Tag: saving

More than half a million more people in line for savings boost

  • Government’s Help to Save scheme now open to 550,000 more people to help with cost of living
  • Those saving £50 a month can expect £25 Government top-up, putting more money in people’s pockets
  • Part of Government’s mission to grow the economy and deliver on Plan for Change

More than half a million more UK savers are in line for Government bonuses worth up to £25 a month to boost their cash pots and help ease rises in the cost of living, HM Revenue and Customs (HMRC) has announced today.

As part of the Government’s mission to grow the economy and improve lives in every corner of the UK and to deliver its Plan for Change, Help to Save is now open to anyone working and receiving Universal Credit – rewarding 550,000 more people.

Its extension to April 2027 means more can benefit from the scheme, which has paid out millions of pounds in bonuses to more than 500,000 people since Help to Save was launched in 2018.

This is evidence of the Government backing the most vulnerable in society with 93% of savers paying in the maximum £50 every month to their Help to Save account.

In Scotland, 36,050 Help to Save savers have paid in a total of £33,584,000 into their accounts, since September 2018.

An account can be set up in less than 5 minutes and easily managed through GOV.UK or the HMRC app, making it accessible to people throughout the UK.

Savers who deposit the maximum amount of £2,400 over four years will receive a bonus totalling £1,200 into their bank accounts, with payments coming at the end of the second and final year.

Economic Secretary Emma Reynolds said: ““Security for working people is at the heart of our Plan for Change.

“We want more people to have a bit in the kitty for a rainy day, which is why we are giving hundreds of thousands more working families on tight budgets access to this support.”

Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Thousands of customers have already benefitted from Help to Save and many more are now eligible to get a great return of 50% on top of their savings, no matter how little you can save each month. Go online or via the HMRC app to find out more and apply today.”

Savers can deposit between £1 and £50 each month earning an extra 50 pence for every £1 saved, with bonuses paid in the second and fourth years of the account being opened. The bonus payment applies to the highest amount saved within the period.

Nearly 18,500 people opened a Help to Save account via the HMRC app in 2024. App users have access to their savings account at their fingertips. They can view their account, check their balance and bonus details, and make a deposit via debit card, bank transfer or standing order.

Money can be withdrawn at any time, although this may affect the 50% bonus payments.

Michelle Highman, Chief Executive of The Money Charity, said: ‘We are really pleased to see the Help to Save scheme extended and made available to more people.

“It’s a brilliant way for people to start to save and to build their financial resilience and futures. Saving even just a little each month will help, and the added 50% bonus payment from the Government means that if you are eligible, then it’s a great place to boost your savings.”

Find out more about Help to Save at GOV.UK.

UK kids dream big as majority aspire to start their own business

Most children in the UK have ambitions to start their own business in future and would like to learn some of the skills that are needed to do so when they’re at school.

The findings come from new research* of 1,000 children aged 9 – 11, revealing their financial habits and entrepreneurial aspirations.

The results show that over two-thirds (71%) of children want to learn about starting their own business at school, while four in five (83%) aspire to start their own business in the future.

The study, commissioned by Virgin Money, also found that children understand the value of saving, with 88% having saved money for something specific before, saving £57 on average. 

Despite the rise in digital transactions over recent years, cash remains a crucial part of children’s financial education. The research shows that almost half (47%) of children save their money in a piggy bank or money box, and 44% use cash when paying for things.  

Parents play a crucial role in financial education, with a remarkable 82% of children saying they learn how to manage their finances from their parents. The survey also found that 92% of children are engaging in conversations about money with their parents or guardians, highlighting the importance of family time in financial education. 

Children also recognise the value of investing, with around two-thirds (64%) preferring to invest to earn more in the future rather than spend it, if they were given £5.

The research by Virgin Money was undertaken to understand more about children’s views on money and entrepreneurship, as part of its Make £5 Grow programme. This programme is designed to develop financial literacy and entrepreneurial skills in 9-11 year olds across the UK, and over 200,000 pupils from over 3,000 schools have so far taken part.  

Newport Primary School, in Brough East Yorkshire, has participated in the Make £5 Grow programme since 2020. Their involvement began when a planned school trip to Northumberland was cancelled due to Covid restrictions. In response, the school organised a unique experience for the students by setting up a school camp-out and expanding it into a larger entrepreneurial project.

Since being involved in Make £5 Grow, the students have engaged in various business ideas, including car washing, homemade sweet treats, ice creams, making arts, crafts, and jewellery.

The funds raised from these ventures contribute to a Mini Festival for the students, featuring a silent disco, DJ, ice cream van, pizza trailer, stuntman performances, popcorn machines, and inflatables for the entire school to enjoy. Additionally, the money has been used to purchase scripts and music for the end-of-year school production. This project has not only provided fun and excitement but also fostered a sense of responsibility and teamwork among the students.

Amy Earl, teacher at Newport Primary School said: “The children count down the days until we start the Make £5 Grow project. They work so hard and deserve to make memories that last a lifetime while sharpening their entrepreneurial skills.

