Savings Culture Matters.

What we know

Being able to manage your money is more important in the current economic climate than it has ever been. The average household debt in the UK is £8,480 (excluding mortgages). This figure increases to £16,307 if the average is based on the number of households who actually have some form of unsecured loan.

A sudden change in circumstances has led to many people facing financial difficulties for the first time, or for already fragile finances to suddenly worsen. Without access to information on managing personal finances, there can be confusion over where to start when faced with the challenges of budget management. For those on low incomes, who are often outside the mainstream banking system, options are limited, making them vulnerable to loan sharks and other unscrupulous lenders. The 'coping classes' are typically taking the brunt of this recession.

What we are doing

We have two strands of practical activity; to prepare the next generation for the working environment before they enter it and then to support the current working generation when they are working. We also have partnerships which are helping us to understand the way that socially motivated finance is developing.

• The Money Money Money programme has educated 1,200 Year 10 pupils, helping them to understand their attitude to saving and the impact this could have on their future.
• We have funded Credit Union marketing campaigns in the South East, helping them to communicate with half a million hard to reach consumers.
• Our Banks and Building Societies division are working with A4e in their delivery of Money Guidance Advice to 800,000 consumers over the next five years.
• We have continued to support Angela Gould from King's College London. This has delivered Maths in Schools programmes to 27,000, pupils and teachers since the programme started.
• In 2010 our workplace savings business launched the Cash Family Challenges. These are practical tools designed to help large employers educate their workforce on coping with recession-backed decisions but also keep an eye on retirement savings.
• We have consulted with key organisations such as Social Finance, Tridos and Alquity to help us to understand the development and 'retailisation' of socially motivated finance markets and social impact bonds.

Looking forward

We will continue to follow our approach of education and influence. The lack of available money in the recession has reconfigured the way that consumers are accessing advice and finance. We feel that it is better to be engaged with new emerging experts than simply observing as an outsider. Therefore, in 2011, we are looking to:

• Roll out the Money, Money, Money programme to a further 2,000 young people, educating them on all aspects of personal finance and looking for opportunities to further involve Financial Advisors and Industry bodies to give this greater impact.
• Further expand our Maths in Schools programme to cover more teacher meetings and activity days in schools and in particular to cover special needs education as an area which is likely to be a target for government cuts in education spend.
• Work with SurreySave, a new Credit Union that will offer an ethical savings and loans financial service for the whole of Surrey to complement the work we already do with East and West Sussex Credit Unions.
• Work alongside A4e in terms of training and facilities support for their Money Guidance contract.