THE first full week of the new school term is done. Children and parents are wrecked this weekend. Getting back to the grind is tiring. We make many promises to ourselves during the first week of term, some of which are not academic in nature.
One such promise that I made myself on a regular basis was to start saving. I still haven’t worked out what exactly I was saving for. Perhaps it was that ‘rainy day’ I heard most adults in my life refer to on a regular basis.
We had a ‘bank’ at primary school which opened each Wednesday and I made a small deposit most weeks, thanks to the generosity of my grandparents.
From an early age, I knew that saving was important but, like most people, I found it very difficult to do. Extra cash burned a hole in my pocket. Even if I did use the many piggy banks I had down through the years, including my beloved Henry the Hippo, I always managed to prise them open and spend whatever money I had – mostly on sweets!
I have battled with saving money ever since.
This week is savings week. Thirty four per cent of people in the north don’t save on a regular basis. Seventy two per cent of those who do not save say that they don't have any extra money to put into savings. Of the adults who do save regularly, the average monthly saving is £50-£100 – which accrues between £600 and £1,200 each year.
£50 doesn’t sound like much, but it’s a lot if you don’t have it. I have never found managing money to be an easy task. Going to university and having to manage my finances gave me a good grounding, but the art of saving, being wise with money, has been a daily work in progress since.
The rainy day versus living in the now. What constitutes a necessary spend of money as opposed to a luxury? Does wanting everything immediately starve us of the satisfaction of having saved up for something over a period of time?
I went to university more than 20 years ago. This was my first time living away from home and it was my first experience of managing money. I tried to be responsible with what I had, and it was stressful. As children and teenagers, we naturally look to parents to provide for us. Having to provide for yourself is a different story altogether.
Everytime I came home, I cleared the cupboards and packed up as much food as I could to take with me to college. The freezer in Galway was always full. My actions definitely saved me money and gave me peace of mind each week, and an appreciation of the simple things in life.
When I started working, earning a salary, that was a whole different ball game. I wasn’t used to having money at all, and now that I had more disposable income, all I wanted to do was spend it, and I did. That’s everyone’s experience, isn’t it?
Recently, I stumbled upon Alex Jones and Steph McGovern’s BBC 1 programme Shop Well for Less. For some reason – partially because I am getting older and might finally be a little wiser with money – this programme drew me in. I found myself asking more questions about the decisions I make when I am shopping and deciding whether or not I really need a particular item.
It’s not easy to be like this all the time but I’m trying and I have noticed that I have more disposable income as a result of this thought process. Can deciding to spend money more carefully be considered the same as ‘saving’?
I know people who can account for every penny of monthly expenditure, because they put all their monthly outgoings on a spread sheet. Others start saving for Christmas in June and make sure to book a holiday well in advance so that they bag a great bargain on price. Some people I know move their debt from credit card to credit card month after month to ensure 0 per cent interest. I can’t see myself ever being that organised.
The subject of money is a bit like religion and politics. We tend to avoid talking about it. We’re funny about it. Perhaps ‘Savings Week’ might encourage some to have a rethink, and re-engage with the piggy bank.
(The Consumer Council and The Progressive Building Society have partnered to present Savings Week – see theprogressive.com/northern-ireland-savings-week.)
