0:00:02 > 0:00:04Whether you're a spender or a saver,
0:00:04 > 0:00:07we could all do with knowing how to make the most of our cash.
0:00:08 > 0:00:12So, we've found simple advice for you to do just that
0:00:12 > 0:00:17and taken it to towns and cities right across Britain.
0:00:17 > 0:00:19Whatever help you need with your finances,
0:00:19 > 0:00:22we are Right On The Money.
0:00:22 > 0:00:25Hello, and welcome to Right On The Money,
0:00:25 > 0:00:27the show that helps you free up cash
0:00:27 > 0:00:30by making simple changes to what you spend.
0:00:30 > 0:00:32And today, we are in the city of steel,
0:00:32 > 0:00:35Sheffield, which, despite its industrial heritage,
0:00:35 > 0:00:38is actually one of the greenest places in the UK.
0:00:38 > 0:00:40And with all our advice,
0:00:40 > 0:00:43saving you money will be a walk in the park, too.
0:00:43 > 0:00:44Here's what's coming up.
0:00:45 > 0:00:50We help a cash-strapped pensioner save for the holiday of a lifetime.
0:00:50 > 0:00:53The problem is the amount she's spending on this little one.
0:00:55 > 0:00:59I don't think I've ever looked in such detail at my finances,
0:00:59 > 0:01:02which is perhaps a bad reflection on me.
0:01:02 > 0:01:04I'm hoping that I'll be a lot more aware
0:01:04 > 0:01:06after this of what I'm spending my money on.
0:01:06 > 0:01:09And how you can lose the pounds while saving the pennies
0:01:09 > 0:01:11by keeping fit for free.
0:01:14 > 0:01:16I'll tell you what, Denise,
0:01:16 > 0:01:18you'd have to be pretty fit living in Sheffield.
0:01:18 > 0:01:20This place is built on seven hills.
0:01:20 > 0:01:22It's a good job they love their sport, then -
0:01:22 > 0:01:25athletics, football and, of course, snooker.
0:01:25 > 0:01:27Which is just as well because today,
0:01:27 > 0:01:30we're going to be trying to help out a local grandmother
0:01:30 > 0:01:32keep out of the red and into the black.
0:01:33 > 0:01:37When Michele Lefevre from Leeds retired four years ago,
0:01:37 > 0:01:40she was looking forward to a bit of peace and quiet,
0:01:40 > 0:01:43but that plan went to pot very quickly.
0:01:44 > 0:01:47Whoa. You can go really fast on that, can't you, hey?
0:01:48 > 0:01:51Michele gets to look after her granddaughter Anouska
0:01:51 > 0:01:54while the little girl's parents are at work.
0:01:54 > 0:01:57I had a year of freedom where I could do what I like,
0:01:57 > 0:02:00meet my friends for lunch, things like that,
0:02:00 > 0:02:02before a certain little person came along
0:02:02 > 0:02:07and I found myself looking after Anouska, as I do now.
0:02:07 > 0:02:09These days, Michele spends, on average,
0:02:09 > 0:02:12two days a week looking after Anouska.
0:02:12 > 0:02:15But it's not just her time she's spending.
0:02:15 > 0:02:17Thanks very much. Cheers. Thank you.
0:02:17 > 0:02:18Right, sit tight.
0:02:20 > 0:02:25It's £1.50, you know, but it's all those little £1.50s that add up,
0:02:25 > 0:02:26isn't it? But she loves it.
0:02:26 > 0:02:30You can't say no to a four-year-old, unfortunately.
0:02:30 > 0:02:34But her granddaughter isn't Michele's only expense.
0:02:34 > 0:02:37She and husband, John, love their holidays abroad.
0:02:40 > 0:02:43This is, yeah, top of the Eiffel Tower.
0:02:43 > 0:02:45Well, the deuxieme etage of the Eiffel Tower
0:02:45 > 0:02:48- cos you wouldn't go up to the top, would you, love?- No.
0:02:48 > 0:02:50There's a bit of an age gap between us.
0:02:50 > 0:02:53As old age looms nearer and nearer,
0:02:53 > 0:02:56you know, you just want to make the most of life.
0:02:57 > 0:03:00Michele's husband, John, works full-time,
0:03:00 > 0:03:03but the two have separate bank accounts, and most months,
0:03:03 > 0:03:07Michele uses up all her pension and has to dip into her savings
0:03:07 > 0:03:09to the point where they're almost gone.
0:03:09 > 0:03:11What worries me most about the future -
0:03:11 > 0:03:14just getting to the situation
0:03:14 > 0:03:18where my finances are getting out of control,
0:03:18 > 0:03:22not being able to afford to do the things that we want to do.
0:03:22 > 0:03:25And, again, you never know what's round the corner.
0:03:25 > 0:03:29You never know what big thing is going to be lurking,
0:03:29 > 0:03:33ready to spring out on you, that is going to require money.
0:03:33 > 0:03:36I don't want to dip in to my lump sum any more.
0:03:36 > 0:03:38I want it to be there, you know,
0:03:38 > 0:03:42to cushion me against anything that happens like that.
0:03:43 > 0:03:46With her cash cushion running out of stuffing,
0:03:46 > 0:03:49it seems that Michele needs a financial reupholster
0:03:49 > 0:03:52of the highest category, and fast.
0:03:52 > 0:03:55So, we sent in personal finance expert Sarah Pennells
0:03:55 > 0:03:58to see how Michele can keep enjoying her retirement
0:03:58 > 0:04:00without running out of cash.
0:04:01 > 0:04:05- Hello.- Hello. Hiya. Come in. - Nice to meet you. I'm Sarah.
0:04:05 > 0:04:07- I'm Michele. Do come in. - Thank you very much.
0:04:07 > 0:04:10Michele, as you know, I'm going to have a bit of a delve
0:04:10 > 0:04:11- into your finances.- I know.
0:04:11 > 0:04:13- Oh, God, yes, you are. - What do you have?
0:04:13 > 0:04:15What do you live on at the moment?
0:04:15 > 0:04:20My work pension is just over £1,000 a month.
0:04:20 > 0:04:24A bit more. About 1,200, perhaps. So, that is what I live on.
0:04:24 > 0:04:29I retired six years ago and I got a lump sum of £42,000,
0:04:29 > 0:04:32which, at the time, seemed wonderful,
0:04:32 > 0:04:38but then we bought a new car, had the back garden landscaped,
0:04:38 > 0:04:43we had some nice holidays and it's kind of just drifted away.
0:04:43 > 0:04:45So, I've got just under 1,000 left.
0:04:45 > 0:04:47- OK. Wow. - THEY LAUGH
0:04:49 > 0:04:50Wow indeed.
0:04:50 > 0:04:53With almost no money left from Michele's lump sum,
0:04:53 > 0:04:56Sarah's got her work cut out.
0:04:56 > 0:05:00Do you feel in control of your money at the moment?
0:05:00 > 0:05:04Not entirely, I have to confess. The money goes in on
0:05:04 > 0:05:06the 16th of every month and I think, "Great. I've been paid again.
0:05:06 > 0:05:08"My pension's gone through. That's fine."
0:05:08 > 0:05:10And I don't really think that much about it
0:05:10 > 0:05:13until it gets near the end of the month and I think, "Ooh,
0:05:13 > 0:05:15"God, I've overspent again.
0:05:15 > 0:05:18"I shouldn't have done this and I shouldn't have done that."
0:05:18 > 0:05:22So, I do kind of feel, sometimes, it's slipping away from me.
0:05:22 > 0:05:26So, what's important to you in your retirement?
