Money matters in Big Local areas, Niamh Goggin

Developed by Niamh Goggin, Small Change

Hazelwood Neighbourhood Centre, Gainsborough Rd, Corby

8th Feb. 2014

Money matters in Big Local areas

Money Matters

• Welcome• Using the workbook

Activity – something to DO

Reference – something to read later

• Checking your learning– I get this– I can explain this– This is important for our Big Local

Breaking the ice!

• Introduce yourself to one of the people at your table, who you don’t already know;

• Find out their name, what Big Local area they are from and what they hope to get from the day;

• Make a note and we’ll ask you to introduce each other so we all know who is in the room.

What’s Up Today!

• Budgeting• Savings• Better Borrowing• Better Buying• Consumer Rights• Big Local Money Matters Tips• Impact on your Big Local Area• Next Steps

Money WorriesMoney Worries How can we help? Comments

Money never seems to stretch to end of fortnight

Budgeting, better buying

Budgeting

A budget is a plan of all the money you have coming in and all the money going out. Having a budget and USING it to manage your spending means..

YOU ARE IN CONTROL!

How to Budget

• How do people in the room manage?• Jam Jars / cash budgeting • Spending diary• Cut back calculator• Budget planner• Monthly Money Matters session

Making the Most of your Money

• Claim benefits you are entitled to• Get on top of any debts–clear high interest 1st

• Stay in control – open the bad news envelopes• Free Advice and information

Money Advice Service is the government’s free, unbiased, independent advice service with advice, tools, resources and news on managing your money.0300 500 5000 or https://www.moneyadviceservice.org.uk/en

Savings

• Why save?• How to Save

– Set a savings goal– Work out how much you can save a week/month– Decide where to put your savings– Get started and watch your savings grow

Golden Rules of Saving

1. Safety first – not under the bed!2. Little and often3. Rainy day money4. Goals and rewards5. Teach your kids to save

Better Borrowing

• What matters most when borrowing money?– The interest rate (APR or AER)– How long you borrow for (the loan term)– How much you have to pay every week or month– Whether you can afford the repayments– Whether you have to travel to the office to make

the repayments– How much you repay in total– What matters most to you?

Five Factors

1. Interest rate - lenders are obliged to quote you an annual interest rate which includes all fees. If they don’t do so, they are breaking the law;2. Cost per £100 borrowed - a handy way to compare costs between borrowers;3. Can you afford the weekly or monthly repayments?4. Total cost of credit - how much in total will you have to repay for your loan;Watch out for hidden penalty charges and interest rolled over5. Finally, you need to match the loan term to the benefit.

Better Buying

Where could you save money:• Gas and electricity?• Water?• Phones?• Mobile phones?• TV subscriptions• Insurance?• Travel?• Holidays?• Food shopping?

• What are your best tips?

Buying Advice• Home phone• Broadband• Mobiles• Gas and Electricity• Save Energy• Travel Costs• Shop smart:

– Price comparison websites– Supermarket vouchers and codes– Discount vouchers and codes

• Smarter Buys http://gm.sbstore.org/how-does-it-workThe Greater Manchester Smarterbuys Store is a brilliant alternative to high street weekly payment shops who charge very high interest rates. Its being promoted by Northward Housing is an alternative to high street weekly payment shops who charge very high interest rates. Its being promoted by Northward Housing

Know your SADFART rights!

• Goods must be:– Satisfactory quality– As– Described– Fit for purpose– And last a– Reasonable length of– Time!

• The RETAILER is responsible!

• You have up to six years to return faulty goods, but after six months, you may have to show that the problem is a design or manufacture fault

Services

Services should be provided with:

Reasonable care and skill

Within a reasonable time and

At a reasonable cost.

Online, Mail Order, from Home

Distance Selling Regulations• Seven working days to cancel• The seller must refund your money within 30

days• eBay

– buy it now – as above– Auction-style purchases – much less protection

Enforcing Your Rights

• Know what outcome you want• Act on your complaint as soon as possible• Stop using goods/services• Keep a note of actions/conversations

w’date/time• Keep a log of extra costs• Last resort – Small Claims Court

Welcome

Gary ElmoreCitizens Advice Services Corby and Kettering

Money Matters Tips

• What did you learn so far today?

• What advice would you give to friends?

• What would help residents in your area?

Impact on Your Area

• budgeting • saving• better borrowing • better buying• your rights as

consumers.

• Most helpful to residents?

• How are residents affected?

• Effect on whole community?

• More effect on some groups?

Who could you talk to locally?

• Who could you talk to from your local community?• Who works on this type of problem in your area?• Is there a locally-based money or debt advice

service?• Is there a local credit union or CDFI (community

development finance institution). • Are there payday loans companies, cash-for-gold,

pawnbrokers, home credit providers or illegal loan sharks operating in your area?

Who could you talk to outside your area?

• Niamh Goggin, Small Change: • [email protected] or 02895 810803• • Local Trust: • [email protected] or 0203 588 0565• • Citizens Advice: 08444 111 444

http://www.citizensadvice.org.uk/index/getadvice.htm • • National Debtline: 0808 808 4000

http://www.nationaldebtline.co.uk/england_wales/contact_us.php

• • StepChange Debt Charity: 0800 1381111

http://www.stepchange.org/# • • • Martin Lewis’s MoneySavingExpert.com http

://www.moneysavingexpert.com/ • • ThisisMoney.co.uk.

http://www.thisismoney.co.uk/money/index.html

• • Transact is the national forum for financial inclusion.

Phone: 020 73922961 Email: [email protected] Website: www.transact.org.uk

• • ABCUL is the membership organisation for most

English credit unions. Website: http://www.findyourcreditunion.co.uk/home

• Phone: 0161 832 3694 Email: [email protected] Website: http://www.abcul.org/home

• • The Personal Finance Research Centre, University of

Bristol Phone: 0117 9289954 Email: [email protected]

• Website: http://www.bristol.ac.uk/geography/research/pfrc/about/

• • The Stop Loan Sharks Project allows people to report

unlicensed money lenders (loan sharks) in confidence. Tel 0800 0740878 Text 60003 http://www.stoploansharks.org.uk/

Next Steps

• I think is important• When I get back I will……• We will find out more from ….• Checking your progress flip cards

Thanks

• Local Trust• NANM• Citizens Advice Service Corby and Kettering• Hazelwood Neighbourhood Centre• Tell us what you think• Take your learning card with you• Safe journey home