22 May 2019 We all have dreams of finally saving enough to be able to jet off on a five-star holiday, throw a picture-perfect wedding or get our hands on a shiny set of wheels. With many financial experts suggesting that we should save 20% of our take-home salary for big purchases, how long will it take us?

A new study from Compare the market bases the average 20% saving figure on the widely-recognised 50/30/20 guideline that suggests 50% of your income should be spent on essentials such as housing and utilities, 30% on non-essentials and entertainment, with the remaining 20% being saved.

The findings shows people how long it will take them on average to save for their biggest life purchases. All figures are based on the average UK salary of £29,832, which amounts to a post-tax, take-home figure of £1,985 per month.

Please note: figures for the cost of a holiday are based on UK average spending. You should not spend more than you can afford on any item of expenditure.

For more expensive items such as a car or wedding, it would not be possible to save the required amount within a 12-month period based on the average salary. Figures are supplied for illustrative purposes only.

Summer saving

While not quite as large a purchase as a new car or dream wedding, holidays still come with a hefty price tag that has to be factored into a saving routine. According to the ONS, most people spend around £670 each on their trips abroad.

If you were to save for one year for a holiday, this would mean putting aside £56 each month, amounting to 3% of your monthly income if you earn the UK average salary. However, dedicating the full 20% of your monthly income to saving for that dream vacation means you could be heading off in just over two months by putting away £397 each month.

New car craving

Whether your current car is reaching the end of its lifespan or you just feel like treating yourself, nothing quite beats that new car feeling. The most popular car in the UK is the Ford Fiesta, with an average retail price of £15,665. So, how long do you need to save to drive off in a brand new car like this?

It might be unrealistic to try to save for this purchase in just one year, as the study shows this would mean saving £1,305 each month – 66% of the average take-home salary. Instead, if saving the recommended 20% (£397) each month it should take around 40 months (a little over three years) to make this purchase outright.

Wedding fund

Aside from a house, a wedding is probably one of the biggest items of expenditure most people will make in their lifetime. A wedding isn’t just one purchase, of course: from the venue, to the dress, to the flowers, it is tens if not hundreds of smaller purchases that, on average, add up to £32,273.

Many people go into an intense saving mode in the run-up to their wedding and there have been countless articles written on how to cut back and make savings for the big day. If you’d rather save sensibly and slowly, our handy tool demonstrates how long it may take the average bride and groom.

Following the 20% model, and saving £397 each month, would mean a £32k wedding pot would be ready in 81 months (just under seven years), although two people putting these savings aside would halve this time. It would be virtually impossible for someone on an average UK salary to save for this kind of wedding in just one year. They would have to somehow set aside £2,689 each month, which is 136% of the average monthly take-home pay.

To see the full breakdown and adjust the figures for your own salary band, please click here.

Please note: figures for the cost of a holiday are based on UK average spending. You should not spend more than you can afford on any item of expenditure.

16 May 2019 Credit blacklisting, criminal records and unpaid student loans. These are just a few of the credit myths that continue to confuse consumers, reveals credit experts TotallyMoney.

The survey revealed some unnerving findings. For example, only 14% of respondents understood there’s no credit blacklist. And just over a quarter realised their address doesn’t affect their credit rating.

But the most surprising (and worrying) result is the connection between credit score and the electoral register.

A huge 58% of adults surveyed didn’t know that being on the electoral register affected your credit rating. This could mean over half of UK adults eligible for credit products are missing out on an easy boost to their credit score.

Alastair Douglas, CEO of TotallyMoney, warns myths breed credit danger and missed opportunities. Douglas said: “The world of credit is already, at times, a complex and confusing place.

“Myths about blacklists, unpaid student loans, and some addresses being more favourable than others, adds to the confusion. And can even be damaging.

“Believing the fictions might influence someone’s decision whether to press ahead and get the support of a credit card or loan, or not. And sometimes the financial support of credit products helps with life-changing decisions.

“It’s terrible to think some people put off certain financial decisions because they believe they’re blacklisted. Or that someone looking to improve their credit score doesn’t know about the benefits of getting on the electoral register.

“If people avoid applying for credit they’re entitled to and make compromises because of misinformation, it can have a real impact on their financial decisions. And our findings show there’s still a lot of confusion among consumers.

“One way to clear up some of this confusion is to get your free credit report. TotallyMoney’s unique credit report analysis shows you what really goes into your credit score and report, and gives you the facts to better understand your financial position.”

