Managing money - Barclays Money Skills

We have been working in partnership with Barclays for almost six years now, delivering a range of programmes focused on improving financial capability and life chances for thousands of vulnerable young people and their families.

Reaching out

Through Barclays Money Skills we're extending our partnership to benefit more than 2,500 of the hardest to reach young people. The

programme will reach a range of Action for Children young people and families including:

• Young parents in Children's Centres who are struggling on a tight budget
• Young people in youth clubs and training centres needing general money management advice to prepare them for work
• Young people in hostels and care services who are getting ready to manage their own tenancy for the first time

Barclays volunteers support the sessions, bringing their expertise to help young people learn how to get started with topics like budgeting, managing bank accounts and making informed financial decisions. We look forward to continuing our work and making a positive difference to the lives of thousands of young people across the UK.

Helping people manage their money

The Barclays Money Skills toolkit will help people:

• Identify things they can do to improve their financial situation; such as understanding where they spend their money, making a budget plan, and think about how they manage borrowing and debt
• Learn about financial products and language in order to make the right choices about, for example, opening a bank or credit union account, or understanding the range of bill payment methods and savings choices
• Increase their confidence about financial planning by encouraging them to build on the skills they already have and apply them to their finances.

Why do people need money skills?

The financial landscape has changed; it has become increasingly difficult to operate a cash only household economy, and most people now have a bank account that gives access to other financial services. There are more financial products on the market, and a greater expectation that people will make their own choices.

Making good financial decisions is an essential life skill and people on low incomes can least afford to get it wrong. There is a real risk that in the current financial climate poor families will face increasing problems, and even more families will fall into debt. Money worries affect parents' capacity to cope, increase the likelihood of divorce, house moves, and mental health problems and can have a huge impact on their children.

Young people have been singled out by HM Treasury as particularly financially unaware. NEET researchers (Source: FSA 2006) found that young adults typically:

• lacked the knowledge and understanding to open bank accounts
• did not know how to explore and compare different deals on mobile phones or credit
• did not know where and how to access emergency funds
• lacked knowledge and experience in paying household bills.

Developing financial capability not only shapes young people's spending habits but can also enhance their life chances, prepare them for independent living and encourage vital social skills.

Case Study: Matt

Matt, 19, volunteered to take part in the Barclays Money Skills project because he was in debt and was having a lot of trouble with his finances. He has been having one on one Barclays Money Skills sessions with project workers for the last five weeks, and has found the course really useful as he wants to get out of debt as soon as he can. Matt found the learning to budget section the most helpful part of the programme, because before starting Barclays Money Skills he openly admitted he couldn't budget properly which in turn led to debt.

He said: "I started (Barclays Money Skills) because I had a lot of money problems with debt and being on a low income. I was terrible with my finances and I couldn't budget properly which got me into more debt."

Since taking part in Barclays Money Skills, Matt has developed a more positive attitude towards money and managing it more effectively. He has also learnt the importance of saving - as a direct result of taking part in the Barclays Money Skills programme, Matt has opened up a savings account.

"It (the course) has been very useful and I have already made changes to paying off my debts in a way that leaves me enough money to last me the week. Before the course I struggled to pay my debts and never had enough money to live on. I feel that I am more in control of my money and less stressed. I do not feel under pressure as I did before as I am making regular weekly payments, saving money in my savings account which I opened as a result of the course and I still have enough money each week to live."

Case study: Sean

Sean is 16 years old and has been attending the Barclays Money Skills group training course for 4 weeks. He will shortly be moving into subsidised employment. Sean is currently in the process of moving into supported living accommodation where he will gradually be assuming responsibility for paying bills, furnishing his flat and providing meals for himself.

He said: "I've never really had to think about budgeting before now but the sessions I've been in have really helped me to see how important it is. I'll start my job soon and because of what I've learnt on the Barclays Money Skills course, I've made a spending plan, so I know what cash I have for food, travel, bills and my social life."

Sean is determined to stay clear of bad debt. He now understands the importance of living within his means: "Before taking part in the money skills sessions, I wasn't aware of the differences in bank accounts and the consequences of banking charges. I don't want to end up with a bad credit file and debts I can't afford to pay."