When money has a male face

When Winston Churchill was accused of being drunk by Bessie Braddock he is alleged to have replied,  “And you, Bessie, are ugly. But I shall be sober in the morning, and you will still be ugly”.

What a charmer. I bet Bessie wasn’t one of Winston’s greatest fans. Nor, were she still alive, would be Elizabeth Fry. For as the only female historical figure to feature on an English banknote, she has just been bumped off the £5 note by the former PM.

Quick quiz then. Do you know which leading figures feature on the following English bank notes?

1. The £10 note

2. The £20 note

3. The £50 note (old style)

4. The £50 note (new style)

Scroll down for the answers*.

Currently the £5 pound note depicts Elizabeth Fry reading to prisoners in Newgate Prison. From 2016 she will be replaced by Winston Churchill, giving every note a male face.

Feminist campaigner Caroline Criado-Perez has attacked the Bank of England for failing to eliminate gender discrimination under the Equalities act. Her solicitors have written to the Bank threatening court action and they have two weeks in which to respond. It’ll be interesting to see how they wiggle out of this.

Is this further confirmation that the money world is dominated by men? 

Which female figure would you like to see on an English bank note? I'm sure Maggie Thatcher might prove a popular though controversial figure, and I think Blue Peter presenter Valerie Singleton is a strong contender. 

*

The £10 note shows Charles Darwin, a hummingbird and HMS Beagle

The £20 note has Adam Smith, with an illustration of 'The division of labour in pin manufacturing'

The old style £50 notes feature Sir John Houblon and his house in Threadneedle Street. The new style £50 notes show Matthew Boulton and James Watt, with steam engine and Boulton's Soho.

Where’s a safe haven for your money?

Simonne gives some wise advice about savings:

We all want to sleep soundly knowing our money's safe....

The world’s stock markets continue to take up too many column inches, and it’s difficult not to worry about how your investments will weather the financial storm. 

So where do you stash your cash when there’s such turmoil the world over?

Investing in stocks and shares still makes sense if you’re happy to put away your money for the long term – in financial speak, that means at least 5 years, preferably longer. One approach to reduce the risk is to drip your money in over a period of months, rather than investing a lump sum and hoping for the best. If you’re worried about the recent turmoil in stock markets, watch this episode of Meaningful Money, with Pete Matthews offering sound advice.

But what if you don’t want to tie up your money for that long? 

Or you’re looking for less risk? Savings accounts are one way to go, but with interest rates so low what other options are there? Here’s are some:

Fixed Interest Savings Accounts If you’re prepared to tie up your cash savings for a fixed term like three, four or five years, you’re likely to get better returns than from ordinary instant-access savings accounts. The Money Advice Service offers some guidelines about getting the most from your savings accounts.

Social Lending This is a peer-to-peer arrangement, so you’ll be lending to individuals rather than to conventional institutions such as banks. The aim is to get a better rate than you would with a bank, but with that comes extra risk. The companies that manage this type of lending are not currently regulated by the Financial Services Authority (FSA) and your capital isn’t protected by the Financial Services Compensation Scheme, as it would be with an authorised firm. But there are methods used to control and minimise the risk to lenders. So you’ll need to weigh up the chance of a higher rate of interest with the increased risk and lower protection. Popular social lending sites include Zopa, RateSetter and Quakle. The Consumers Association, Which?, has a good review of some of the main social lending sites.

Inflation-proofed savings National Savings Certificates used to provide a guaranteed, tax-free interest above inflation and were in great demand, but sadly the door closed to new business early last month. Since then we’ve seen a few banks/building societies offering something similar, including the Post Office. But these accounts aren’t backed by the government and interest earned above inflation is taxable. However, if you hold no more than £85,000 in any one banking institution, your savings are protected by the Financial Services Compensation Scheme. And they offer a fixed rate of interest above inflation. The accounts currently available tie up your money for a fixed term. A good review of the current selection of savings accounts linked to inflation can be found on SavvyWoman, Sarah Pennell’s, website.

Regular savings accounts If you can commit to save a fixed amount for a fixed term - usually 12 months - there are better rates around, as much as 8% a year, compared to say 3% in a high-interest account. Savings may be limited to £250 per month, though, and you might not be able to access to your money for the whole fixed term. Moneysupermarket is one of a number of comparison sites, which help you weigh up different regular savings accounts currently on the market.

