We’re taking a deeper look into tailored strategies for diverse households, particularly those most at risk of financial exclusion.
So far, we have explored financial resilience and how to become financially savvy in a more general way. However, we know that different households will have different priorities when it comes to financial management. So today, we’re taking a deeper look into tailored strategies for diverse households, particularly those most at risk of financial exclusion.
This includes single-parent families grappling with the demands of caregiving and income generation, individuals living alone and stretching their finances, and the financially vulnerable facing heightened economic challenges.
Single-parent households
More than 15% of families in the UK are run by a single-parent. It’s no surprise that putting the whole financial responsibility on one adult can cause significant strain. But here are some tips could help money go further for lone parents:
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Craft a detailed budget that covers your income and expenditures
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Use benefit checkers to ensure you’re getting all the support you’re eligible for
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If possible, apply for child maintenance from the other parent
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Explore additional financial support through grants and aids for child-related expenses
For more detailed advice, check out our blog: Financial management for single-parent households
People living alone
Living alone presents a unique set of financial challenges, primarily the need to cover all housing costs, utilities, and living expenses single-handedly. Without the buffer of a second income or shared responsibilities, people living alone need savvy financial strategies to stretch their income further. Suggestions could include:
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Draft a clear budget that accounts for all your income and expenses
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Consider ways to reduce housing costs, or make extra money by renting out spaces
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Compare service providers for utility bills
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Make sure your home is well-insulated and uses energy-efficient bulbs, boilers, etc.
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Meal plan to reduce grocery bills
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Check and cancel recurring expenses like subscriptions
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Aim to save a portion of your income each month to build up an emergency fund
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Seek advice from financial advisors
Check out our blog, Financial management for people living alone, for more detailed advice on how to save more and spend less in lone-occupancy households.
Financially vulnerable
Financial vulnerability is not just about low income; it's about the inability to manage financial shocks or stresses effectively. This is exacerbated by the 'poverty premium,' where the less affluent end up paying more for basic goods and services – for example having to repeatedly buy cheaper, poor quality products instead of one good-quality but expensive alternative – which further entrenches their financial difficulties. Ways to improve this could be to:
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Consider open banking - a new way for people to manage their finances more effectively
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Avoid high-interest credit or loans
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Seek out community support organisations
Find out more in our blog, Financial management for the financially vulnerable.
Making the community we serve better off
At Great Western Credit Union, we are committed to uplifting and supporting our community of over 18,000 members, which extends across Bristol, Bath, Somerset, Dorset, Wiltshire, and Gloucestershire. Our membership comprises people from all walks of life and we are proud to serve our local people, businesses and economy.
In 2022 alone, we offered 1,100 loans to individuals in the bottom 20% of areas by levels of deprivation. This initiative helped our members save over £500,000, money that would have otherwise gone to high-interest lenders. These figures are more than just numbers; they represent real-life stories of individuals and families who have found financial relief and a path toward stability through our services.
Our Money@Work scheme continues to grow significantly in scale and impact, helping employers across the region to improve the financial wellbeing of their people, through access to affordable loans and easy savings.
We believe in making finance more inclusive and accessible, ensuring that no one is left behind, especially those who may struggle to access traditional banking services. To find out more about our journey toward making a positive impact in our community, email us at info@gwcu.org.uk or visit https://greatwesterncu.org.
