Each November, Money Helper hosts Talk Money Week, aiming to start conversations around money and finances in the workplace, family and friendship groups, school, and wider communities. Not talking about money can be damaging to those around you, but it can feel awkward to talk about. For many people, talking about finances is taboo, and it can be considered rude to bring up.
My Money Matters wants to help break that taboo to promote financial literacy and wellbeing amongst all our users. This week is an opportunity for everyone to get involved in talking more openly about money to help them make better financial decisions, have stronger relationships, and teach their children to form good money habits.
The message we’re spreading this Talk Money Week is very simple: Do One Thing. We’re asking you to share the ‘One Thing’ you want to do to get the discussions going.
Make Your One Thing Happen
Decide on your ‘one thing’
Share in the comment section below
Encourage others to do the same!
Covering the basics
Talk Money Week is all about learning more about how to build good financial habits, and the best place to start this journey is with the basics.
Here’s a quick cheat-sheet of commonly used financial terms (1):
Annual Equivalent Rate (AER) - The rate of interest earned in a year on savings/investments. The higher the AER, the better return you’ll get.
Annual Percentage Rate (APR) - The total cost of a loan, including interest rate, term, and any associated costs.
Base Rate – The interest rate the Bank of England charges lenders when they borrow money. The base rate influences what rate lenders charge for mortgages, loans, and other credit agreements.
Capital Gains Tax (CGT) - If you sell or give away assets which have increased in value, you may be liable for CGT on the profit. Normally, this tax applies to shares and other investments.
Compound Interest – Any interest you earn or owe is always added to the original amount of interest, meaning you are earning interest on interest. This can help you increase your savings but will also result in your debt being accelerated.
Credit Score – Your credit score is what lenders use to decide whether to lend you money. You can build your credit score by paying off your debts in a timely manner and avoiding missed payments.
Financial Conduct Authority (FCA) - The services regulator in the UK.
Independent Financial Advisor (IFA) - An IFA can provide you with advice on the best financial products for you through market research. You may have the option to pay a fee for their services, or they might be paid on commission.
Individual Savings Account (ISA) - Savings account that earn tax free interest and have a limit for the amount that can be saved each year.
Retail Price Index (RPI) - The RPI measures inflation in the UK by taking a sample of the cost of goods and services typical households buy (food, heating, housing, petrol, etc.)
Need more help deciphering the often-confusing language used in finance? Visit Age UK's Financial Jargon Buster to learn more.
Looking for more? Our financial education coaches are here to help, with a whole suite of webinars covering retirement options to credit scores.
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Boost your financial wellbeing
After learning the basics, you can start to plan how to improve your financial wellbeing. With the cost-of-living crisis, debt management has been a hot topic in the media, but it can be overwhelming to think about. Research from The Money Charity shows that the average credit card debt per household is £1,308, and the average unsecure debt per adult is £4,161 as of January 2024. (2)
Understanding how much debt you have and how you plan to pay it off is a key consideration when considering your financial wellbeing. Setting a budget is a great way to help you take control of your money.
The good news is, if you do your banking online, you can use Snoop, available through My Money Matters, to easily set up a budget. Simply scan the QR code, download the app, link your accounts, and Snoop will help you track where your money goes each month.
If you’d prefer, you can also set up a budget using Money Helper’s budget planner.
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Planning for your future
Once you’re confident you understand and are managing your current finances, it’s time to consider the future. No matter what your plans are, it’s important to understand and carefully consider all your options. Having a will, for example, will ensure your assets are distributed according to your wishes when you die. The Will Guys are offering all our members a free will service through the My Money Matters platform*.
If you’re looking to become a homeowner, it’s important for you to know what your credit score is and how much you could qualify for. Checking your credit score is quick and easy and can be done for free using several sites, including Experian, Equifax, and Trans Union.
If you’re interested in learning how much you might be able to borrow for a mortgage, Money Helper has a Mortgage Affordability Calculator which you can use for free. Additionally, Money Helper’s Mortgages and Homebuying page contains lots of helpful information to prepare you for first time home ownership or remortgaging.
What’s more, you can access discounted mortgage advice through the My Money Matters platform†.
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*This free service does not include postage and packaging.
†The discount is only available through the My Money Matters platform. Other branches of Mortgage Advice Bureau will charge you the full fee.
Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing other debts against you home.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
Pension Wellbeing
Another key aspect of financial planning is planning for your retirement by ensuring your pension is as healthy as possible. Consumer research from The Financial Services Compensation Scheme (FSCS) shows ‘almost half of those under state pension age are not engaged with planning for their retirement’. (3)
As an LGPS member, you have exclusive access to Shared Cost Additional Voluntary Contributions (Shared Cost AVCs), which give you the opportunity to save on Income Tax and National Insurance contributions while saving for your future.
These savings mean that a £100 contribution will only cost you £72.08 from your paycheck, resulting in an instant boost of 38.7%‡. Go to the My Money Matters platform to find out more.
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‡Basic rate savings are displayed as a guide only. Basic rate assumes an individual paying 20% Income Tax and 8% National Insurance contributions. The actual savings will depend on your personal circumstances and investment fund performance, which is invested by your Shared Cost AVC provider.
A Pension is a long-term investment, the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.
Join us to discuss your One Thing, and how you’re going to achieve your goal.
To celebrate the end of Talk Money Week, we’re wrapping up with some educational webinars looking at key topics discussed during the week. Join us to expand your knowledge and plan for your future.
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Sources:
Financial jargon buster: financial terms explained, Age UK Sep 2024, https://www.ageuk.org.uk/information-advice/money-legal/debt-savings/financial-jargon-checker/
The Money Statistics March 2024, The Money Charity March 2024, https://themoneycharity.org.uk/money-statistics/march-2024/
Attitudes Towards the Retirement of Tomorrow, FSCS Sept 2023, https://www.fscs.org.uk/globalassets/industry-resources/research/fscs-consumer-research_attitudes-towards-the-retirement-of-tomorrow_sept23_final.pdf
My one thing has got to be reviewing my subscriptions - guilty of paying my gym membership when I haven't been in 2 months! That will be £30 back per month that I can put towards other things 🙂 Thanks for the insightful read and helpful tips
Some fantasic resources here, great read! My one thing has got to be re-evaluating my budget. After a few unexpected big bills this month I'm feeling less secure in my savings and want to make sure I can better plan for any unwanted surprises in the future.
This was a really interesting read! It’s definitely made me think about budgeting and planning my spending more carefully. One big thing for me is figuring out how to cut back on takeaways. Usually once or twice a week as a 'treat' from being a full-time working mum and juggling everything else at home. But it really adds up!
Thanks for this article! I need to go through my spending and look my outgoings so I'll look at the Money Helper’s budget planner. Hopefully this will help me with what I can reduce, such as TV subscriptions, music subscriptions and Amazon orders etc. I'm sure it all adds up and some are not needed.
This is a great read thanks! My one thing will be ordering less takeaways - they add up!