“With the incredible support of their families, who help sell these items rain or shine, the children have gained invaluable entrepreneurial skills and created lasting memories. I would always recommend, and have recommended, this project to other schools and teachers.”

Jasmin Sanghera, community manager at Virgin Money said: “Entrepreneurship is a key driver of growth in our economy, so it’s vital that we help to foster the skills needed from a young age. 

“Make £5 Grow is designed to empower children with the knowledge and confidence to pursue their business dreams, and we are thrilled to see such strong interest in learning about this from young people.” 

Children participating in Make £5 Grow are encouraged to develop innovative business ideas and generate a profit for their school, using a £5 loan per child from Virgin Money. The programme provides pupils with an insight into how the world of business and finance works.

It helps them to build key money management skills by starting a small business, with access to a Make £5 Grow Ambassador for business support and a suite of curriculum-based classroom tools, which have recently been accredited as a financial education resource by Young Enterprise.

The schools keep any profit made after repaying the initial £5 loan. 

Through this initiative, Virgin Money aims to empower the next generation to save, invest, and pursue their entrepreneurial dreams, building a financially literate and economically resilient future. 

Further details are available at www.make-5-grow.co.uk

10 expert lessons to teach your children about money

Finance can be a difficult topic to tackle with young children, but teaching them to have a healthy relationship with money from a young age is important to lots of parents around the globe. 

With this in mind, financial experts from money.co.uk have compiled a list of their top 10 tips for teaching your children about money. 
 

1.       Start with the basics of money and finance 

How you introduce money to your children will partly depend on their age. A good place to start is getting children comfortable handling cash and coins. Explain to them how money is used to buy things and that it must be earned before it can be spent.  

2.       Speak openly about small financial decisions  

Start getting your child involved with minor financial decisions, such as which brands and items to buy when shopping. This way your child is able to understand the decisions you make while also feeling in control of certain financial choices. 

Older children could also help with budgeting while shopping if you ask them to keep a running total of the items you buy. Not only will this help their maths skills, but it can also help them to understand how small items can still add up in price and not everything is affordable on a budget. 

3.       Try simple games and toys with younger children 

Creating easy monetary games such as counting pennies can help your child understand the value of different denominations of money. Try using a pile of 1p coins and asking your child to match the number of coins to the price of a higher value coin, such as 10p or 50p. 

4.       Set a good example with your own finances 

There’s no two ways about it, children learn money habits from their parents. Showing them small activities such as checking the receipt after your shop or putting money into savings can start developing positive habits from a young age. 

Encourage your child to ask questions without repercussion in this setting. While you might not necessarily have all the answers, opening up a dialogue is a healthy way for your child to learn more about finance. 

5.       Use pocket money as an incentive for small tasks 

Using pocket money as an incentive to do chores around the house not only helps you, but it also helps your child learn more about the value of money and what it takes to earn it. Creating a simple plan with a set amount of money for different tasks, along with caps per week or month, is a great way to help your child start understanding where money comes from. 

6.       Use pocket money to teach children how to save 

Alongside teaching children the relationship between work and money, household chores and pocket money is also a great opportunity to show children how to save. If your child has shown interest in a more expensive purchase, you could set them up with an old-fashioned piggy bank where they can ‘deposit’ their earnings or chart for them to fill out so they can track how much money they have.  

7.       Reward them by learning about interest 

Paying small amounts of interest on the money your child has saved is a helpful way to encourage them to keep saving. Older children will be delighted to learn that the interest they earned last week can be used to earn more interest if they save until next week. 

8.       Use trips to the shop to learn about saving vs. spending 

Another practical way to teach a child about the benefits of saving is by visiting shops. Allow them full control of their own money on the understanding that if they don’t have enough they won’t be able to borrow any more. The more they feel in control of their own finances, the more they will be able to make sensible decisions when it comes to spending or saving. 

9.       Use digital tools with older children 

There are a whole range of online tools for teaching older children about online banking and using cards for payments. One of the leading products on the market is GoHenry, which is suitable for those aged six and up, costs £2.99 a month and allows parents to set strict spending limits, monitor what their kids are buying and where they are spending their money. 

10.   Teach older children about selling old toys for extra money 

If you don’t want to give your child pocket money, teaching them about ways to earn money for themselves is a helpful alternative. 

When they’re old enough, you could ask your child to go through their old toys, books and clothes and set aside which ones they’d like to sell.

You can then sell these on their behalf through online auction sites such as eBay or Facebook Marketplace. Not only is this a great way for your child to feel independent in earning their own money, it presents an opportunity to also discuss how to use the internet safely. 

Salman Haqqi, personal finance expert from money.co.uk, speaks about why teaching children how to handle money from a young age is so beneficial. 

“Creating an environment in which you are able to speak more openly with your children about your financial decisions is vital to engaging them from a young age on the value of money. Showing them how to make choices when shopping will set up good habits and understanding of managing money. 

“It’s important to make sure your lessons are age-appropriate and that you continue to involve and teach your children about money as they grow. A healthy relationship with finances starts at a young age, and children learn most of their habits from their parents.” 

https://www.money.co.uk/share-dealing.htm