Whether you’re a parent feeling the pinch with the new term, or simply want a bit of a refresh, these money ‘lessons’ will help you make the grade.
15 September 2019| Last updated on 16 September 2019
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The summer is over – and family bank balances are likely suffering dents from the holidays, as well as children’s back-to-school costs – making it the third biggest retail spending event after Christmas and Black Friday.
But now the kids are back in the classroom, there are some ways you can help improve your finances – whether it’s sorting your pension, saving for a rainy day, even getting a new mortgage or dealing with debts.
“Parents who have done everything they can to prepare their children for the new school term may feel that they have neglected their own financial wellbeing,” says Rachel Springall, finance expert at Moneyfacts.co.uk. “If this is the case, there are many steps parents can take to rein in their finances and get back above board.”
You don’t have to be a parent to benefit from getting into ‘back to school’ mode with your finances either – these tips could be useful for anyone.
Here are some suggestions from Moneyfacts.co.uk going ‘back to school’ with your money…
2. Re-mortgage to reduce your monthly repayments
Some borrowers may be sitting on their mortgage lender’s standard variable rate (SVR) after an initial deal has come to an end. But big savings could be made by switching to a new deal.
According to Moneyfacts.co.uk, in early September, the average SVR stood at 4.89% – but the average two-year fixed rate mortgage on the market had a much lower rate of 2.47%.
“Borrowers may also be concerned about economic uncertainties and are looking to fix for longer,” says Springall. “Thankfully, there have been significant cuts to deals in the five-year fixed market, as well as more deals surfacing for even longer terms, such as 10-year and 15-year fixed deals. All in all, borrowers have plenty of choice, but seeking independent financial advice may be wise to navigate the mortgage minefield.”
6. Build a savings fund
As well as saving small amounts often yourself, you may also be able to get extra help to save, which could be particularly helpful if your budget is very tight.
The Government Help to Save scheme aims to help eligible people on low incomes to build up a rainy-day fund. More information is available at gov.uk/get-help-savings-low-income.