Based on TotallyMoney’s Annual Financial Awareness Survey for 2019, here are the most common credit fictions, some theories on where the myths come from, and the OnePoll survey data.

Sorting credit fact from credit fiction

Myth 1. There’s a credit blacklist

Why people believe it: Being ‘blacklisted’ is a commonly used term in the credit industry. It refers to those who make multiple unsuccessful applications, which damages their credit rating and causes more rejections. People have come to believe this is an actual list they’re added to if they have poor credit history. 

The facts: There is no blacklist used by credit companies or Credit Reference Agencies. But every credit company has their own criteria, so there are circumstances when a lender won’t accept a credit application.

The findings: Our survey found that the majority of people thought the credit blacklist was a document that existed. Only a handful of respondents (14%) were aware this isn’t the case.

Myth 2. Credit Reference Agencies decide who gets credit

Why people believe it: CRAs hold all the information needed to determine someone’s credit score and create their credit report.This can lead people to believe that because the CRA holds the information, they tell the lender whether to accept or reject a credit application.

The facts: A CRA is like a huge data library. They pull information from lenders and public bodies to create an individual’s credit report, but the information they hold is for lender reference only. It’s the lender (a.k.a the credit company) that makes the final decision.

The findings: Nearly one in three respondents (31%) believe it’s CRAs that decide whether someone’s application for credit is accepted or declined. 

Myth 3. Where you live impacts credit rating

Why people believe it: When applying for credit you need to give your address. The mistaken belief is that you’re asked for your address because where you live counts towards your credit score.

The facts: Addresses don’t influence your credit rating. Lenders ask for this information to help them find an individual’s credit file and confirm their identity. The only time addresses can cause a problem with credit applications is if the applicant has recently moved house and not updated the CRAs (this makes it harder for lenders to find the right details). Some lenders also hesitate if they see multiple house moves in a short space of time.

The findings: More than a quarter of those surveyed (26%) understood that your address and the area you live in don’t impact your credit rating.

Myth 4. Two scores become one when you’re a couple

Why people believe it: Many couples choose to apply for a joint mortgage, make big purchases together and open joint bank accounts. It’s easy to assume that, as a couple, you have one credit score for both of you.

The facts: Everyone’s credit score is individual to them — even if you’ve been with your partner for a long time. While you can be financially linked to your partner and some lenders will look at both of your scores when considering your application, you still have your own individual credit scores.

The findings:  More than 1 in 2 (52%) were unaware that your partner’s poor credit history could affect your individual borrowing ability, although when you’re a couple, your partner’s credit score is not linked to your own. Around 1 in 5 (18%) thought that your marital status directly impacted your credit score, whilst a few more respondents (37%) knew that any savings — solo or joint — had no influence on credit rating.

Myth 5. A monthly salary improves credit score

Why people believe it: Mostcredit companies ask consumers to make monthly repayments. Some people wrongly believe that because you have the security of a monthly income, it proves to lender they’re in a strong position to pay their credit bills.

The facts: Getting paid a monthly income doesn’t prove to lenders how well you’re able to manage your money or credit. For that reason, when you get paid, or even how much you’re paid, won’t positively or negatively influence your credit score. The best way to prove you can handle credit is making repayments in full and on time.

The findings: Just under a third of people (30%) realised a regular, monthly salary has no impact on credit ratings. It doesn’t put you in a stronger or weaker position compared to someone who’s paid weekly, fortnightly or sporadically (like a self-employed person or freelancer).

Myth 6. Criminal convictions impact credit score 

Why people believe it: This could tie in with the myths about earnings and address history impacting credit scores. Going to prison can affect both of these, so consumers mistakenly believe criminal records negatively impact someone’s eligibility for credit.

The facts: Having a criminal record or being fined doesn’t show up in your credit history, because it says nothing about your ability to make repayments. So, this won’t impact your score. What will affect your score is a County Court Judgement (CCJ) or filing for bankruptcy. A CCJ remains on your credit report for up to six years and declaring bankruptcy prohibits lenders giving your credit for 12 months. 

The findings: Only one fifth of respondents (20%) were aware that even if you have a criminal record, it won’t affect your credit score.

Myth 7. Unpaid student loans damage credit rating

Why people believe it: Part of being accepted for credit is based on how you repay loans and borrowed money. So, it’s fair to assume that because a student loan is a loan, how it’s paid back is taken into account when working out credit scores.

