our readers. When we take it, it reveals whether we’re on top... or our money worries are on top of us. Taking stock of money worries can be a can of worms, though, so what can we do once we’ve opened it? Well, first, send in your answers or do the quiz online and enter the prize draw for that whopping £500. Then you’ll also receive a free, (yes, free), Guide specially devised for you, based on your scores. For those a bit too young for the quiz, like my two-year-old nephew on the cover, we even have advice on getting started early. It’s crazy to think that Dillon’s ideas about managing money will be forming by the time he’s seven, so it was fascinating to put together some top tips for toddlers. It’s never too early, it turns out. Space is tight in these pages, so we’re producing longer versions of the features here for download. Just sign up to the Readers Club to read more: qimag.uk/QIClubReg

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Jeff Editor

HALTING HOLIDAY HUNGER Calls to continue free meals during school holidays 1 in 5 UK kids at risk of hunger. Calls for MPs to back #HolidayProvisionBill to feed poorer kids outside term time. qimag.uk/qi36hunger

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editor@quidsinmagazine.com

MP Frank Field is asking Parliament to give local councils a duty to feed poorer kids during school holidays. “With the holidays comes a barrage of costs which overwhelms families on low incomes,” Frank Field told Quids in!. “Children who go without meals in the holidays then fall even further behind their more fortunate classmates.” Over 80 MPs have so far backed the School Holidays (Meals and Activities) Bill to ensure families who rely on free school

In this issue… Toddler Tips: Money smart and under seven Page 4

meals do not go hungry outside term time. UNICEF says one in five children under 15 in the UK are at risk of going hungry. The Bill’s aim is to ensure children everywhere receive at least one decent meal and families’ budgets can stretch further. Frank Field said existing projects have proved “a huge difference” can be made to children’s physical and mental health, as well as their ability to learn, adding his Bill would create “a national commitment” so no child goes hungry during the holidays. National School Food Policy Advisor, Lindsay Graham, called on Quids in! readers to “write to, call, Facebook or tweet your MP and ask them to support the Bill as soon as you can.” Full story and further details: qimag.uk/ qi36hunger

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m Address 3 Monmouth Place, Bath BA1 2AT. Tel 08456 8049 06 m Editor Jeff Mitchell Email editor@quidsinmagazine.com m Comms Officer Dan Fineman Email dan@ socialpublishingproject.com m Advertising Opportunities Lisa Woodman Email lisa@ socialpublishingproject.com m Copy Sales Lisa Woodman , Rhiannon McNamara, Email lisa@ socialpublishingproject.com, rhiannon@socialpublishingproject.com m Design Joe Burt m Cartoon by Rachel Wotton www.harmfulraes.com © This magazine may not be reproduced in part or full without prior written permission of the publisher Quids in! makes every effort to ensure content is correct at the time of going to print. Readers should take specialist advice where necessary. Quids in! has no political allegiances, and opinions expressed are not necessarily those of the publisher or editor. Any relationship with advertisers or sponsors is always on the understanding that we retain our editorial independence.

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Quids in! magazine is designed to help people understand and manage their money better. It is published quarterly by the Social Publishing Project, a social enterprise.

Quids in! magazine is supported by Aon and Aviva. Aon arranges home contents insurance with Aviva for tenants of social and council housing. Ask your landlord if they have a scheme in place.

BUZZ

The latest news affecting you and your finances

NO HARM FROM LOAN CAPS Rejected borrowers unlikely to turn to loan sharks

Finance watchdog, the FCA, has released research claiming new caps on payday loan charges has not forced many borrowers into other forms of high cost debt. Rules introduced in January 2015 prevent charges exceeding the value of the loan, limit daily interest rates and cap default fees. Levels of high cost, short-term debt that borrowers could not manage has plummeted. Fears were raised that borrowers refused a payday loan would resort to other expensive forms of debt. Researchers found that one in five (20%) of those turned down asked family

Universal Credit is coming

JOIN THE CONVERSATION… Someone told me to go on moneysavingexpert.com to search for ‘demotivator’ and try it out. OMG. I just typed in what I spend and what I earn. It told me I spend £1,000 a year on takeaways and that it takes me four weeks to pay for that. Let’s just say I shall be cutting down. Cheers, Martin Lewis, I really am demotivated. J Rees, Pontypridd

£9,365

By 12 months, the average* UK baby costs almost £10k a year but would you spend £6,000 on childcare?

