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If you have decided that your child is ready for their first bank account and ready to learn about financial responsibility then below are some great options for junior bank accounts.

Most junior bank accounts are accessible for children between 11-17 and will need a parent or guardian to be a joint account holder. Your child won’t be able to open a bank account on their own until they are at least 18.

We are living in a cashless world and so if you give them pocket money this would be most beneficial being sent into a bank account, as well as being a secure way for your child to spend.

If your child is asking for more financial freedom and you think they are ready to learn then a junior account is a great option for them.

The benefits of Junior bank accounts

 

A study done by Cambridge University found that children’s financial habits are formed by 7.

This is why it is so important to teach financial responsibility from a young age.

Parent controls

 

At 18 the account will automatically become an adult account and your child will have full freedom. It is best that they have learnt how to correctly handle their money with your help before this transition happens.

 

Whether you are going to University this year or you are already there, the financial side of things can be difficult to manage.

Find some helpful tips you can use if you are trying to save or just make your money go further as a student.

As of March 2024 below are the best 2 year and 5 year fixed term mortgage rates.

With a fixed term mortgage you will not be affected by changing interest rates and you will often pay lower rates than if you were on a variable rate mortgage.

If your fixed term is coming to an end this year and you are worried about the rise in mortgage rates then make sure you are comparing the best deals.

2 year fixed term mortgages

Barclays

Natwest

Halifax

5 year Fixed term mortgages

Natwest

HSBC

Is a 2 or 5 year fixed term better?

As seen above, currently 5 year fixed term mortgages offer lower interest rates meaning you will have to pay back less over time.

A 5 year fixed term is a long term commitment so you have to make sure you will be able to make your repayment for the whole duration.

Pros of a 2 year fixed term

Cons of a 2 year fixed term

Pros of a 5 year fixed term

Cons of a 5 year fixed term

Stay on top of your Credit card payments and avoid debt.

The Office for National Statistics released their unemployment report for the quarter containing December 2023 to February 2024.

Unemployment

 The Unemployment rate has risen to 3.9% whereas last quarter it was at 3.5% leaving many people without a job and a source of income.

The amount of job vacancies and advertising is decreasing by 4.5%, as the number of vacancies in December 2023 to February 2024 was 908,000, a decrease of 43,000 from September to November 2023.

The industry with the most dramatic fall in vacancies was human health and social workers sectors.

Redundancy

People reporting, they left a job due to redundancy has increased by 2.5 per thousand employees.

Number of hours worked

The number of working hours has increased since lockdown measures were relaxed in the UK. However, they are still lower than pre-pandemic levels. From November 2023 to January 2024 there was an average of 1.06 billion hours works across the UK.

Pay levels

In 2024 UK employers should receive a pay rise of 4.4% which should boost the economy and boost morale within workplaces.

The average weekly earnings were estimated at £666 for total earnings and £623 for regular earnings in November 2023. This has been a steady increase over time.

They have also revealed that the monthly update on wage growth, the increase in average employee wages including bonuses was at 5.6% November 2023- January 2024. This shows wages are growing higher than the rate of inflation which is currently at 4%

Annual inflation is slowly falling meaning pay levels can ease.

Forbes reported that there are roughly 3 million workers on the National Living Wage of £10.42 which is set to rise in April 2024.

Why unemployment rates are rising

The Office of National Statistics (ONS) states that the high unemployment rates are due to employers cutting back on hiring new staff. They have stuck to internal staff cutting down the number of vacancies.

They argue that employers are waiting until the economy picks up before hiring new talent as they believe it would be difficult to recruit.

As well as this the cost-of-living crisis is making it difficult to afford to hire new staff.

The ONS have also found a high number of people reporting long term illness deeming them unable to work full time.

 

Budgeting can be difficult to set up and stick to especially if your monthly income is small. If you are trying to save, have noticed the rising prices or just need to cut down to decrease your monthly outgoings then these tips could help you to budget.

When trying to save it is important to first find the right savings account for your needs, there are many ways to make saving simple.

There are many options for savings accounts, below you can find out how each type can help you save.

Easy Access

You will be able to draw your money out whenever you like, this type of account allows you the freedom to know your money Is there whenever you need it.

Close Brothers

Virgin Money

Fixed term

You will decide a term length, either 2 or more years and you will not be able to withdraw your money until the term is over. This is a great option if you are saving for something big and know when you will need the money. A fixed term account also means you will not be able to give in to temptation and spend any of this money.

Barclays

Smartsave bank

Notice accounts

You will have access to you money but only when you give a notice to the provider of when you will need the money. You will need to prepare in advance and tell them in 6 months you will need to withdraw X amount of money from your account. This is a great option if you want to keep your money from being spent regularly and if you know when you will need money.

The West Brom

Regular Savings accounts

Setting up a regular saving account means you could earn a higher interest rate however you may need to set up a current account with the provider before you are able to have a savings account. Regular savings account often have a maximum monthly deposit meaning you can only put small amount in at a time. These are a great way to save smaller amounts and will work well if you are just starting your savings journey.

First Direct

This international women's day we spread awareness for those who work in the financial and business sectors where they suffer from inequality at work.

