The meaning of money
Gerard Lemos
Why money matters
Security
Status
The root of all evil?
Freedom
Financial capability
1. Manage money: ‘make ends meet’ and keep track of
finances
2. Plan ahead: deal with financial commitments in the
future
3. Choose products: select and purchase financial
products appropriately
4. Stay informed: keep abreast of changes to products
and the economy
Only a minority of people are capable in all 4 domains.
Financial Services Authority
This research
Our aims:
• Gain first-hand insight from vulnerable people
• Develop a framework for understanding
• Consider how support can be improved
Our method:
• Action research with support workers
• 63 service users completed questionnaires
Partnership with Thames Reach and with support from Esmée Fairbairn Foundation.
Attitudes, experiences and behaviour
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Acceptance of not having much money
Hostility to money
‘Just getting by’
Coping well for now
Overcoming problems in the past
Shopping around and getting a good deal
Impulsive expenditure
Mixed blessings of family and friends
Reluctance to ask for return of loans
Attitudes, experiences and behaviour (2)
“I would love to have more money. I know it wouldn’t solve all my
problems, but it would make things better. I wouldn’t be stuck here in
this flat in this situation. I’d have more choice about where I lived. I’d
have more choice in life.”
“I’m just getting by, I’m not good with money and I find I can’t save.
Money sliips through my fingers” (male, 47)
“When I was on the streets I saved some money even then. I didn’t
spend it all. I bought my friends drinks...Now I’ve got so much saved I
don’t know what to do with it. [If I had less money] I’d make it last. It
wouldn’t be a problem.” (female, 38)
Financial problems now and in the past
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Problems with benefit administration
Family conflict
Mental health
Alcohol and drugs
Exploitation of vulnerable people
Savings, borrowing and debt
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Saving for a ‘rainy day’
A desire to save
‘Living for today’
Debt
Savings, borrowing and debt (2)
“It’s very important I think, it’s good to save. What if something breaks
and it needs replacing? When my TV broke my sister had to lend me the
£150 to repair it and then I paid her back. Though I think it’s good to
save, it’s easier said than done in practice.”
“I don’t save money. I’m disorganised and always in debt. I spend more
than comes in therefore I’m always playing catch up and behind constantly.
I’ve never been in control even when working.” (male, 60)
“I’ve been in debt pretty much my whole adult life. I moved to London in
2001 and on JSA. I got into debt straightaway by spending money
frequently...My current situation has improved since I went to debt advice
services. Other people are helping me. My brother is paying off a lot...my
boyfriend is paying too.”
Using money to meet aspirations
• Modest, everyday wishes for security and
permanence
• Less money might make people look for a job
• Managing money for personal achievements
• Desire for gadgets
• More money to improve family relationships
• Aspiring to property ownership
• Long-term financial goals
Using money to meet aspirations (2)
“I’d like to make improvements to my flat and have a nice holiday. Make
sure all my bills are paid. Have a nice social life”
“I’d buy a house in Birmingham where my boyfriend lives and think
about opening a shop ion Nigeria, where he’s from originally.”
“I would visit my son and spend the day together at the seaside maybe,
have a meal or buy my son some clothes. I’d put some of it in my son’s
account and have driving lessons” (male, 45)
Conclusions
The stereotypes don’t match reality:
• Some people are coping well with money
• People rely on friends and family and help
them out in return
• Many had problems with money due to
addictions, health problems or conflicts.
Conclusions (2)
In the future people want:
• A life free from debt
• A secure life
• The means to earn respect from friends and
family
• To meet short term goals for homeliness and
comfort
• To meet personal goals and ambitions
• The feeling of freedom
What can support workers do?
• Day-to-day budgeting and money management –
not just welfare benefits
• Overcoming financial problems, particularly debt
• Setting short-term goals and making financial
plans (e.g. saving for clothes or household items)
• Setting long-term personal ambitions
(e.g. holidays, flats or reconnecting with family)
• Managing disappointment and not losing heart
• Improving confidence in using financial products