£47,067

The average costs toddlers have totted up by three years

£158,375

By age 12, they’ve cost the same as a flat in Newcastle

£192,187

The average cost by age 17 *Averages include high spending households as well as low. Test your own budge t to see how it looks at qimag.uk/qi36kids

SPOTTED OUR QIMAG.UK LINKS? Follow up Quids in! stories on the net. Simply type in the qimag.uk/link to take you straight to the website. Test it with some early Halloweenthemed tunes from our friends at club night Pop Horror: http://qimag.uk/ qipophorror2017

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A new edition of Quids In’s Universal Credit Guide is out and selling like hot cakes, with landlords and local councils buying up 25,000… and counting. Focusing on the ‘3 Bs’, (banking, budgeting and being online), 32 easy-read pages explain the process and potential pitfalls, taking top tips from claimants already on UC. Ask your landlord if it’s on offer locally for free or order online via the Quids in Store: qimag.uk/qistore

SHOCK TACTICS

NatWest has a cool tool to tot up the cost of raising your child.

E L P M A for help while almost the same number (18%) went without. One in ten (10%), however, found another company or took a doorstep loan, likely to carry high interest charges. It is difficult to identify criminal lenders such as loan sharks, so it is unclear how many used them but one third of respondents said they found “informal sources” of credit, (including friends or family). Of these, a few (3%) knew their lenders made money from lending to others and one in 25 (4%) said late payment would result in violence or threats. A few (2%) said debts worsened after being turned down but similar numbers either cut back or waited until payday.

Report on capping payday loans charges by @TheFCA finds evidence that few turn to damaging credit as a result

UC WATCH

NUMBER CRUNCHED KIDS

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POST The Editor, Quids In! 3 Monmouth Place, Bath BA1 2AT EMAIL editor@quidsinmagazine.com TWEET @quidsinmagazine.com

Have you got something you want to tell us, or a money-saving hint or tip to share? Each issue we’ll send £50 to our best letter writer, emailer or tweeter! Don’t forget to include your name and address.

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Y B BSTAEPS

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Research says children develop money habits by the time they’re seven, so it’s never too early to talk finance. Quids in! explores how

M E L P M A

Quids in! Readers Club For the latest ideas on cheap and free stuff to do with the kids, as well as news and tips on staying on top of your money, sign up to our monthly emails from the Quids In Readers Club.

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y son often pays for my coffee. He’s only two. “I already talk to him about money because I want to teach Dillon the things I wasn’t taught and prevent the mistakes I made!” Quids in! reader Clare is perhaps a not-so-regular mum. She is determined to make sure her son understands money as early as possible. “He will know what a credit card is, what an overdraft is, and that getting a free mobile phone is not the right reason to open a new bank account.” According to youth education group Young Enterprise, children have formed opinions about money by their seventh birthday. It is never too early to start helping kids to form good habits around cash… or even cards. Here are Quids In’s top tips on raising baby right on finance. The full article is available as a free download for Quids In Readers Club members – sign up for free at qimag.uk/QIClubReg or go to qimag. uk/qidownloads

KIDS & MONEY

Quids in! says

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While we want to protect the innocence of childhood, play is also about preparing for adulthood. If parents don’t lead on this, how would we feel if the first people to offer help is a payday loan company?