The facts: Students loans aren’t visible on your credit report, so don’t impact your credit score. This is because they’re paid back through salary deductions. However, any credit cards or additional loans you take out as a student — so anything other than your tuition fee or maintenance loan — will show on your credit report. 

The findings: Of those surveyed, just over a quarter (28%) knew that a student loan can’t affect your credit rating.

15 May 2019 Sainsbury’s Bank Travel Money has analysed its Travel Money currencies to identify which destinations are on the rise for travellers looking to get away from mainstream tourist locations.

Four currencies have jumped up in use over the past four years, indicating the growing popularity of the countries. British travellers are choosing to stay closer to home as European destinations dominate some of the most bought currencies. 

The top currency climbers

Currency 2018 position 2015 position
Polish Zloty 7 14
Czech Krona 8 12
Hungarian Forint 13 20
Islandic Krona 15 18

Polish Zloty has leapt up in popularity, moving from the 14th most bought currency in 2015 to the 7th in 2018. Tourism data also demonstrates the growing attractiveness of Poland for international visitors as the country has seen record-breaking tourist numbers in the past two years. Its emerging music scene may be the reason for its growing number of visitors. Electronic music fans can join the floods of music lovers at Unsound Music Festival in Krakow and its popularity has led to expansion into other cities including New York, Prague and Minsk. For holidaymakers who love music, Poland could be a place to visit this year.

Czech Krona has climbed up the charts from 12th position to be the 8th most popular currency. Tourism data echoes the travel money trend with the country receiving a record 13.2 million international visitors last year. Since October 2013, its annual Signal Festival has showcased Prague’s architectural features using light art and new technology, where it  has been named among one of the best light festivals in Europe.

Hungarian Forint has experienced the biggest increase in popularity, flying up to the 13th most popular currency in 2018 from 20th place in 2015. Tourism statistics support the currency trend as visitors have increased by 5% in the past year . Budapest attracts hundreds of thousands of festival goers for its six day long Sziget Festival in August. Last year Brits dominated the festival as the second majority ticket buyers after local residents. Previous headliners such as Stormzy, Kendrick Lamar, Dua Lipa, Kasabian, Rihanna and David Guetta make it a must-see international music event.

Icelandic Krona’s popularity has been on an upward spiral in recent years, moving from the 18th most popular currency to the 15th. Iceland has experienced a recent tourism boom years with 2.2 million people visiting the country in 2017, a 24% increase on the year before(. Its popularity has been helped by the filming which took place there for the popular TV show Game of Thrones. 

Simon Taylor, Head of Travel Money at Sainsbury’s Bank said: “Our currency data shows that European destinations are popular with holidaymakers who are looking for cheaper short-haul flights for a cost-effective trip. When preparing for your getaway, make sure to check out the latest travel money deals beforehand to get the most bang for your buck so you can save your money for holiday treats instead.”

Top money tips for your next getaway from Sainsbury’s Bank:

1.     Deals: Check out deals on offer to save you from spending your money on holiday must-haves before you’ve even left the house. Sainsbury’s Bank Travel Money is offering customers who take out a Sainsbury’s Bank travel insurance policy £5 off when they spend over £500 on travel money.

2.     Panic at the airport: Airport travel money kiosks often have poor exchange rates, which can leave you getting less holiday money in your pocket. Be sure to leave plenty of time before your holiday to get your vacation cash.Sainsbury’s Bank Travel Money has an online exchange rate calculator which calculates how much more you could get for your money with a Nectar card.  You can also order travel money online with Euros and US Dollars for collection at any of our 260 Travel Money bureaux the following day.

3.     Friendly finances: If you’re heading away on a trip with friends, have a conversation with them before you go about how much they are planning to spend. This way you will all be on the same page while you’re away.

4.     Budget: On holiday it can be easy to get carried away with spending. Make a budget before you go and try your best to stick to it. Have a look at apps which split bills for you to save the hassle of working out how much everyone has to pay while you’re at the dinner table.

5.     Don’t get caught out: Did you know that without travel insurance you’re not covered if your holiday is cancelled or you’re not able to go? Don’t leave taking out travel insurance until the last minute, or you could end up out of pocket if anything happened to your holiday plans. Sainsbury’s Bank Travel Insurance offer Nectar cardholders up to 20% off their travel insurance .

