The government is encouraging Britain to stop being reliant on credit cards and become a nation of financially savvy savers by 2030. To achieve this, the Money and Pension Service (MaPS) have identified five agendas for financial change within the UK and are launching an ambitious strategy for financial wellbeing to achieve the goals they have set. This made Northern Community Bank look at our offerings to see how we fit in and contribute to achieving these targets.
The targets identified are:
- Financial Foundations: 6.8 million children and young people getting meaningful financial education – an increase of 2 million from 2019.
- Nation of Savers: 16.7 million working age people who are struggling and squeezing saving regularly – an increase of 2 million.
- Credit Counts: 2 million fewer people often using credit cards to pay for food or bills.
- Better Debt Advise: 2 million more people getting the debt advise they need; currently only 32% of those who need debt advice obtain it.
- Future Focus: 28.6 million people understanding enough to plan for their later lives, and during them – an increase of 5 million.
What this means in relation to Northern Community Bank?
Northern Community Bank is an ethical financial not-for-profit cooperative, therefore is fully supportive of this vision for improved financial wellbeing within the UK.
Although a lot of our products and services already support the UK strategy for financial wellbeing of our account holders at Northern Community Bank. As we offer affordable credit to those that need it, whilst encouraging account holders to save with us. With a number of different savings accounts and loans options to suit all, these accounts are beneficial for all walks of life.
Christmas Club Saving Account – This account enables you to save throughout the year but withdrawals can only be made during November and December. This means that Christmas savings really are just for the Christmas period reducing the need to be reliant on credit at this festive time of year. This year our account holders saved £150,000, 20% of that being from Family Loan and saving scheme account holders alone. This is amazing to say the scheme has only been operating for 6 months!
Young Savers – With over 860 young savers accounts for children and young people, under the age of 18 years old, our account gives young people the opportunity to learn how to manage money and therefore helps to build financial foundations for their future.
Fixed Term Deposit Account – Our new one year fixed term deposit with a highly competitive interest rate encouraging account holders to have a future focus for their finances. This could be budgeting for their retirement or the deposit for a house. Whilst supporting other members of the community by allowing us to issue further loans through the cooperative pooling of money.
Saving As You Borrow – Northern Community Bank also offers affordable credit in the form of a loan to individuals who need it, these loans are issues ethically with repayments made to suit you. When obtaining a loan from Northern Community Bank all our account are required to save as they borrow, this is to encourage better saving habits whilst facilitating us providing more loans.
Why is this strategy needed you may ask?
Caroline Siarkiewicz, acting chief executive of the Money and Pensions Service, said:
Financial wellbeing underpins personal health and happiness but it doesn’t happen by chance.
We know that in the UK alone 11.5 million people have less than £100 in savings to fall back on (particularly millennials aged between 20-30), 9 million people often use credit to pay for food or essential bills and 5.3 million children aren’t getting a meaningful financial education. Therefore demonstrating a need for change in financial wellbeing.
Sir Hector Sants, Chair of the Money and Pensions Service, said:
The importance of financial well-being is under-appreciated. It’s not only about financial capability but also feeling secure, in control confident and empowered in to relation to money. Is it central to personal wellbeing and thus to living a contented life.
Understanding and acting on these financial occurrences effecting millions of people, is therefore a necessary and appropriate strategy to improving financial wellbeing on a national scale.
Overall, we are very pleased to hear about the progression in financial wellbeing driven by MaPS and are fully on-board with the scheme. For more information regarding the different savings accounts or loan option please feel free to pop in to one of our branches in Burnley, Nelson or Colne. Alternative, call us on 01282 691333 to speak to one of our highly skilled members of staff.