0:05:26 > 0:05:28Holidays are very important.
0:05:28 > 0:05:30You know, we're planning to go to Venice next year
0:05:30 > 0:05:32and that's going to be expensive.
0:05:32 > 0:05:34Things that aren't really important to me -
0:05:34 > 0:05:37I'm really not materialistic at all, so, as I say,
0:05:37 > 0:05:40it's not things that are important. It's enjoying...
0:05:40 > 0:05:44John and I enjoying ourselves and having fun while we can.
0:05:46 > 0:05:49So, with a trip to Venice for Michele and John the goal,
0:05:49 > 0:05:54Sarah gets to work and soon hones in on an area ripe for a saving -
0:05:54 > 0:05:57Michele's broadband and telephone bill.
0:05:57 > 0:06:01So, I just popped your postcode into one of the price comparison sites.
0:06:01 > 0:06:03- Mm-hm.- But I have found a deal.
0:06:03 > 0:06:06- Right.- It's a bit slower than your current broadband,
0:06:06 > 0:06:07but there's not that much in it,
0:06:07 > 0:06:10and it does give you the weekend and evening calls
0:06:10 > 0:06:13- you're currently getting as part of the package.- Right.
0:06:13 > 0:06:16- You're currently paying £57. - 57. Right.
0:06:16 > 0:06:19So, that's an immediate saving of £22.50 per month.
0:06:19 > 0:06:21- Right, OK. That sounds good, yeah.- Sorted.
0:06:21 > 0:06:23That goes straight into your Venice fund.
0:06:23 > 0:06:25Right, that sounds good to me.
0:06:26 > 0:06:29£22.50 a month comes to
0:06:29 > 0:06:32a chunky saving of £270 a year.
0:06:32 > 0:06:35But those gondola trips don't come cheap,
0:06:35 > 0:06:38so Sarah needs to find some more savings elsewhere.
0:06:38 > 0:06:40Shall I go and put the kettle on?
0:06:40 > 0:06:42- Perfect. Great stuff. Thank you.- Right, OK.
0:06:44 > 0:06:47Michele's work pension is just over £1,000 a month,
0:06:47 > 0:06:49so while she brews a cuppa,
0:06:49 > 0:06:52Sarah's scrutinising her bank statements
0:06:52 > 0:06:54to see where that money's going.
0:06:54 > 0:06:58I don't think I've ever looked in such detail at my finances,
0:06:58 > 0:07:01which is perhaps a bad reflection on me.
0:07:01 > 0:07:03I'm hoping that I'll be a lot more aware,
0:07:03 > 0:07:05after this, of what I'm spending my money on.
0:07:07 > 0:07:10Well, we certainly know one thing you spend your money on, Michele,
0:07:10 > 0:07:13and right on cue, here she is.
0:07:13 > 0:07:15- Hello.- Are you going to say hello?
0:07:15 > 0:07:18Have you got some brownie? It looks delicious.
0:07:18 > 0:07:21Are you going to go home with chocolate all round your mouth?
0:07:21 > 0:07:22What's your mummy going to say?
0:07:22 > 0:07:26With Michele and Anouska cosily plumped up on their favourite chair,
0:07:26 > 0:07:30it's time to hear Sarah's analysis of Michele's bank statements.
0:07:30 > 0:07:33I bet that makes a change from watching Peppa Pig.
0:07:33 > 0:07:38I was just looking at when you take money out of your account
0:07:38 > 0:07:39by the cash machine.
0:07:39 > 0:07:42And so, basically, again, over quite a short period,
0:07:42 > 0:07:46- you'd taken out sort of about £150, I think.- Yeah.
0:07:46 > 0:07:49I wondered whether you were aware that you did this.
0:07:49 > 0:07:53Erm, yes, I think is the answer. Where do they go?
0:07:53 > 0:07:57Cos that's what I lose track of, more than anything.
0:07:57 > 0:08:01- I have something that I think might help you.- Ooh, right. OK.
0:08:01 > 0:08:02It's a magic book.
0:08:02 > 0:08:05- Ooh, I like the idea of that. - MICHELE LAUGHS
0:08:05 > 0:08:09- Basically, I'd like you to keep a spending diary.- Oh, OK. Yeah.
0:08:09 > 0:08:11- Every time you spend some money...- Right.
0:08:11 > 0:08:15- ..write down how much you spend... - Right.- ..what you spend it on.
0:08:15 > 0:08:17It can be a real revelation.
0:08:17 > 0:08:20Do you know, I occasionally do a food diary
0:08:20 > 0:08:21cos I go to a slimming class,
0:08:21 > 0:08:23and it's a very similar thing to that,
0:08:23 > 0:08:26- so that's quite interesting. - It's exactly the same,
0:08:26 > 0:08:30and I guarantee that once you start writing it down,
0:08:30 > 0:08:32there will be things that you discover
0:08:32 > 0:08:35you've been spending money on that you probably didn't even notice.
0:08:35 > 0:08:38Right, thank you. I shall definitely do that.
0:08:38 > 0:08:42But Sarah's about to find out that there is a reason
0:08:42 > 0:08:45why Michele's been spending like there's no tomorrow.
0:08:45 > 0:08:49Well, I had breast cancer a few years ago - about ten years ago -
0:08:49 > 0:08:53which, although I didn't think it'd change my attitude to life,
0:08:53 > 0:08:55gradually, it's made me think, "Well, you know,
0:08:55 > 0:08:57"you might as well spend it now cos you can't take it with you."
0:08:57 > 0:09:00So, maybe there's a bit of that involved as well.
0:09:00 > 0:09:04I think that, having been through something like breast cancer,
0:09:04 > 0:09:06it wouldn't be at all surprising
0:09:06 > 0:09:10if that has changed your attitude to money as well as life in general.
0:09:10 > 0:09:13- Yeah.- But I would like to really sort of have a bit of a look
0:09:13 > 0:09:16in some depth and to try and change some of those habits.
0:09:16 > 0:09:18- Yes.- Just shifting them.
0:09:18 > 0:09:20- And it's not to say that money is not for spending...- Yeah.
0:09:20 > 0:09:23..but it's trying to work out whether we can change those habits
0:09:23 > 0:09:26- you may not even realise you've gotten into.- Yes, yeah.
0:09:27 > 0:09:31One area where Michele could cut some of her outgoings
0:09:31 > 0:09:34is the costs of looking after Anouska.
0:09:34 > 0:09:39I think it's pretty hard to think of your grandchild as being an expense,
0:09:39 > 0:09:41but I'm going to be brutal about it.
0:09:41 > 0:09:44I think we do need to look at all of your expenditure.
0:09:44 > 0:09:47You're spending a lot of time looking after Anouska
0:09:47 > 0:09:48and I'm guessing more money as well.
0:09:48 > 0:09:52I think I must spend - trying to add it up, logically -
0:09:52 > 0:09:55about £20 to £30 a week on Anouska.
0:09:56 > 0:10:00Over a month, that comes to about a tenth of her income,
0:10:00 > 0:10:02but Michele is not alone.
0:10:02 > 0:10:05She's one of the 9.2 million UK grandparents
0:10:05 > 0:10:08providing childcare for their grandkids.
0:10:08 > 0:10:11And with the average cost of a childminder in the UK
0:10:11 > 0:10:14rising by 5.1% last year,
0:10:14 > 0:10:18Michele's daughter is getting a very good deal.
0:10:18 > 0:10:21And I know your daughter Sacha does pay you.
0:10:21 > 0:10:23What does she pay you for the childcare?