15 May 2019 The annual cost of being retired mounts up to £11,830 a year or nearly £230 a week, new analysis from the UK’s leading independent equity release adviser Key shows.

Costs mount up from spending on the basics such as food, clothes and utility bills while leaving some spare cash for eating out and entertainment, the analysis of the latest Government spending data shows.

The weekly bill of £227.50 per person needed to fund the basics amounts to 35% more than the full basic State Pension of £168.60 available for those who qualify, underlining the need for other sources of income in retirement.

The national average cost of retirement at £11,830 a year does not paint the full picture for the UK as a whole – the cost of retirement in the South East of England is nearly £4,000 a year more at £14,270 than in the West Midlands where the cost is £10,280.

Retired people in the South East, South West, London, East Anglia and the East Midlands all need to find more than the national average while the less expensive areas of the country include Wales, Northern Ireland and the North East of England.

Key’s analysis shows the two biggest weekly costs are utility bills – gas, electricity and water – and food with both accounting for 20% of spending. Both cost around £2,370 a year on average.

Transport, including the cost of running a car, eats up around 16% of bills while spending on entertainment costs around 23%.

The basic costs in retirement underlines the need to maximise income from all sources available including property. Key’s data shows retired homeowners using equity release plans take an average £76,500 in property wealth from their homes which is enough to fund six-and-a-half years of the basics without spending on anything else. The property wealth released would be enough to cover the shortfall between the State Pension and basic spending for nearly 25 years.

Will Hale, CEO at Key said: “With retirees needing 35% more than the full state pension provides, people need to think carefully about how they will bridge this gap.  Workplace and private pensions as well as savings and investments can help but for most people maintaining a decent standard of living in retirement means maximising all sources of income. Property is increasingly a major part of retirement planning with retired households literally sitting on more than £1 trillion of wealth.

“The money that older homeowners can access through equity release is substantial and is being used for a wide range of needs.  This includes helping other family members by gifting, boosting basic levels of retirement income and even paying for unexpected expenses or home maintenance. Good specialist advice is key to ensuring that older homeowners receive the most benefit from their property wealth and use it in the most appropriate way for them and their families.”

The table below shows how retired spending varies around the country:

Region Annual cost of a pensioner Weekly cost of a pensioner Compared to Weekly State Pension
South East £14,270 £274.40 +63%
South West £13,120 £252.30 +50%
London £13,060 £251.10 +49%
East Anglia £12,560 £241.50 +43%
East Midlands £11,870 £228.20 +35.3%
Yorkshire & The Humber £11,850 £227.80 +35%
Scotland £11,730 £225.60 +34%
North West £11,000 £211.50 +25%
Wales £10,520 £202.30 +20%
Northern Ireland £10,420 £200.40 +18.8%
North East £10,400 £200 +18.6%
West Midlands £10,280 £197.70 +17%
UK £11,830 £227.50 +35%

13 May 2019 Only one in three (34%) self-employed millennials, aged 23-38, currently have some form of pension saving, according to analysis from Fidelity International’s report ‘Generation Self-Employed’.

Being your own boss seems to be a compelling prospect for millennials in the workforce with three in ten (30%) saying they would like to work for themselves in the near future.

However, of those who are working for themselves, their finances do not seem to be in the strongest position as almost half (43%) of self-employed millennials do not feel they are saving enough for their future. Furthermore, one in four (26%) say they are struggling financially and another one quarter (24%) say they are not saving on a regular basis. Two thirds (66%) of self-employed millennials have no form of pension savings while three-quarters (74%) of self-employed millennials who are not saving for their future retirement say they simply cannot afford to.

Key reasons why self-employed millennials choose to work for themselves:

1 Freedom to choose where I work 94%
2 Starting their own business 86%
3 Earn a higher salary 82%

Fidelity International’s new report, Generation Self-Employed, explores how the self-employed are managing their personal finances and their attitudes towards saving and investing. It is clear to see the drive to earn a higher salary doesn’t equate with financial security. In fact, the report reveals 40% self-employed millennials have never heard of a Self-Invested Personal Pension (SIPP).

Emma-Lou Montgomery, associate director for Personal Investing at Fidelity International comments: “It is never too early to save for retirement, especially for the army of ambitious millennials who want to work for themselves. The beauty of youth – never more so than when it comes to saving and investing – is that time is firmly on your side. Every penny you put aside in your 20s (or younger) will grow into something worthwhile, thanks to the magical power of compounding. This is when the returns you make on your hard-earned cash start to generate their very own returns. All without you having to do anything more than stay invested.”

