Money-conscious mums favour loyalty cards
Mums are more likely to use loyalty cards to make their money stretch further than the average Brit, research has found.
They will also set a weekly or monthly budget, regularly visit websites to find the best deal and buy and sell items secondhand, according to an online survey by Standard Life.
Three-fifths (60%) of mums claim they actively use loyalty cards to buy goods so that they can get items for free. More than half (52%) also go online to use price comparison and voucher code websites to find the best deals.
While only 39% of dads actively use their loyalty cards, they have similar attitudes to spending cash and running up credit card debt, with 53% of dads saying they don't like to do this (compared with 57% of mums).
Meanwhile, dads are much more clued up about the interest rate they're getting on their savings. Only 48% of mums said they knew what interest rate their bank or building society was paying them, compared with 60% of dads.
Be smarter with saving
Julie Hutchison, personal finance expert at Standard Life, says: "It makes sense for mums to be using up their loyalty points to keep costs down, particularly just now, when summer holidays can easily stretch budgets. What better time to make sure points aren't going to waste and maybe even use some to help cover back to school costs, too?
"But while mums are clearly being smarter than dads with their spending, there is still plenty of room to be smarter with saving. Mums need to make sure they get the best interest rates on their savings, or they really are losing out. And they should be thinking about how they could use the New Isa to make their money grow. It could make a significant difference to their future savings and spending power if they start investing for the longer term now."
Standard Life's tips to help make your money go further
- Check how much loyalty cash you've built up and make sure you use it to cut down spending.
- Look out for all the free family events this summer such as festivals, workshops and days out.
- Check if you or your partner's employer offers a childcare voucher scheme, as these can help with the cost of nursery fees and can ultimately save a family hundreds of pounds. Some of these vouchers can also be used on other clubs and activities during the summer holidays.
- Visit comparison sites and look for voucher/discount codes before you buy. You could also use price scanner apps on your phone to see if an item is cheaper somewhere nearby.
- Take time to check if you're getting a good interest rate on your savings accounts
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.
Used by the holder to buy goods and services, credit cards also have a monthly or annual spending limit, which may be raised or lowered depending on the creditworthiness of the cardholder. But unlike charge cards, borrowers aren’t forced to pay the balance off in full every month and, as long as they make a stated minimum payment, can carry a balance from one month to the next, generating compound interest. As the issuing company is effectively giving you a short-term loan, most credit cards have variable and relatively high interest rates. Allowing the interest to compound for too long may result in dire financial straits.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.