We're campaigning to encourage individuals to move from debt to savings. After a decade of debt accumulation amongst consumers, we are seeing the beginnings of a welcome and necessary rebuilding of savings in the wake of the recession.
In the modern world it is not unusual for people to find themselves in difficulty due to debt problems. Total UK personal debt at the end of December 2009 stood at £1,460bn. We understand that these debts pose immediate problems, but are also a significant barrier to being able to start saving for the future. However, without access to education and information on managing personal finances, many people do not know where to start when faced with the challenges of budget management.
We believe a holistic approach to this problem is needed, starting with better provision of education on managing personal finance in schools, and making sure people have the advice and support they need as they go through life. This is particularly important during a recession, where both finance and viable financial advice can be in short supply. To reflect the breadth and depth of this issue, our activity in this area is diverse, and includes:
- Supporting two credit unions to attract more investment from ethical investors and loan applications, in turn attracting investment from agencies such as the South East England Development Agency, and helping advance the UK's government's Financial Inclusion strategy. Read more in our Case Study.
- Working in partnership with A4e to deliver their "Money Guidance" programme via our Employed Sales Force in the North East of the UK. Read more in our Case Study
- Supporting the largest non-governmental schools mathematics programme in the UK, focusing on the practical application of mathematics in 707 UK schools. Read more in our Case Study
In 2010 we will:
- Create a "Credit Union Marketing Campaign in a Box" for credit unions to use to connect with more consumers, providing this important first taste of saving.
- Support A4e in their UK wide rollout of services and also jointly pull together a business case for the Treasury to create closer and commercially viable links between generic and specific financial advice.
- Continue to expand our Maths in Schools programme to cover more teacher meetings and activity days in schools.
These relationships provide us with a unique insight in to the barriers to saving and knowledge that we can use to tailor our savings products.
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