“Fidelity’s calculations show investing early while still in your 20s could leave you £60,000 better off in retirement and it shows just how crucial it is for investors to take advantage of compounding by beginning their investment journey earlier on in life.

Investing at the age of 28 vs 38

“If an investor starts investing at the age of 28, putting £2,000 in the stock market every year for 20 years, receiving an annual return of five per cent, at the age of 48, their investment is worth a little over £69,000. If they stopped contributing money at this point, this is when the magic of compounding is ignited. Their savings increase exponentially over the next few years thanks to interest, with the portfolio’s value climbing to £159,154 by the time they are ready to retire at 65.

“If on the other hand an investor waits until they turn 38 before starting to invest, their portfolio is also worth just over £69,000 by the time they stop investing, aged 58. However, the money is given less time to work, as they head towards retirement. By 65, their pot has grown to £97,706 – £61,448 less, despite both contributing the same amount of money for the same period of time.”

Emma-Lou Montgomery adds: “The example shows just how powerful compounding can be and how investing when you’re younger offers significant rewards. There is a perception that becoming an investor requires age and experience and it’s a myth. In fact, the lesson is this – the sooner you plant the seed of investment, the higher your investment tree should eventually grow.”

08 May 2019 The majority of over-45s do not know how much inheritance they will pass onto their beneficiaries, according to Canada Life’s 2019 IHT Monitor.

Two thirds (63%) of over-45s have not told their beneficiaries how much inheritance they plan to leave them, highlighting the ongoing uncertainty regarding the amount of money needed to fund later life.

Despite this lack of clarity, over a third (35%) of those passing on an inheritance believes their beneficiaries will use at least part of it to fund their own retirement.

This suggests many are in the precarious position of failing to plan adequately for later life and are relying on an inheritance windfall, which may not necessarily be passed down, in order to enjoy a comfortable retirement.

Over-45s concerned they will use up all their assets in retirement

One of the biggest concerns for over-45s is that they will use up all their assets to fund their own retirement and leave nothing behind for their beneficiaries.

Two in five (39%) are worried about this scenario, while a similar proportion (40%) are concerned they will not have enough saved in their pension to cover their later life. Meanwhile, three in ten (30%) are worried about giving away funds to family members that they may need for their own retirement.

As a result, it seems the majority of over-45s have accepted their beneficiaries will receive less inheritance than they might hope for. Two thirds (63%) of over-45s plan to leave only what is left over to their beneficiaries, while 16% will leave nothing and spend everything to fund their own retirement.

Neil Jones, Wealth Management and Tax Specialist at Canada Life, commented: “There is a clear disconnect among over-45s between their desire to leave something behind to their beneficiaries and the need to fund their own retirement. It seems that many are losing the battle, acknowledging they don’t know how much they’ll be able to leave behind to the next generation.

“It appears that many people over the age of 45 may not have clarity on their finances – what they need for later life and what they can set aside for their children, grandchildren and loved ones. To rectify the situation and gain control of their finances, over-45s should visit a professional adviser.”

01 May 2019 Though the winter months are falling far behind us and the warmer weather is now setting in, research from home and boiler cover company, Hometree, reveals that over a third of UK households – the equivalent of around 6.4 million homes – say they wouldn’t be able to cover the cost of a broken boiler, putting them at risk of having no hot water or heating in their homes. In addition, one in five (20%) admitted they had nothing set aside for when their boiler went wrong.

And yet, a worrying 72% said they had no cover or insurance to protect them in the event of a boiler emergency.

Considering the average cost of replacing a boiler is around £2,500, the usual amount that households that owned their boilers had set aside was £765. However, this figure dropped to just £444 for those aged under 35.

This revelation comes as Hometree moves into the boiler cover space with the launch of Hometree Care Packages.

The boiler, heating and home products will offer a service plan protection for homeowners and landlords, offering emergency boiler repairs, replacements and annual services for your boiler.  Promising to be the ‘cover that actually covers’, Hometree’s new service plan is the most comprehensive boiler, heating and home cover compared to its competitors.

Simon Phelan, CEO of Hometree, said: “For many, boilers are the last things people think about when it comes to their home – until something goes wrong.  Having a boiler breakdown, leaving a home suddenly with no heating or hot water can be stressful enough without having to think of the costly bill that comes with repairing or replacing it.  With over a third of us having concerns about being able to cover the cost of a broken boiler, we advise homeowners to check they have the right cover in place to protect them and offset any unexpected expenses from such a breakdown.