As one of the top business and financial regions, London is on top in many areas with booming business and advances in investments and more. Despite this city’s success it is greatly behind in it’s diversity and equality movements.

Bloomberg’s report from 40 women across banking, insurance and asset management in Britain have describe diversity and inclusion initiatives as ‘tokenistic’ and lacking any real change in the industry.

Many believe we won’t reach gender pay equality until at least 2050 or later.

Change is moving too slowly to make a real impact in the long run and many are worried how long it will take to reach gender impunity.

The UK parliament released a report on the Treasury Committee’s urge for action on tackling sexism in the city.

Are we Moving backwards?

What needs to be done

The trade union Unite explained:

“We lose good people [ … ] at menopause, when you have qualified, capable women choose to leave their roles due to the lack of understanding and willingness to work through the issues and keep that good person in role.”

 

The Financial and Business sector needs to do more to improve it’s equality and diversity stand point. This will widen their talent pool and improve the skill shortage problem in addition to encouraging more women to take on senior positions as well as enter into the industry to begin with.

If you are trying to save, learn more about finances or want to take on some new techniques for your money then reading from those who have done it or are experts in the field could help you.

There is so much advise out there it can become overwhelming, when finding the book for you make sure it contains what you are looking for and won’t make it more complicated than necessary.

Below is a short list of books which could help you to invest, save, learn about finances and help you build better habits. Pick up one of these helpful reads for world book day and learn more about your finances.

House prices are falling and many believe they will continue on this path through 2024.

This sounds like good news, however for those selling their properties, this means they are having to reduce their asking price. Also, with high and rising mortgage rates, many people still can’t afford to buy.

Predictions for the Property market 2024

Despite house prices falling they are still far above the rates of pre-pandemic house prices due to inflation and high mortgage rates. People can no longer afford to borrow the money necessary to buy a house meaning fewer houses are being bought. Even if people have saved for a deposit paying back the mortgage loan creates a heavy financial burden.

The Bank of England has held the base rate at 5.25% and as a result the average mortgage rates have shot up.

Why have House Prices fallen?

With mortgage rates rising, less people are able to afford to take out the loan, pay the deposit and it is harder to prove you can afford the high rates.

This means buyer demand has decreased across the property market forcing those selling property to keep the prices low.

Where have prices fallen the most?

Zoopla has found that areas in Essex, Kent, Norfolk and Suffolk have seen the greatest price decreases.

Colchester in Essex has seen a 3.7% decrease with the average house price at £303,500.

Even in popular cities house prices are slowly falling such as, Manchester, Liverpool and Edinburgh.

Rightmove found that houses in Greater Manchester have an overall average price of £253,806 with most sales being for semi-detached houses with a 1% fall in average prices in this area.

Property Investors hunting for deals

The Financial times reports that commercial property investors are on the prowl for cheap deals as rising interest rates force many to sell their property in an inability to refinance. Many are having to sell this year and are forced to keep the asking prices low to match the demand, this means investors could very well find a great deal this year.

When Mortgage rates begin to decline, the hope is that more buyers will flock to the property market as more people will be able to afford the loans.

Should you buy now?

Buying a house when the prices are falling would give you a great chance for a better return in a  few years when the house prices rise once again meaning you could make a bigger profit when you sell.

In areas listed above, the house prices are falling significantly allowing you to find a great deal on your home in these locations.

As well as areas with falling prices, Move IQ has comprised a list of areas where house prices are the cheapest including Bradford (BD1) being the lowest with an average house selling for £69,939 in 2023.

If you can match the costs of mortgage rates and afford the deposit then this year could be yours to take the first step onto the property ladder at a lower cost.

In the Spring Budget  Jeremy Hunt, the Chancellor Exchequer has been hinting that there could be tax cuts coming up.

 

What is income tax?

Income tax is the tax you have to pay on your annual earnings or, if you’re self-employed, any profit you make. Depending on how much you earn determines how much income tax you pay. So, the more you earn, the more money you are paying in tax.

Income Tax is used to pay for public services and is the main source of income for the Government. The NHS, railway systems, education and more is paid for using income tax.

You are placed in band based off of what you earn, decided by HMRC, who collects the tax and the higher you earn, the higher your band, the more you pay and so the amount is as fair as possible.

The band you are in decides your tax code and therefore how much you can earn tax-free before you begin paying taxes on your earnings so, you could earn up to £12,570 before being taxed if your tax code is 1257L.

 

Why would the government cut it?

The government wants to cut taxes to relieve financial burdens across the UK however it has been suggested that there may not be enough money to do this.

With the elections coming up this year, the government is eager to make decision which will increase their poll numbers. As the UK entered a recession, the conservatives are under pressure to alleviate the financial pressures on the public.

 

What this means for your money?

If Hunt decides to cut income taxes then there will be the question of, what will pay for the public sector such as, the NHS? This could be spending cuts or using alternative funds.

If income tax is cut this will mean you will keep more of what you earn and be better off financially.

A tax cut will mean a decrease of how much you pay and will not altogether abolish income tax, they have been hinting at a 1p cut which could be beneficial to many.

 

On March 6th the Spring budget will be announced and we will find out what plans the government have made.

 

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