Published on December 3rd, 2014 | by Pete0
Giving Your Kids the Best Chance in the Current Economy
While the government proclaims that the UK’s economy is on the up – growing 0.8% in the first quarter of 2014 alone, most ordinary working people are finding it difficult to make ends meet. What this means for families all across the UK is that it is now harder than ever to generate savings, to invest in the future and to provide for the next generation.
If you have children, it’s obvious that you want to provide for them as best as you can, but in the current economic climate that favors big business and doesn’t take care of the hard-working, normal individual as it should, you’ll have to take additional steps to ensure that you can give your children the best possible chance in today’s financial world.
As such, in this article, we explore what’s making it so hard for ordinary people to save, the repercussions this is having on families across the UK, and provide some practical solutions to the financial problem that families up and down the country are facing.
Difficult Times for Ordinary, Hardworking People
Although the UK’s economy is said to be growing, life for ordinary hardworking people up and down the UK is difficult. With London producing roughly 1/5 jobs in England, and people from all over the world flocking to the capital to seek a better quality of life, people outside of the South East of England are arguably being left behind.
We can see this best in terms of property prices. In Brixton, for example, property prices in the last 5 years have increased by a massive 30% – the highest increase in the UK. Meanwhile, property prices in the north of England mostly stagnate.
What this amounts to, is regional economies where ordinary people are finding it hard to meet basic demands for themselves and their families, while ordinary people in London are forced out of their homes to make way for the young professionals who are taking their places.
The results of all of this “brushing under the rug” of ordinary people is that families are finding it more challenging to meet their basic needs, such as supporting their children. With universities now able to charge fees of up to £9,000 per year, young adults are now being saddled with significant amounts of debt, after university, many of them are now returning home to their parents.
According to figures from the Office for National Statistics found here on Different Money, up to 26% of adults aged 20 to 34 are now living back at home with their parents – that’s around 3.3 million adults in the UK, an increase of a quarter over the figure from 1996.
Obviously, this places relatively high amounts of pressure on parents to look after their kids for years to come, so what can parents do to make it easier for their kids to fly the nest?
Some Practical Advice
Although children technically before adults at the age of 18, in today’s world where universities charge high fees and unpaid intern work is the norm, parents have to support their kids for longer. But the question is, how do you do that when you’re budgeting on a shoestring?
The answer, unsurprisingly, is not easily. However, if you play the long game, you can make life that little bit more manageable for your children. For example, saving some money while they’re at school means you can pay some of their university accommodation rent. This means they’ll come out of university that little bit better off, and hopefully in a better position to move out into their own place, rather than come back home and be a burden to you.
Ultimately, when the economy is set up to favor people at the top of the economic spectrum, it’s difficult to see how you can even begin to help other members of your family, but if you use a little bit of forward planning, you can at least make a start.