“For a long time, consumers have been fed up with the same problems with big, traditional home cover companies. Confusing products, complicated pricing, price hikes and poor service have left too many people feeling ripped off and let down.  It’s time this changed. We’re thrilled to offer a cover product that actually covers, providing an affordable and comprehensive plan to our customers that will mitigate stress from a broken boiler and help save homeowners thousands in the long run.”

30 Apr 2019 Power of Attorneys allow people to appoint someone to make decisions on their behalf, should a time come when they lack the mental capacity to do so themselves. If the person has already lost mental capacity then the Court of Protection can appoint a deputy to make decisions on that person’s behalf.

Among adults who know of Power of Attorney, around three quarters (76%) are aware of a financial Power of Attorney. Yet only around half (48%) are aware of a welfare Power of Attorney, which covers things like end of life health care decisions. 

There is a clear gender divide amongst those who understand Power of Attorney with  a quarter (23%) of women saying they have discussed setting one up compared to just one in six men (17%). Men (18%) who haven’t discussed setting one up were also more likely than women (8%) to say that they did not think they would ever need to set one up.

The study also found there was a lack of discussion on the subject, with almost half (48%) of adults not thinking they are at an age when they need to think about it, despite three in 10 (34%) being over 55. One in five (19%) said the reason for not discussing it was because they did not want to think about being unable to manage their own affairs.

Mona Patel, consumer spokesperson for Royal London, said:

“It may be uncomfortable to think about not having the mental capacity to make decisions, but it is important to plan in case this happens. While official figures show nearly 800,000 registrations were submitted last year in England and Wales, it’s concerning that only a third of people who have heard of a Power of Attorney fully understood how it works.  Appointing a family member or trusted friend to make financial or welfare decisions on your behalf stops the responsibility falling to the state and loved ones then having to apply to the Court of Protection, which can be emotionally difficult, time consuming and expensive.” 

Royal London’s Power of Attorney guide explains how to set one up and goes through the key things people need to think about before deciding to act as an attorney.

30 Apr 2019 Anders Nilsson, spokesperson for weflip, said: “This decision by Ofgem which comes into force tomorrow, will not only provide financial compensation if something goes wrong, but will help to restore confidence in the switching process and the energy market as a whole, after a rocky few months of supplier failures and erroneous switches.

 “The energy price cap has left many households with little alternative but to take matters into their own hands to save money, and while most switches go smoothly, it’s good to see that customers have been provided extra protection, and suppliers have an incentive to ensure more switches happen without a hitch. .

 “Ofgem’s  longer-term plan to introduce further compensation for delayed switches and late final bills, along with the tightening of the rules on new suppliers entering the market, is all reassuring.

“But it goes without saying that the long-term solution to energy price rise frustration is to subscribe to an auto-switching service like weflip that can track prices and switch you automatically to a better deal, whenever it is possible to save money.”

For more information on how to save on your energy bills for life, visit: https://www.weflip.com/.

24 Apr 2019 Research from financial wellbeing experts Neyber found that one in five young people1 in Britain admit that their finances are out of control.

It also uncovered that an alarming 70% of people under-34 need to regularly borrow, either to pay their monthly bills or deal with day-to-day living expenses, and that payday lenders are more commonly used by the young (8% of 18-24 year olds had used one, compared with no one over the age of 65).

What’s more, according to the Money Advice Service, 18% of young adults have borrowed money from a friend or a family member to pay for necessities like bills and 61% agreed that their life would improve if they could manage their money better.

Heidi Allan, head of employee wellbeing at Neyber, says: “Whether it’s job uncertainty and fluctuating wages as a result of zero hours contracts, university loans or increasing property rental costs, many young people are seeking out unnecessarily expensive loans and other forms of credit just to support day-to-day living. One of the many impacts is that they aren’t able to create savings – for a buffer when they need extra financial support or a deposit on their own home. Good financial wellbeing is far too remote for far too many young people today.

“Employers can help. Being paid for the first time is one of life’s many milestones and the beginning of a lifelong relationship with earning, saving and spending money. Getting that relationship right from the start is the basis for good financial wellbeing, and employers have a unique opportunity to help young employees when they first join the workforce.