The events of the past year have seen everyone across the UK face new and unexpected challenges – it has been far from ordinary. However, as we look to the year ahead, we can see tentative signs of progress being made and opportunities for us to build on the lessons we have learnt over the last 12 months.
In fact, our recent survey revealed that just under half of UK adults (45 per cent) stated that they are currently feeling confident about their financial future in 2021. Planning and preparation for unexpected events is more crucial than ever, as is having a better understanding of money matters.
We believe the transfer of financial knowledge within families and communities has become all the more important. Our research supports this, revealing that over three quarters (78 per cent) of under 35s said the advice and anecdotes shared by older people in their lives have helped shape their own savings habits, with a further 75 per cent stating that they are open to taking on board savings advice from their elders.
This transfer of financial knowledge will be crucial to rebuilding UK savers’ post-pandemic financial confidence and equipping them better for years to come. However, while the demand to learn from younger savers is there, almost half (47 per cent) of over 45s admitted that they haven’t shared savings tips with younger members of their families or communities as they don’t believe it’s their place to do so.
For many of us, talking about money can still feel awkward, even when it’s with close family and friends. But as our research revealed, sharing stories, advice and experience is extremely valuable and can make these discussions easier. More open conversations need to take place between generations, to build better financial knowledge that everyone can benefit from later down the line. In this newsletter we hope to tackle some of these issues, gathering information from two experts in this field to help provide guidance for everyone.
At Ford Money, we’re here to help provide the information and products to support these conversations and help you make the most of your savings. With that in mind, here are some of the key points to consider (and to talk about) when it comes to saving in 2021:
- Look around for the best savings products that suits your needs – While the economic impact of the past year continues to unfold, it’s more important than ever to make sure that your savings portfolio works for you. If you need quick access to your money without any withdrawal fees, an easy access saver would be best. Alternatively, if you’re happy to put some money away for an extended period and take advantage of tax-free interest a fixed Cash ISA could be an option.
- Make sure you understand withdrawal fees and other potential charges – It’s vital to read the fine print before you sign up to an account. Depending on the type, some products may charge for early withdrawals, limiting you to withdrawing a certain amount or require a period of notice before you can remove your money. The fine print may look intimidating but it is important, so if you’re unsure, seek advice.
- Work out a budget that suits your lifestyle – When we asked savers aged 45 and over to share one piece of advice they’d want to pass to the next generation, many agreed that when it comes to managing money, keeping a close eye on finances and finding a budgeting system that works for you is crucial. Trying different methods and tweaking it to suit your lifestyle and current circumstances could mean you save a little here and there. This concept is often more familiar to more established savers, but this time of year is an ideal moment to share or discuss your own savings habits with younger family members too.
Whatever you plan to do with your money, we’re here to keep it safe, with simple, easy to understand products that help you to achieve your savings goals.