0:10:23 > 0:10:25She pays me £80 a month.
0:10:25 > 0:10:28Could you ask Sacha for any more money?
0:10:28 > 0:10:30I wouldn't like to, to be honest,
0:10:30 > 0:10:33because I think she gives me what she can afford.
0:10:33 > 0:10:36And, you know, they're a young couple and they're struggling,
0:10:36 > 0:10:40so, yeah, I wouldn't like to do that. We've all been there.
0:10:40 > 0:10:43Looks like Sarah will have a hard time persuading Michele
0:10:43 > 0:10:46to accept any more from her daughter.
0:10:46 > 0:10:49If you can't ask Sacha for more, and I understand why...
0:10:49 > 0:10:53- Yeah.- ..then, instead, we'll just have a look at what you spend...
0:10:53 > 0:10:56- Right.- ..and making sure that you get the most value
0:10:56 > 0:10:58- from every single pound you spend...- Right.
0:10:58 > 0:11:00- ..on the time you have with Anouska. - Sounds good.
0:11:00 > 0:11:03- Shall we go and play?- Yes. - THEY LAUGH
0:11:03 > 0:11:07Later in the programme, we'll see there are plenty more ways
0:11:07 > 0:11:09Michele can bring down what she spends,
0:11:09 > 0:11:12and we'll see how anyone looking after children
0:11:12 > 0:11:14can bring the cost right down.
0:11:20 > 0:11:23And Michele will be joining us later to tell us how she got on.
0:11:23 > 0:11:25Personal finance expert Simon Read is with us.
0:11:25 > 0:11:28Simon, we gave Michele a spending diary.
0:11:28 > 0:11:30Is that something we should all be doing?
0:11:30 > 0:11:32- Is it a useful tool? - It really is a useful tool.
0:11:32 > 0:11:34I've done it myself and I was very surprised
0:11:34 > 0:11:38how much money I'd wasted that I hadn't even realised I'd spent.
0:11:38 > 0:11:40You know, even if you do it for a week, it's an eye-opener
0:11:40 > 0:11:43to where your money's disappearing.
0:11:43 > 0:11:45Now, Michele, like most people, is using her overdraft.
0:11:45 > 0:11:47Because it's there, they think it's OK to use it,
0:11:47 > 0:11:50when, really, it should be a buffer for emergencies.
0:11:50 > 0:11:51I think you're exactly right.
0:11:51 > 0:11:54An overdraft going into the red should only be used
0:11:54 > 0:11:58if you really are in an emergency if you need the cash.
0:11:58 > 0:11:59Too many people get in a habit
0:11:59 > 0:12:01of falling into overdrafts every month because it's there.
0:12:01 > 0:12:04And that's a really bad habit to get into, isn't it?
0:12:04 > 0:12:05It's not just a bad habit,
0:12:05 > 0:12:07it's a costly one because they will get charged...
0:12:07 > 0:12:10You know, there's all sorts of fees that can come in.
0:12:10 > 0:12:12If they really are going to go into their overdraft every month,
0:12:12 > 0:12:15they should find an account that has lower fees
0:12:15 > 0:12:18or has a buffer with no charges up to, say, £100.
0:12:18 > 0:12:20You know what's really surprised me the most?
0:12:20 > 0:12:22In an age where there's so much technology -
0:12:22 > 0:12:26online banking, people are using banking apps on their phone -
0:12:26 > 0:12:29and they still have no clue what their bank balance is.
0:12:29 > 0:12:32Two thirds of people don't know what their bank balance is,
0:12:32 > 0:12:34but even more scary and frightening is the fact
0:12:34 > 0:12:37that only a quarter of people know how much debt they've got.
0:12:37 > 0:12:39If you don't know how much debt you've got,
0:12:39 > 0:12:40there's no way of controlling it.
0:12:40 > 0:12:43The first step of getting clear of debt
0:12:43 > 0:12:47is admitting to it and trying to find ways of clearing it.
0:12:47 > 0:12:50- There's a lesson there for all of us.- Thanks, Simon.
0:12:50 > 0:12:52Now, I tell you what - we should go round this lovely market stall
0:12:52 > 0:12:54and just find out how many people out there
0:12:54 > 0:12:57have actually got a clue what's in their account.
0:12:57 > 0:12:59All right, then. Come on. Thanks, Simon.
0:13:05 > 0:13:07- Can we just ask you a couple of questions?- Yes.
0:13:07 > 0:13:11- Online banking.- Yes. - Are you into it? Do you do it?
0:13:11 > 0:13:14Well, I do it, but I have to ring my daughter.
0:13:14 > 0:13:16She does it for me cos I have to ask her.
0:13:16 > 0:13:19- Do you know what's in your account right now?- Yeah.
0:13:19 > 0:13:22- To the nearest what? - Erm, to the nearest 50.
0:13:22 > 0:13:25- The nearest 50?- Yeah. - That's pretty accurate, I'd say.
0:13:25 > 0:13:28If I was to ask you what your bank balance is today,
0:13:28 > 0:13:30- would you have an idea?- Er, roughly.
0:13:30 > 0:13:34I'd like to say within 50 quid, but don't quote me on that.
0:13:34 > 0:13:36- How often do you go overdrawn? - Maybe not every...
0:13:36 > 0:13:39- Be honest.- Well, being honest, yeah.
0:13:39 > 0:13:41THEY LAUGH Exactly.
0:13:41 > 0:13:44That's obviously quite an expensive habit to get into.
0:13:44 > 0:13:47Do you know how much it's costing you to use that overdraft?
0:13:47 > 0:13:51- I don't, actually, no.- You don't? - Couldn't even hazard a guess?
0:13:51 > 0:13:53I thought I knew a lot, but I don't, do I?
0:13:53 > 0:13:58- Do you go overdrawn? - Erm, I used to a lot,
0:13:58 > 0:14:01which was not good, but now I don't as much, so...
0:14:01 > 0:14:05- What's changed?- Like, I used to just completely lose track of everything,
0:14:05 > 0:14:07never checked cos I was always too ashamed to check, I guess.
0:14:07 > 0:14:09When you say ashamed,
0:14:09 > 0:14:11you mean you stopped checking your bank balance...
0:14:11 > 0:14:14- Yeah.- ..because you knew you were going overdrawn?- Yeah, basically.
0:14:14 > 0:14:16SHE LAUGHS
0:14:18 > 0:14:20I need a sit down right now, Denise,
0:14:20 > 0:14:22because I'm worn out after all that running around.
0:14:22 > 0:14:24But then, of course, I'm not as fit as you, am I?
0:14:24 > 0:14:27Well, you could be because here are some nice and easy tips
0:14:27 > 0:14:30on how to get fit without spending any money.
0:14:33 > 0:14:35Four years ago, I was lucky enough
0:14:35 > 0:14:38to be here at the Queen Elizabeth Olympic Park
0:14:38 > 0:14:41to witness many of Team GB's sporting triumphs.
0:14:41 > 0:14:44The Games inspired people across the country
0:14:44 > 0:14:47to get out there and be more active,
0:14:47 > 0:14:49but keeping up your fitness long-term
0:14:49 > 0:14:52can be a bit of a challenge, especially if you're on a budget.
0:14:54 > 0:14:56With monthly gym fees typically costing
0:14:56 > 0:14:59anything between £15 and £60,
0:14:59 > 0:15:04it's easy to see why many people put exercise on the back burner.
0:15:04 > 0:15:07But, in fact, there are numerous ways you can keep fit
0:15:07 > 0:15:09without paying a penny.