PICK A PIC: Goals are always more powerful when written down and said out loud. Help them cut out a picture of whatever they are saving for, with the price, and stick it where they’ll keep seeing it

MAKING FINANCE FUN: For the youngest children, introduce them to money and the idea of collecting things with a clear plastic piggy bank, so they can actively add coins and watch their savings grow

KEEP ‘EM KEEN: Goals are not reached over night, so try to talk to them every week about how they’re getting on with their goals. A trip to the store to spend those savings is the reward… Then start again

THEY SHOOT, THEY SCORE: As soon as they are old enough, teach them how to set goals and work to them. Reach for the Argos catalogue and help them find something they might be able to afford within six weeks

“The point of all thist is to teach kids whae to expect from th real world.”

The Money Advice Service told us about a pilot they led, along with Big Lottery and the Welsh Government to give parents across Wales the skills to introduce money to their kids from as young as three. “How you manage your money as an adult is shaped by what you experience in the family home. Talk, Learn, Do answered questions like: ‘How can I stop my kids having tantrums in the supermarket?’ and ‘Should I give pocket money?’ Many of the best ideas came from the parents themselves. Parents liked being able to talk money in a fun, nonjudgemental way.”

E L P PICTU M THE GET A RE

WHY, MUMMY?: Encourage questions but remember kids soak up ideas like sponges, so explain fully and try to be consistent HELPING HANDS: We could all do with being more open about money, especially when we need help. The little ones’ earning power is limited so think about a little regular pocket money that will still teach a lot. Could they top it up if they offer to do a bit around the house?

REAL WORLD LESSONS: The point of all this is to teach kids what to expect from the real world. Be disciplined about shortcuts and handouts – they will ask for top ups but ask yourself, what would happen for us? Do we want to teach them about how to borrow or earn more? Or wait or even go without?

TALK, LEARN, DO

The Money Advice Service says two in three adults struggle with financial commitments, so it turned to child behaviour expert Dr Elizabeth Kilbey to put together a few short videos to help parents ensure their kids know how to stay on top of their money. The clips talk through steps to guide children from toddlers through to teenage years. Dr Kilbey’s key lessons are: ‘When it’s gone, it’s gone’ and ‘Save, spend, then save again’, which she says will help us all as we go through life. They show children starting to get familiar with money before they can

even count. Then later, playing shop and learning that sometimes you cannot always have all you want. One parent helps her son buy a game by taking him and his savings into a bank before showing him how she then can pay for it online. “We want them to learn to look after it and keep it safe’” says Dr Kilbey. See more at: qimag.uk/qimaskids

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Odds & Ends

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Enter the prize crossword for a chance to win £50 cash

POST: Simply complete the crossword and pop it in the post to us. Don’t forget to include your name, email (if you have one) and address. Send your completed crossword to Quids in! 3 Monmouth Place, Bath BA1 2AT.

HOW TO ENTER

EMAIL: You can enter by taking a pic of your completed crossword and sending it to editor@quidsinmagazine.com

ONLINE: You can now find the online crossword in the Quids In Readers Club members area! If you’re already a member, go to qimag.uk/QIcrossword and log in with your password. If you are not yet a member, it’s free to join: just visit qimag.uk/QIClubReg to sign up! ACROSS 1 Keep valuables in it (4) 4 Number after three (4) 8 Chew and swallow (3) 9 Long-necked animal (9) 10 Pass out (5) 12 Handy for leaving rooms (5)

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Gap between rows of seats (5) Paved outdoor area (5) Make clear (7) Number before two (3) Lazy (4) Sister of your mother (4)

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DOWN 2 Hill-living insect (3) 3 Number after seven (5) 4 Sir Alan says “You’re ______” (5) 5 Frank and honest to start with (7) 6 Queen’s ceremonial bodyguard (9)

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✆ QUIDS IN! USEFUL NUMBERS LOAN SHARKS The National Illegal Money Lending Team tackles loan sharks. To report a loan shark anonymously you can call them 365 days a year on ✆ 0300 555 2222, text LOAN SHARK and your details to 60003 or email them at reportaloanshark@ stoploansharks.gov.uk. In Wales call ✆ 0300 123 3311or send an email to imlu@cardiff.gov.uk

