New research from the National Consumer Council has described singles as today’s ‘invisible poor’. The research finds that up to five million singletons have become the ‘forgotten working poor’ and fail to truly register on the government’s radar for those in need of help.
Singles fail to benefit from the shared costs (economies of scale) that families benefit from, making day to day living more expensive. They have to cover all the council tax, energy and water bills on their own.
Arguably then it could be said that singles have to take extra care to manage their money effectively.
Credit Action and One Parent Familes|Gingerbread, two leading charities, have co-authored a guide for single parents on money management. It can be accessed online here or can be ordered from the One Parent Families|Gingerbread helpline on 0800 018 5026. Even if you think that you are good at looking after your finances, everyone can do it better. Read our guide and continue your financial education.
Please read on for a summary of the important personal finances news stories that hit the headlines for the week commencing 7th July 2008.
Tuesday 8th July
The number of permanent jobs is falling – A British Chamber of Commerce report has shown that the number of permanent jobs being offered has fallen for the first time in five years. This fall is occurring on the back of a slowdown in both the services and manufacturing sectors in the UK.
Falls in manufacturing output have been particularly surprising as the value of the British pound has been falling in value relative to other currencies (the pound has gotten weaker). As the pound gets weaker, it becomes ‘cheaper’ (relative to other countries) for the UK to produce products. This means that products that are exported become more attractive in other countries as they are cheaper than many other competing products available on the market. This is why it is surprising that manufacturing output has slowed.
Wednesday 9th July
Credit card borrowing on the up? –Figures from moneysupermarket.com show that the average credit limit has risen from £6000 last year to £8,234.
Find out more about Credit Cards – do you know what the APR is on your credit card?
Thursday 10th July
Inflation hits poorest hardest – While studies released over the last couple of months have highlighted the plight of the middle-classes with regards to inflation, PWC released a somewhat contradictory report showing that it’s the poorest that are worst affected by rising inflation. As well as rising costs, the poorest have had smaller income rises that the middle-class.
Food prices rise by 7% - Food prices in supermarkets in the UK are 7% greater in June 2008 than they were in the same month last year. Food prices also increased by 1% in the last month, from 6% in May to 7% in June, according to the British Retail Consortium.
Are you worried about rising bills? Have a second look at your budget – looking at potential areas that you can reduce spending – or, if you don’t yet have a budget, start one for the first time!
High deposits demanded from first-time buyers – The Royal Institute of Chartered Surveyors has calculated that the average deposit, stamp duty and legal fees paid by first-time buyers now total £27,738.
Friday 11th July
Pocket money dries up – One in six parents have either reduced or completely cut their children’s pocket money over the last half-year according to insurance firm AXA.
Have a look at the Moneybasics section on Children and Money to find out more about how you can help your children to take control of their finances.
Prepared for Moneybasics by Jason Taylor, Advocacy Officer (Credit Action).