0:15:09 > 0:15:12The most obvious one is to go for a run
0:15:12 > 0:15:15and Will Innes is one of thousands of Brits
0:15:15 > 0:15:19using their local green spaces to stay in shape.
0:15:19 > 0:15:22So, what do you love about running outdoors?
0:15:22 > 0:15:25I love being out in the fresh air
0:15:25 > 0:15:30and I find that running just helps me clear my mind.
0:15:30 > 0:15:32I just don't like the atmosphere in gyms
0:15:32 > 0:15:35and gym memberships are expensive.
0:15:35 > 0:15:36- Race?- Come on, then.
0:15:38 > 0:15:43But running's not the only way to get fit for free in your local park.
0:15:43 > 0:15:47Councils all over the UK are investing in fitness machines
0:15:47 > 0:15:51in public outdoor spaces that are free and easy to use.
0:15:52 > 0:15:54Taking full advantage of the facilities
0:15:54 > 0:15:56on his doorstep is Bill Jourdan.
0:15:58 > 0:16:01How often do you use this outdoor machinery?
0:16:01 > 0:16:05As often as I can. I live round the corner so it's quite practical.
0:16:05 > 0:16:07There's a lot of variety.
0:16:07 > 0:16:09A lot of the machines do different things, so...
0:16:09 > 0:16:12It's pretty easy to fit around work. Just come down whenever I can.
0:16:12 > 0:16:15- Excellent. How are you getting on with your reps?- Good.
0:16:16 > 0:16:20- How are you?- This is easy. - Step it up.- Step it up.
0:16:20 > 0:16:23- Faster?- Put some effort into it.
0:16:23 > 0:16:27Recent research found that doing half an hour's exercise
0:16:27 > 0:16:32five times a week can reduce your chance of illness by a third.
0:16:32 > 0:16:36But one in four of us don't even manage 30 minutes a month.
0:16:36 > 0:16:39That's why, since the London Olympics,
0:16:39 > 0:16:41Sport England has had a real push
0:16:41 > 0:16:45at finding ways to get more people active.
0:16:45 > 0:16:48There's been massive investment since 2012.
0:16:48 > 0:16:50We at Sport England have invested
0:16:50 > 0:16:53over a billion into grassroots sport.
0:16:53 > 0:16:57That's paying for coaches, come-and-have-a-go sessions,
0:16:57 > 0:16:59fixing facilities at local clubs.
0:17:01 > 0:17:04And one post-Olympic promise made good
0:17:04 > 0:17:06has been the introduction of free swimming
0:17:06 > 0:17:12for under-16s and over-60s at many council-run pools across the UK.
0:17:12 > 0:17:14It's a move enthusiastically welcomed
0:17:14 > 0:17:17by Manchester swimmer Brian Melling.
0:17:18 > 0:17:21Instead of being sat in the house on their own,
0:17:21 > 0:17:26OAPs come out and meet friends, so it's big that way.
0:17:26 > 0:17:30Also, it's good for the health and you can come here free.
0:17:30 > 0:17:34Quite honestly, it makes a big difference.
0:17:34 > 0:17:36It really does.
0:17:36 > 0:17:38It's worth contacting your local authority
0:17:38 > 0:17:43to find out what free fitness options are available in your area,
0:17:43 > 0:17:47and you could find a lot more choice than you expected.
0:17:47 > 0:17:50You might have assumed that joining any exercise class
0:17:50 > 0:17:53would mean you have to pay for it, but not always.
0:17:53 > 0:17:56Sometimes, you can get those for free, too.
0:17:57 > 0:18:02Decathlete Born Barikor runs 150 hours of free classes every week
0:18:02 > 0:18:04in London parks.
0:18:04 > 0:18:06And keeping fit isn't the only benefit.
0:18:06 > 0:18:08There's a social side, too.
0:18:09 > 0:18:11Born, this is such a great idea.
0:18:11 > 0:18:14What inspired you to put on these free classes?
0:18:14 > 0:18:16I felt kind of, in my community,
0:18:16 > 0:18:19it would be great to have access to not only high-quality exercise,
0:18:19 > 0:18:21but in local parks and local settings, really.
0:18:21 > 0:18:24That inspired me to get out there and get funding to set this up.
0:18:24 > 0:18:26So, what are the benefits for the community?
0:18:26 > 0:18:29The social aspect is, for me, phenomenal.
0:18:29 > 0:18:31So, for us, it's the benefits of not only getting fit for free,
0:18:31 > 0:18:34but meeting local community and turning up to tone up.
0:18:38 > 0:18:40So, why do you come to these outdoor classes?
0:18:40 > 0:18:44It's just a good way to meet people and get fit, really.
0:18:44 > 0:18:45I mean, it's a little bit different
0:18:45 > 0:18:50and probably, from what I can see, better than going to a gym.
0:18:51 > 0:18:52Oh, definitely.
0:18:53 > 0:18:58So, it's like, you know, building a community, getting exercise...
0:18:58 > 0:19:00- Yes.- ..and having fun, I guess...
0:19:00 > 0:19:03- Yeah.- ..even though some of these are a little bit hard!
0:19:06 > 0:19:09SHE PANTS
0:19:09 > 0:19:11That was tough, but really enjoyable,
0:19:11 > 0:19:14but the best part of it is that it's free.
0:19:15 > 0:19:18One exercise that can sometimes feel more like a bank breaker
0:19:18 > 0:19:21than a body bender is yoga.
0:19:21 > 0:19:26A single class typically costs around a tenner, but even here,
0:19:26 > 0:19:30a growing number of studios offer a yoga fix at a reduced cost,
0:19:30 > 0:19:33or, in some cases, completely free.
0:19:33 > 0:19:34This one is in London,
0:19:34 > 0:19:37but we've seen others in Manchester, Birmingham,
0:19:37 > 0:19:38Glasgow and Wales.
0:19:40 > 0:19:43Lots of people pay a lot of money to do this sort of class.
0:19:43 > 0:19:46Why have you gone for the free option?
0:19:46 > 0:19:49Well, we do, obviously, run our usual full-price classes as well.
0:19:49 > 0:19:50We have a really busy timetable,
0:19:50 > 0:19:54but we just felt there were maybe a whole section of the community
0:19:54 > 0:19:57that just weren't able to practise due to the cost.
0:19:57 > 0:19:59We wanted to put these on so that everyone can join in
0:19:59 > 0:20:03and enjoy the benefits of yoga, really.
0:20:04 > 0:20:08A quick internet search revealed lots of other free activities
0:20:08 > 0:20:12ranging from cycling to military fitness classes.
0:20:12 > 0:20:15So, a bit of research and some get-up-and-go
0:20:15 > 0:20:18should help you get fit for free in your area, too.
0:20:21 > 0:20:25The best thing about today is that it hasn't cost me a penny.
0:20:25 > 0:20:27The total price has been zero.
0:20:27 > 0:20:29So, if you're using those high gym prices
0:20:29 > 0:20:33as a reason for not getting out and about, no more excuses.
0:20:33 > 0:20:37You can stretch your muscles without stretching your finances.
0:20:39 > 0:20:42Good work, Denise. Looks like there's no excuse for the rest of us
0:20:42 > 0:20:43to avoid getting in shape.
0:20:43 > 0:20:47But while we may not all be sporty, we do all have some sort of skill,
0:20:47 > 0:20:50and those skills could be an easy way to help other people
0:20:50 > 0:20:53and save yourself some dosh.
0:20:53 > 0:20:54It's called skill swapping
0:20:54 > 0:20:57and websites are becoming increasingly popular around the UK.
