Financial

A sad side effect of the Covid-19 pandemic is that the number of couples divorcing has steadily increased over the past 18 months. In the UK alone, one law firm recently reported that it has seen divorce instructions increase by around 30% since the pandemic began, and the UK’s Citizens Advice charity, which provides advice and guidance on a range of personal issues, has also seen a dramatic rise in visits to the divorce section of its website.

Better living conditions, medical advances and healthier lifestyles mean that people are living longer. Around a fifth of the UK population is now over 65 years of age and, it is estimated that by 2050, it will be one in four people.

As we go through life, we rely on our parents to care for and support us. However, with people living longer, it is increasingly likely that the roles will one day be reversed, and you may need to care for, and support your parents in the future.

Insuring your life is a slightly odd concept as it is one of the few things you pay for that you never actually benefit from! However, knowing your family will benefit financially if you die can be a great comfort to some people, but do you need it?

People have varied reasons for giving to charities. Sometimes it is because the charity supports something they believe in, or it has helped them or a family member in the past. Giving to a charity not only benefits the organisation, but it also provides a sense of wellbeing and empowerment to the donor because they know they are doing something positive by helping others. In fact, research has found that donating to a charity increases activity in the part of the brain that registers pleasure.

As is often the case when it comes to finance, the world of loans seems to have its own language and can get complicated, very quickly.

Here we aim to explain some of the language and answer some of the common questions about loans, to help you if the need to borrow money ever arises.

What is a loan?

Loans come in all shapes and sizes; from a friend lending you £5, to a mortgage to buy a home. However, the principle of all loans is the same. A loan is an agreement between you and a lender where they give you money, and you agree to pay it back.

When something you rely on breaks, such as your central heating or car, having money put aside to pay for it to be repaired or replaced, makes life a little less stressful. Similarly, if you fall ill, or you lose your job, having enough money put aside to pay your essential bills will give you breathing space to recover or find a new job. That is why building an “emergency fund”, savings which are there to help you deal with the unexpected things life sometimes throws at you, is something everyone should do.

In an age where offers of credit seem to be everywhere, and the financial impact of the Covid-19 pandemic is increasing the reliance on credit cards and overdrafts for many people, it might come as a surprise that around half of the adults in the UK have never checked their credit score.

It may be because they are not planning on applying for a mortgage, getting a credit card or purchasing anything on finance, any time soon. Or it may be because they do not know how, or why, it is important to keep track of their credit score.

A few weeks into the month, do you find yourself wondering where your wages have gone? If the answer is yes, you probably need a budget.

Creating a budget might seem a bit scary if you’ve never done one before, but it’s not.  A budget essentially helps you see how much money you have coming in each month and where that money goes. Creating and sticking to a budget means you are much more likely to:

Be in control of your money