For many people, thinking about money – and the associated worries – can have a huge impact on their emotional and physical wellbeing.
In fact, an estimated 11 million people have less than £100 in savings according to the Money & Pensions Service – a particularly worrying statistic as people’s salaries may become more stretched in the wake of rising living costs.
A lack of financial literacy, such as being able to budget and manage daily expenses, often causes or exacerbates financial stress.
If you have children, tackling the topic of money early and educating the younger generation can be key to avoiding money worries later in life. Sponsored by Quilter, MyBnk is a charity that arms young people with vital money skills through innovative, high-energy financial education programmes.
It’s hard to talk about money with a partner or friend, but there is help out there. MoneyHelper gives some great tips in their article ‘How to have a conversation about money’ on how to prepare for and start a conversation, including how to deal with any negative reactions and how to end positively, with a clear action plan.
Before you start the conversation, it may be helpful to have the following:
Starting to take small, practical steps may also help to ease gnawing money worries straight away. Easy lifestyle changes can make a huge difference. For example, cutting out your £2.50 daily takeaway coffee could reduce your annual expenditure by more than £600.
Read our ‘tips to improve your financial and mental health this year’ to understand why it’s so important to have these conversations.
Finally, whatever your concerns, it’s important to speak up. Staying silent while trying to muddle through is rarely the answer.
A good place to start is speaking to Government backed services such as MoneyHelper, or a charity such as StepChange or Citizens Advice, which can offer free support.
For some, speaking to a professional financial adviser might be the best option to help you make a long-term plan for your finances.