0:20:57 > 0:21:01Now, Ruth here, she runs a community-based one in Derby,
0:21:01 > 0:21:05and also with us is Pam, who's been skill swapping for 20 years.
0:21:05 > 0:21:07Ruth, I'm going to come to you first
0:21:07 > 0:21:10- cos you're pretty good at gardening, aren't you?- That's what I offer.
0:21:10 > 0:21:13Describe skill swapping to me. Why is it so important?
0:21:13 > 0:21:16It's a way of building community and it's a way of saving money.
0:21:16 > 0:21:19With the credits that I've earned from gardening,
0:21:19 > 0:21:22I got somebody to fix my computer.
0:21:23 > 0:21:26Now, I don't know how much it would cost to have a computer fixed.
0:21:26 > 0:21:28- Probably £60, £70.- Easily, yeah.
0:21:28 > 0:21:30It's something I could not do myself,
0:21:30 > 0:21:32but I looked in the directory.
0:21:32 > 0:21:35"Right, who does computers? Ah, John does computers.
0:21:35 > 0:21:36"Right, I'll give John a ring."
0:21:36 > 0:21:41John came round, fixed my computer and thank you very much.
0:21:41 > 0:21:43And then he earns credits from doing that.
0:21:43 > 0:21:45You know, I paid him the credits
0:21:45 > 0:21:48and then he can then spend his credits on whatever he wants to do.
0:21:48 > 0:21:52Can I ask you, have you ever had somebody skill swap with you
0:21:52 > 0:21:55and you've been unhappy with what they've actually delivered?
0:21:55 > 0:21:59To a certain extent, I have. Yeah, it has happened a little bit,
0:21:59 > 0:22:02but not anything that you've had to sort of go back to them and...
0:22:02 > 0:22:06- How did you handle the situation? - How did I handle the situation?
0:22:06 > 0:22:11I probably wouldn't ask them again to do that sort of job.
0:22:11 > 0:22:14- Put it down to experience?- Yes. - But, actually, what we find
0:22:14 > 0:22:17is that because we're quite a close-knit group,
0:22:17 > 0:22:21if anybody did do a job which wasn't up to scratch,
0:22:21 > 0:22:26- you would kind of feel able to say something.- Yeah.
0:22:26 > 0:22:27What would you say to anybody watching this
0:22:27 > 0:22:31who might be interested in joining one of these skill swapping sets?
0:22:31 > 0:22:32I'd say go for it.
0:22:32 > 0:22:35You know, find out if there is one in their area.
0:22:36 > 0:22:39Because one thing a lot of people worry about
0:22:39 > 0:22:41is that they haven't got anything to offer
0:22:41 > 0:22:42and, actually, what we've found
0:22:42 > 0:22:45is that everybody has got something they can offer,
0:22:45 > 0:22:48whether it's just waiting in for a parcel
0:22:48 > 0:22:52or, you know, if you've got a car, you can offer lifts.
0:22:52 > 0:22:54Anybody can do dog walking.
0:22:54 > 0:22:57You know, everybody's got something they can offer.
0:22:57 > 0:23:00So, there's a good community spirit that's built up.
0:23:00 > 0:23:02You get to know all your neighbours, which, actually,
0:23:02 > 0:23:05there's a nice bit of bantering and bartering there, isn't it?
0:23:05 > 0:23:07Yeah, and the nice thing, actually,
0:23:07 > 0:23:10is that everybody's time is worth the same amount.
0:23:10 > 0:23:13It doesn't matter whether you're offering gardening, massage,
0:23:13 > 0:23:15if you're offering something very skilled
0:23:15 > 0:23:18- like car maintenance or fixing a computer.- OK.
0:23:18 > 0:23:21The general rule is it's four credits an hour
0:23:21 > 0:23:22and it doesn't matter what...
0:23:22 > 0:23:24You know, if you're offering legal advice
0:23:24 > 0:23:26or if you're fixing somebody's drains,
0:23:26 > 0:23:28- everybody's time is worth the same. - It's the old cliche -
0:23:28 > 0:23:31scratching each other's backs, isn't it? You scratch their backs,
0:23:31 > 0:23:33they scratch your backs - everybody's happy.
0:23:33 > 0:23:35It's been lovely chatting to you two.
0:23:35 > 0:23:38I'm really quite enlightened by it all, actually.
0:23:38 > 0:23:42Thanks, Dom. Now, we all love a bargain, and, of course,
0:23:42 > 0:23:45if you shop around wisely, you can save yourself a packet.
0:23:45 > 0:23:48Here's a bunch of people who reckon they're pretty good
0:23:48 > 0:23:50at hunting down the best deals.
0:23:54 > 0:23:57Oh, yes. Bargains are it.
0:23:57 > 0:24:00It's quite good at the moment cos most of the shops have bargains.
0:24:00 > 0:24:01There's no thrill in shopping
0:24:01 > 0:24:04if you're going to buy something that's at its normal price.
0:24:04 > 0:24:07But if you get a bargain, I'm literally going home skipping,
0:24:07 > 0:24:09happy, telling everybody I got a bargain. Love it.
0:24:09 > 0:24:11- Oh, you should get a buzz.- Yeah.
0:24:11 > 0:24:14- Get a buzz if you...- A good buzz. - ..get a bargain.- Yeah.
0:24:14 > 0:24:17No, no, it frustrates me. Can't stand it.
0:24:17 > 0:24:20No, I'd rather just go into a shop and see what I like
0:24:20 > 0:24:21and get it there and then.
0:24:21 > 0:24:24I can't stand going through clothes. I don't like it.
0:24:24 > 0:24:27When the sale's on, if I go back and it's what I want
0:24:27 > 0:24:30and it's at a good price, I'll pay it then.
0:24:30 > 0:24:34I paid £5 for an old TV.
0:24:34 > 0:24:38I think it was 1940s.
0:24:38 > 0:24:40I think it's probably worth about five, six grand now.
0:24:40 > 0:24:43I won't buy anything unless I can get a student discount
0:24:43 > 0:24:46or find it half-price cos I'm very poor, so...
0:24:46 > 0:24:49- She is very poor. - I am very, very poor.
0:24:49 > 0:24:51I think, yeah, definitely in this country,
0:24:51 > 0:24:54bargain hunting is a bit of a sport and we're really good at it.
0:24:54 > 0:24:56If it was an Olympic event,
0:24:56 > 0:24:59I think we'd come gold every year for bargain shopping.
0:25:02 > 0:25:05Retail expert Clare Rayner is with me.
0:25:05 > 0:25:07Clare, when I go shopping and get a bargain,
0:25:07 > 0:25:09it's a huge adrenaline rush.
0:25:09 > 0:25:11I love it. Is there anything wrong with that?
0:25:11 > 0:25:13No, not at all. I think, actually,
0:25:13 > 0:25:15that's one of the techniques retailers use
0:25:15 > 0:25:17to encourage people to spend more -
0:25:17 > 0:25:19making things look like a brilliant bargain,
0:25:19 > 0:25:21giving them a limited amount of stock,
0:25:21 > 0:25:23creating some sense of urgency,
0:25:23 > 0:25:25almost a bit of a competition against other shoppers
0:25:25 > 0:25:26to bag that bargain.
0:25:26 > 0:25:28I think that's a strategy used
0:25:28 > 0:25:31to encourage us to go out and spend more.
0:25:31 > 0:25:32Well, I guess if you are spending more
0:25:32 > 0:25:35and the thrill becomes getting that bargain
0:25:35 > 0:25:37as opposed to what you've actually bought,
0:25:37 > 0:25:39then that's a bit of an issue.