CREDIT UNIONS Credit unions are not-for-profit organisations that provide bank accounts, loans and savings. They may help people the banks won’t. To find your local credit union call ✆ 0161 832 3694 or visit www. findyourcreditunion.co.uk . BENEFITS • For unemployment and work-related benefits talk to Jobcentre Plus. • People with disabilities or carers should contact the Disabilit y Benefits Centre

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(✆ 0345 605 6055) and for Child Benefit and tax credits call Inland Revenue (✆ 0845 300 3900). • Council Tax and Housing Benefit is dealt with by your local council. • Pensioners should call the Pensions Service (✆ 0800 99 12340). • Free benefits calculator www.entitledto.co.uk

DEBT ADVICE For free debt advice and help, contact any of the organisations below. • National Debtline ✆ 0808 808 4000 www.nationaldebtline.co.uk • StepChange Debt Charity ✆ 0800 138 1111 www.stepchange.org • Citizens Advice www.citizensadvice.org.uk. In Wales call ✆ 08444 77 20 20 England call ✆ 08444 111 444 • Christians Against Poverty (CAP) www.capuk.org. ✆ 01274 760720

Quids in! Readers Club Pleased to receive your free Quids in! every three months? Now you can stay in touch all the time with our new Readers Club. Join the growing crowd of money-saving, savvy-shopping, debt-beating, cash-boosting Club members and receive freebies and top tips throughout the year.

… P O T N O M I’ : F L E S R U O Y T S TE ? E M F O P O T N O Y E N O M OR IS MY Quids in! and the Open University have joined forces to help readers think about small changes to help shape a better financial future. Our 9-question money quiz will start to point you in the right direction

E L P M A at the end and see how you did. You can do it online at qimag.uk/ouquiz1 Send us your answers and you’ll receive a tailored version of the Guide, entirely free. PLUS, £500 is up for grabs for one lucky reader as every entry will go into our prize draw, (see www. quidsinmagazine.com for terms and conditions). Draw closes 17th November 2017

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ersonal finance experts at the Open University have designed a free, step-by-step Guide to help Quids in! readers work out what to do to get on top of our money and make the most of what we have. It’s not about lecturing people or pushing us towards huge lifestyle changes, the Guide just offers the tips and tools to make things happen. For each question tick one answer that best matches you. Add up the score

Which of the following best describes your views on money? A) Money is important because it shows how successful and powerful you are B) It is important to have savings, you never know when you may urgently need the money C) I often demonstrate my love to people by buying them things D) With enough money, you can do whatever you want

How do you feel about putting away savings? A) I’m focused on making ends meet dayto-day, saving money isn’t a priority for me at the moment B) I’d rather save money than spend it C) I’d like to have some savings but I struggle to put money away D) There’s no point saving anything as banks pay so little interest on it

WIN £50 0 IN OUR PR IZ DRAW! E

What’s your biggest financial worry? A) I’ve got lots of debt and I don’t know how I’m going to pay it off B) I often run out of money before the end of the month and go overdrawn, borrow on my credit card or miss payments C) I get by day-to-day but I’ve not managed to save anything D) It would be nice to have more money but I don’t have any real financial worries

something – a holiday, Christmas presents, a car – but I don’t save regularly D) I put some money into a savings account every month

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How do you feel about how you manage your money? A) I have some money worries but I manage day-by-day B) I feel in control of my finances C) Money is a constant source of stress D) I don’t think about my finances that much

TAKE PA YOUR C RT FOR HANCE T O

If you use a credit card, which statement best describes how you repay it? A) I always pay my credit card off in full every month / I don’t have a credit card B) I’m in arrears on my credit card and can’t afford to pay it off C) I pay whatever the bank tells me I have to pay on my credit card each month – the minimum repayment D) I usually clear my credit card each month but sometimes overspend and end up taking a month or two to pay it off

Do you save money? A) I have no savings and couldn’t afford to start saving anything B) I try to save and I’ve got some money stashed away C) I save up for things when I want to buy