If you’ve got a lump sum of cash to deposit, you could make use of a regular savings account. Run one alongside a high interest savings account, making a monthly transfer from the high interest account to regular savings account, which should increase your overall return.

Structured products have increased in popularity since the credit crunch. They’re usually promoted as a safe way of investing money where you benefit from the upside of the stock market without risking the downside. Typically, your money is tied up for five or six years. At maturity, you get a proportion of the stock market return over that term, and your money back if the stock market has fallen. But be careful, and take time to read the small print. The ‘capital guarantee’ (the getting your money back bit) usually applies only if the market hasn’t fallen below a certain level. This means that if markets fall dramatically, you could lose a big chunk of your original investment. The product may also be backed by different organisations and if the sponsor goes bust, you could lose all your money. Moneyweek’s video warns about their risks.

If you want more advice on savings and some financial coaching, see Simonne's website.

Weirder than fiction!

If you wonder what really led to the economic crash of 2008 then I urge you go and see Inside Job, the film directed by Charles Ferguson.

It starts with a chilling re-run of the events in the decade leading up to the crisis and then exposes the recklessness, corruption and utter denial of those who let it happen, and even profited from it.

“Inside Job was well received by film critics who praised its pacing, research and explanation of complex material.”

It’s straight-talking, it’s fact and it’s scarier than fiction.

You couldn’t make it up.

10 easy money actions for the financially challenged

...or the financial phobic.

None of these are scary. Or difficult.  But they could make a huge difference to your financial health.

Decide how many of them you will tick off this year: 

1.    Get on-line banking (if you haven’t already). Stick a weekly reminder in your diary to check your statement. Marvel at (or bemoan) where the money goes. Tackle leaks.

2.    Charity shop. Devise a whole new image based on charity shop finds. You can always restyle or dye stuff. Fashion victim = financial failure.

3.    Perform some plastic surgery. Cut up credit cards and just use cash. Slash and burn store cards, show them no mercy.

4.    Learn about compound interest. It’s how investments grow and why debts go ballistic. Spend 5 minutes getting to grips with it here. Feel immediately enlightened. Smug even.

5.    Sweep some money into a savings account. Every month. Do it by direct debit. You won’t miss it going out but you’ll love it piling up.

6.    Ask someone for money. Now. Nag your boss for a rise. Call in debts. Haggle for a discount on your next purchase. Take something back, demand a refund.

7.    Make kids earn money. Stop being their cash cow. Make them get a job or sell old toys on eBay. Threaten to charge them rent. If they’re over 18 charge them rent. Be less tough on toddlers.

8.    Deal with credit card debt. Transfer to a 0% interest card. If your savings earn less interest than you’re paying on your card, use them to pay off the debt.

9.    Play the long game. Give your future self a gift. Boost pension payments (or start one). Over-pay on the mortgage. Take out a 5 or 10 year high-interest investment.

10.  Stem the flow of wasted money. Unused gym memberships. Forgotten magazine subscriptions. Thirsty cars. Taxi/takeaway/smoking/alcohol habits. Put what you save into a separate account, just for you.

How satisfied with life are you?

A recent study showed that more women are highly satisfied with life in general than men. Modern life is complicated for everybody, but women tend to have better coping strategies than men. For example, women are more likely than men to go to their GP if life gets them down. They are also better at getting connected to people and seeking support from family and friends. Being more optimistic and less competitive, women are better able to restore themselves to a happy state.

The study also showed that, of all the things in life that women would like to improve,  a healthy level of savings, clearing debts and paying off the mortgage ranked highly. Men also placed importance on such financial improvements, indicating that both men and women want more control over their money and that today’s life aspirations focus on better financial planning and preparation for the future.  

The strong link between financial health and mental well-being revealed by the survey is really important. Our sense of well-being is closely tied to our financial stability and if this is threatened we suffer feelings of insecurity. Women rate their financial aspirations highly because being debt-free and financially stable makes them feel secure and more in control.

The research was commissioned by first direct  because, “As a bank that has customer satisfaction at its heart, we wanted to understand the level of satisfaction and happiness across the UK." Nice to know a bank cares about its customers' satisfaction.