0:25:39 > 0:25:42Yes, it can be, and I think some people do get a little bit caught up
0:25:42 > 0:25:44in the excitement of getting the bargain.
0:25:44 > 0:25:46Maybe they don't stop and ask themselves,
0:25:46 > 0:25:49"Would I have bought this product had it been full price?
0:25:49 > 0:25:51"Am I actually getting a bargain
0:25:51 > 0:25:53"or am I buying stuff that I don't really need,
0:25:53 > 0:25:55"which means that I'm not saving money,
0:25:55 > 0:25:56"I'm spending money?"
0:25:56 > 0:25:58I guess it can be a combination of factors.
0:25:58 > 0:26:00Like, when I'm with my girlfriends and we go shopping,
0:26:00 > 0:26:02I end up spending much more.
0:26:02 > 0:26:04Yes, and I think that's the problem is that you egg each other on
0:26:04 > 0:26:07and you're all feeling like you've won the bargains
0:26:07 > 0:26:09and you want to come home with your prized purchases
0:26:09 > 0:26:13and feel like you've got an achievement out of the shopping day.
0:26:13 > 0:26:16And that can sort of take you into that realms of overspending
0:26:16 > 0:26:18and buying stuff that you don't need.
0:26:18 > 0:26:20I mean, everybody's on sale all the time
0:26:20 > 0:26:21and now we're creating sale events,
0:26:21 > 0:26:23like Black Friday's come over from the USA.
0:26:23 > 0:26:26- Ah! I loathe it. - In the last three years,
0:26:26 > 0:26:27it's gone from nothing
0:26:27 > 0:26:31to a huge amount of sales happening all on that one day.
0:26:31 > 0:26:33And, actually, it became Black Friday Week,
0:26:33 > 0:26:35so, obviously, the retailers are leveraging our hunger
0:26:35 > 0:26:38to bag a deal and using these strategies
0:26:38 > 0:26:41- to get us to spend more money. - So, Clare, what's your top tip
0:26:41 > 0:26:43for bagging a bargain without breaking the bank?
0:26:43 > 0:26:45I think it's to not get carried away.
0:26:45 > 0:26:48Just because something is heavily discounted
0:26:48 > 0:26:50doesn't mean you need it or want it.
0:26:50 > 0:26:51And it doesn't necessarily mean
0:26:51 > 0:26:54that the original price was actually a fair price.
0:26:54 > 0:26:56So, make sure you've done your research
0:26:56 > 0:26:58and you know what the product should cost
0:26:58 > 0:27:00and you can work out what you're really saving.
0:27:00 > 0:27:03Plus, if you're spending money, you're spending money.
0:27:03 > 0:27:05You're not saving money, no matter how big the discount.
0:27:05 > 0:27:07Great. Thanks, Clare.
0:27:07 > 0:27:09Now, earlier, we met local grandmother Michele
0:27:09 > 0:27:12who couldn't stop spending on her gorgeous granddaughter.
0:27:12 > 0:27:16Trouble is, that's put a big strain on her own finances.
0:27:16 > 0:27:20Let's see how anyone looking after kids can save some cash.
0:27:22 > 0:27:25Michele Lefevre is a gran with a plan -
0:27:25 > 0:27:27to enjoy a stress-free retirement
0:27:27 > 0:27:30and go on holiday with husband, John.
0:27:31 > 0:27:35Well, the big aim is, next year, to go to Venice by train.
0:27:35 > 0:27:37We'll find a nice hotel or a guesthouse
0:27:37 > 0:27:41and just explore Venice. That's what we really want to do.
0:27:41 > 0:27:44Trouble is, looking after granddaughter Anouska
0:27:44 > 0:27:45two days a week
0:27:45 > 0:27:49is one reason why Michele's savings are dwindling fast.
0:27:49 > 0:27:52You can't say no to a four-year-old, unfortunately.
0:27:53 > 0:27:57So, we've drafted in personal finance expert Sarah Pennells.
0:27:57 > 0:28:00She's already tackled Michele's telecoms
0:28:00 > 0:28:03and challenged her to get a better grip on what she spends
0:28:03 > 0:28:05by writing it all down.
0:28:05 > 0:28:08A week later and Sarah's back to see how that's panning out.
0:28:10 > 0:28:12Now, Michele, last time I was with you,
0:28:12 > 0:28:16I gave you a bit of homework - gave you a spending diary to keep.
0:28:16 > 0:28:19- You did indeed.- How have you been getting on with that?
0:28:19 > 0:28:22I've been filling it in religiously. I've been very good about it.
0:28:22 > 0:28:25So, you have. You've written down to the penny.
0:28:25 > 0:28:27- Yeah.- A lot of the things, they're under a tenner,
0:28:27 > 0:28:30but you were surprised at how it added up.
0:28:30 > 0:28:32I really was surprised.
0:28:32 > 0:28:36It's no wonder I'm overdrawn at the end of each month, basically.
0:28:36 > 0:28:38So, what I had planned to do
0:28:38 > 0:28:41is go through all the things that I've spent money on
0:28:41 > 0:28:44and have a good look and just think, "What could I have done without?"
0:28:44 > 0:28:46But you are going to carry on keeping a spending diary
0:28:46 > 0:28:50- for a few more weeks, are you? - I think I am, actually. Definitely.
0:28:51 > 0:28:53Sarah's come across a big expense
0:28:53 > 0:28:55by going through Michele's direct debits -
0:28:55 > 0:28:58a dental plan which gives free yearly checkups.
0:28:58 > 0:29:01Now, we're all for taking care of your gnashers,
0:29:01 > 0:29:03but at almost £50 a month,
0:29:03 > 0:29:07this particular plan is biting off quite a chunk of Michele's budget.
0:29:07 > 0:29:10I think it is one of those things where, you know,
0:29:10 > 0:29:13- you really do have to put your own finances first.- Yeah, yeah.
0:29:13 > 0:29:17And £46 a month is quite a big chunk of money, isn't it?
0:29:17 > 0:29:19It is. It's a big saving, yeah.
0:29:20 > 0:29:22An occasional clear-out of your direct debits
0:29:22 > 0:29:25really can pay dividends, and in this case,
0:29:25 > 0:29:29it's spurred Michele into not just cancelling the plan,
0:29:29 > 0:29:32but also finding a cheaper NHS dentist.
0:29:32 > 0:29:34So, actually, what you're thinking of doing now, then,
0:29:34 > 0:29:36is stopping the dental treatment plan...
0:29:36 > 0:29:38- Yeah.- ..and switching dentists
0:29:38 > 0:29:40so you don't have to pay private costs either.
0:29:40 > 0:29:42Yeah, I think I'll have to do.
0:29:42 > 0:29:45I feel a bit disloyal,
0:29:45 > 0:29:48but then I think, "Well, you know, it's my money."
0:29:48 > 0:29:51And he's a dentist. He makes lots of money, so, sorry!
0:29:51 > 0:29:54And it's not anybody else's money. You know, it's still your money.
0:29:54 > 0:29:57It's just you're putting it aside for either when you need it
0:29:57 > 0:30:02- or for your fantastic holiday in Venice.- Yes. Yes, definitely.
0:30:03 > 0:30:06Michele's dream trip is inching even closer.
0:30:06 > 0:30:08Cancelling the dental plan
0:30:08 > 0:30:11will free up another £552 a year.