Imagine your car is essential to you – you need it to get to work or do the weekly shop – but it breaks down and the garage says it’ll cost £650 to fix it. What would you do? A) I’d put it on my credit card or borrow the money from friends or family B) I might dip into my savings but I’d be able to afford it without too much hassle C) I’d struggle to pay it but if I cut back spending I could just about cope D) I might be able to get a payday loan but there’s no other way I could find £650

Your gas and electric company suddenly realises they’ve been overcharging you and refunds you £400. What would you do with the money? A) I’d save it B) I’d pay off some debt C) I’d use it to treat my family or friends D) I’d buy the outfit/computer/holiday I’ve been wanting for a while

Quids in! | 7

YOUR SCORE

How do you plan your spending? A) I don’t really plan my spending, I just go with the flow and hope there’s enough money left at the end of the month B) I set a budget and tend to stick to it pretty well C) I try to control my spending but I can never understand where the money goes D) I don’t actively plan my spending but I keep track of how much is in my bank account to make sure I have enough to pay my bills

25-31:

You’re really on top of your day-to-day finances and in a great position to cope with life’s surprises. Well done! Now you can think about your long-term future and making the most of your money. Do you have any burning goals like buying a house or a dream holiday? Are you prepared for retirement? Send us your completed quiz and we’ll send you our free Guide to help you decide what you want and to plan your next steps

You’re not in financial difficulty but a small financial shock or unexpected bill could push you into trouble. Take control. Look closely at your income and spending then decide what you want. Budgeting is not about giving up things that make you happy, it’s about making the most of your money. The Guide we’ll send you will make budgeting simple, and you’ll be surprised how much a few moments to plan can help you achieve. Just send in your quiz

18-24:

32 or more:

You’re getting by right now but one major financial shock could set you back. Could you and your family cope if you lost your job or fell ill? Saving even a small amount each month can make a big difference. It’s easier than you think. Maybe you want a holiday or a debt-free Christmas? Our free Guide can show you how to achieve your goals with a practical, step-by-step guide to budgeting and saving. Just send in your quiz and details

If you’re in debt that you don’t know how to pay off then you need professional advice to guide you through. Luckily, that’s available for free. StepChange Debt Charity and your local Citizens’ Advice both offer expert support to help you back to financial health. (Details of national charities that help are also on page 6.) The sooner you do this, the more successful it’s likely to be and the faster the weight will lift off your shoulders

I’M ON TOP!! – now focus on your future to achieve your goals

Struggling to make ends meet – budget and take control

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SCORES 1. Your views on money A=2; B=1; C=2; D=2

17 or less:

2. How you feel about money A=2; B=1; C=4; D=3

Managing day-to-day – start putting a little by each month

3. Putting away savings A=3; B=1; C=2; D=2 4. Biggest financial worry A=15; B=5; C=3; D=1 5. Using credit cards A=1; B=10; C=3; D=2 6. Saving money A=5; B=2; C=3; D=1

8. Dealing with a refund A=1; B=2; C=3; D=3

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9. Planning your spending A=4; B=1; C=3; D=2

Quids in! Magazine

Quids In! and the Open University are researching whether money guides work. When you send us your completed quiz (above) and details (below), we will send you our free Guide with money advice tips based on your quiz answers. You will also be entered into a prize draw to win £500. Once you have received the guide, as part of our research, we will send you a survey to see how you found it. Your details will only be used by Quids In! and the Open University and solely to assess whether the Guide works. No personal data will be shared with any third party. To enter, complete both sides of this quiz and either post it to Quids in! Quiz, 3 Monmouth Place, Bath, BA1 2AT or take a photo and email both pages to editor@quidsinmagazine.com, or take the quiz online at qimag.uk/ouquiz1 Name:

Address: Postcode:

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Male post, I’m not online

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email, I check it regularly

Tick here if you do not want Quids In Readers Club emails with details on making extra money or news and tips on managing your finances

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7. Fixing a car breakdown A=3; B=1; C=2; D=4

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