0:30:11 > 0:30:14It's been a productive morning at the soft play area,
0:30:14 > 0:30:16and though Michele hasn't realised,
0:30:16 > 0:30:19Sarah has even saved her money on coming here,
0:30:19 > 0:30:21by choosing the right time to come.
0:30:21 > 0:30:26- Here, today is grandparents' day. - Ah, right. I didn't know that.
0:30:26 > 0:30:29So, that means that you get half-price entrance.
0:30:29 > 0:30:33- So, instead of costing £4, it's £2.- Right.
0:30:33 > 0:30:38And loads of places have offers and discounts like these.
0:30:38 > 0:30:41- Really?- So, if you plan... - I didn't know that.- Absolutely.
0:30:41 > 0:30:45So, if you plan where you take Anouska and when you take her,
0:30:45 > 0:30:49the chances are that you can end up spending less than the full price
0:30:49 > 0:30:50and get a much better deal.
0:30:50 > 0:30:53A fiver a week here, a tenner a month,
0:30:53 > 0:30:56- £20, and it really will all add up.- Yeah.
0:30:57 > 0:30:59Simply by planning which day to soft play,
0:30:59 > 0:31:02Michele can save £10 a month.
0:31:02 > 0:31:04That's £120 a year.
0:31:04 > 0:31:06And soft play's not her only option.
0:31:06 > 0:31:09By tapping into other local resources,
0:31:09 > 0:31:13she could save even more while still keeping Anouska entertained.
0:31:13 > 0:31:16Take this place - a social enterprise in Leeds
0:31:16 > 0:31:20that is one of a growing number of its kind across the UK.
0:31:20 > 0:31:22For an annual fee of £6,
0:31:22 > 0:31:26Michele and Anouska can come and play as often as they like.
0:31:27 > 0:31:30- Lots of nooks and crannies. - Never get bored, would you?
0:31:30 > 0:31:33- You could spend hours in here. - No, too much stuff in here.
0:31:33 > 0:31:35- It's brilliant.- What's more,
0:31:35 > 0:31:38it sells waste materials from local businesses
0:31:38 > 0:31:41that can be used for crafting activities at home.
0:31:41 > 0:31:45Before she lets Anouska lose, Michele meets Laura Henry,
0:31:45 > 0:31:49an Early Years adviser to Ofsted and the government.
0:31:50 > 0:31:52So, Michele, tell me about the activities
0:31:52 > 0:31:57- and experiences that you carry out on a day-to-day basis.- Right.
0:31:57 > 0:31:58They're quite a long day.
0:31:58 > 0:32:02To sort of try and entertain a child in the house all day
0:32:02 > 0:32:06is quite tiring, so I sometimes take her to soft play places.
0:32:06 > 0:32:10I'm guessing that if Anouska was with a child carer
0:32:10 > 0:32:12where Sacha was paying a normal rate,
0:32:12 > 0:32:15they wouldn't be dipping into their pocket,
0:32:15 > 0:32:17- would they, to fund activities? - No. No, exactly.
0:32:17 > 0:32:22- So, what I think we need to start thinking is to change.- Right.
0:32:22 > 0:32:24So, it's like wearing a hat.
0:32:24 > 0:32:29So, on the two days that you're childminding,
0:32:29 > 0:32:31that you're looking after your granddaughter,
0:32:31 > 0:32:34that you become a child carer.
0:32:35 > 0:32:38With a bit of thought, the things Michele's buying today
0:32:38 > 0:32:41could keep Anouska entertained for weeks.
0:32:41 > 0:32:44- Here we are.- Thank you very much.
0:32:44 > 0:32:46We think it's about £13.20.
0:32:46 > 0:32:49I've been keeping a record as we've been going round.
0:32:49 > 0:32:51I believe I think it's a good investment
0:32:51 > 0:32:56because I think you pay the annual membership fee of £6
0:32:56 > 0:32:58and you can come here whenever throughout the year.
0:32:58 > 0:33:01But it's about the long-term investment,
0:33:01 > 0:33:02which will save you money.
0:33:02 > 0:33:06Yeah, I agree cos, I mean, this that we're getting here today,
0:33:06 > 0:33:09I reckon that's going to last us for several months, to be honest.
0:33:10 > 0:33:14Sarah's convinced that coming to places like this
0:33:14 > 0:33:17rather than relying on old favourites such as the soft play
0:33:17 > 0:33:20will quickly save Michele a bob or two.
0:33:21 > 0:33:24I know that you said you spend between £10 and £20 extra a week.
0:33:24 > 0:33:28- Mm-hm.- Now, if we can, say, save you £15...
0:33:28 > 0:33:32- Mm-hm.- ..every week - £60 a month.
0:33:32 > 0:33:34After a year, that's over £700.
0:33:34 > 0:33:36- Not to be sniffed at, is it? - No, not at all.
0:33:38 > 0:33:41Another £720 saved
0:33:41 > 0:33:43and there's still more where that came from.
0:33:43 > 0:33:45Back home, Laura introduces Michele
0:33:45 > 0:33:48to the website of the local toy library.
0:33:48 > 0:33:51So, the beauty of it is it's free.
0:33:51 > 0:33:55- Oh, right.- So, you can go along and Anouska can choose as many...
0:33:55 > 0:34:01- Wide selections of toys, materials, puzzles etc.- Yeah.
0:34:01 > 0:34:05Bring them home, play with them for about a week or so, or two weeks,
0:34:05 > 0:34:07then go back and then get a fresh set again.
0:34:07 > 0:34:09Amazing. That sounds brilliant, yeah.
0:34:10 > 0:34:12Borrowing toys rather than buying them
0:34:12 > 0:34:14will save Michele
0:34:14 > 0:34:16another £120 a year.
0:34:16 > 0:34:19And a quick search on your own council's website
0:34:19 > 0:34:24should point you in the direction of a toy library in your area, too.
0:34:24 > 0:34:27Michele's getting nearer to actually saving money
0:34:27 > 0:34:29on her childcare duties rather than losing it,
0:34:29 > 0:34:31but that's not good enough for Sarah,
0:34:31 > 0:34:34who's off to meet Michele's daughter Sacha.
0:34:34 > 0:34:36Now, Michele said she doesn't want to take
0:34:36 > 0:34:40any more money from Sacha, but Sarah's a tough cookie
0:34:40 > 0:34:43and she's determined to boost Michele's coffers.
0:34:43 > 0:34:44Sacha, I'll get straight to it.
0:34:44 > 0:34:47I want to have a bit of a chat with you about your mum
0:34:47 > 0:34:52and how much help she gives with you for looking after Anouska.
0:34:52 > 0:34:57I'm giving her £80 a month for looking after Anouska.
0:34:57 > 0:34:59And I know it's nowhere near as much
0:34:59 > 0:35:02as I would have paid out for childcare.
0:35:02 > 0:35:06But if you were to try and offer more money now,
0:35:06 > 0:35:08assuming you could afford it,
0:35:08 > 0:35:11- would your mum even accept it, do you think?- I don't know.
0:35:11 > 0:35:13We're still trying to build a life for ourselves
0:35:13 > 0:35:15and for Anouska as well.
0:35:15 > 0:35:18One idea might be to give Anouska a packed lunch.
0:35:18 > 0:35:22- Yeah.- In fact, to make something for your mum as well.- Yeah.
0:35:22 > 0:35:23So, when she spends time with her,
0:35:23 > 0:35:26she doesn't have to pay for that food. Would that be possible?
0:35:26 > 0:35:28Yeah, I'll definitely consider doing that.
0:35:28 > 0:35:30I mean, it's tough cos you've got your own life
0:35:30 > 0:35:33and you're working and you're busy, but a tenner a week -
0:35:33 > 0:35:35£500 at the end of the year.
0:35:35 > 0:35:38Yeah, that is a lot of money, isn't it? Yeah, yeah.
0:35:39 > 0:35:43What did I tell you? There ain't no stopping Sarah Pennells.
0:35:43 > 0:35:45Those sandwiches will save Michele
0:35:45 > 0:35:47another £520 a year,
0:35:47 > 0:35:50which means she could even make a little bit of money
0:35:50 > 0:35:52on her childcare duties.
0:35:52 > 0:35:55Now, I think that deserves a bit of a celebration, don't you?
0:35:58 > 0:36:00- Surprise!- Oh, hello.
0:36:00 > 0:36:02Now, I thought I might find you eating in here...
0:36:02 > 0:36:06- Really?- ..having a nice meal out. - Oh, no. There's no escape.
0:36:06 > 0:36:10Too right, Michele. Sarah's always on money-saving duty.
0:36:10 > 0:36:13So, what would you reckon you would spend
0:36:13 > 0:36:16in a month eating out?
0:36:16 > 0:36:19I don't know. Would you say about £100 a month, possibly?
0:36:19 > 0:36:20I think it might be.
0:36:20 > 0:36:22- Nearer 200, possibly. - SHE GASPS
0:36:22 > 0:36:25- Really?- Possibly. - No wonder I'm skint.
0:36:25 > 0:36:28- Now the truth's coming out.- Oh, it is, isn't it? Yes, I'm scared now.
0:36:28 > 0:36:32Is there any way we can get you to reduce that figure at all?
0:36:32 > 0:36:34Well, we did have a bit of talk about it.
0:36:34 > 0:36:36I mentioned it to John
0:36:36 > 0:36:38and, actually, he came up with quite a good idea.
0:36:38 > 0:36:41The friends that we eat out with regularly,
0:36:41 > 0:36:44you know, he said, "Well, maybe they'd like to alternate.
0:36:44 > 0:36:46"One week, we'll go out for a meal.
0:36:46 > 0:36:48"The next week, you know,
0:36:48 > 0:36:50"we'll go to their house or they'll come to us."
0:36:50 > 0:36:55So, you know, that way, we're going out less often to eat,
0:36:55 > 0:36:56but we're still enjoying...
0:36:56 > 0:37:00We're getting out of the house and we're enjoying the company
0:37:00 > 0:37:02and, you know, still having a good time, basically.
0:37:02 > 0:37:06I like your thinking, John. This is...this is great.
0:37:06 > 0:37:08Now, how much, roughly,
0:37:08 > 0:37:13do you think that doing it that way might save you over a month?
0:37:13 > 0:37:18Well, I think, like Michele says, possibly it'd half it and...
0:37:18 > 0:37:21- So, £100 a month?- Yeah, I think so.
0:37:21 > 0:37:23- Now we're talking, aren't we, Michele?- I know.
0:37:23 > 0:37:25- I know what you're going to say. - THEY LAUGH
0:37:25 > 0:37:28So, that's £1,200 over a year.
0:37:28 > 0:37:31- Where's it going? - Into the Venice fund.
0:37:31 > 0:37:33With another £1,200 a year saved,
0:37:33 > 0:37:35I think these two might be heading
0:37:35 > 0:37:40- for Venice sooner than they thought. - Oh, thank you.- This last saving,
0:37:40 > 0:37:45along with £1,480 less spent looking after Anouska,
0:37:45 > 0:37:50£552 saved by cancelling that direct debit dental plan
0:37:50 > 0:37:53and £270 on her broadband
0:37:53 > 0:37:58makes a grand total of £3,502.
0:37:58 > 0:38:01Before this experience, I don't think I really thought much
0:38:01 > 0:38:04about saving money towards our dream holiday
0:38:04 > 0:38:07cos it just didn't seem to be a possibility at all.
0:38:07 > 0:38:09But now, it seems achievable
0:38:09 > 0:38:12and I think I can do it and I'm looking forward to it.
0:38:12 > 0:38:16MUSIC: La Donna E Mobile by Verdi
0:38:16 > 0:38:20Well, Michele, Anouska and Simon are with us now.
0:38:20 > 0:38:23- Nice to meet you, Michele.- And you. - And, Anouska, high-five.
0:38:23 > 0:38:25- Hey! She's very good, isn't she? - She's good.
0:38:25 > 0:38:28Now, it's been a couple of months since Sarah's visit.
0:38:28 > 0:38:32- Have you managed to stick to Sarah's suggestions?- Pretty much, yes.
0:38:32 > 0:38:34Sarah's made lots of little suggestions
0:38:34 > 0:38:38that we're implementing and it's gradually sort of having
0:38:38 > 0:38:41a knock-on effect on what I'm spending.
0:38:41 > 0:38:44- Good.- And so many grandparents find themselves in this situation.
0:38:44 > 0:38:46- I mean, she's your only grandchild. - She is, yeah.
0:38:46 > 0:38:48You do want to give her treats,
0:38:48 > 0:38:51- but are you managing to curb that a little bit?- A little bit.
0:38:51 > 0:38:56Another suggestion that Sarah made was to use a toy library.
0:38:56 > 0:38:59- I've never heard of those. - Well, I've also -
0:38:59 > 0:39:03hot off the press - discovered that the Leeds Library Service
0:39:03 > 0:39:06is starting a toy library in a few months' time,
0:39:06 > 0:39:09- and that's just up the road. - Great idea.- So, that's ideal.
0:39:09 > 0:39:11I'll definitely be checking that out.
0:39:11 > 0:39:13Simon, I think there's a lot of grandparents around the country
0:39:13 > 0:39:16who can totally relate to Michele's scenario.
0:39:16 > 0:39:18- You're a huge help, obviously, to her parents...- Mm-hm.
0:39:18 > 0:39:21- ..but, financially, it's costing you a few quid.- It can do.
0:39:21 > 0:39:24If you're getting into financial difficulty, that's wrong.
0:39:24 > 0:39:27That's why I think it's important to actually sit down
0:39:27 > 0:39:30and talk to children about the money you're spending. Clear the air.
0:39:30 > 0:39:32You don't want to end up feeling a bit resentful
0:39:32 > 0:39:36- because you're, you know, helping your grandchildren.- Yeah.- So...
0:39:36 > 0:39:39And children would feel awful to think that their own parents
0:39:39 > 0:39:42were struggling just because they were spending too much.
0:39:42 > 0:39:45Would you have known about all these things going on
0:39:45 > 0:39:46had you not met Sarah?
0:39:46 > 0:39:48Certainly wouldn't have known about the toy library
0:39:48 > 0:39:51and the recycling place. They were new to me.
0:39:51 > 0:39:53And the sort of cheap grandparents' days
0:39:53 > 0:39:56at the soft plays. That was a new thing to me as well.
0:39:56 > 0:39:59That never occurred to me to even ask about it.
0:39:59 > 0:40:02So, yes, it's starting to make a difference to my finances,
0:40:02 > 0:40:04but it's a slow process, yeah.
0:40:04 > 0:40:07Now, you are in a perfect position - because you've tried it now -
0:40:07 > 0:40:10- to give advice to anybody else out there in your scenario...- Yes.
0:40:10 > 0:40:12..sitting here watching. What would it be?
0:40:12 > 0:40:15Erm, just look very carefully at what you're spending
0:40:15 > 0:40:18on your grandchildren when you look after them
0:40:18 > 0:40:22cos it surprised me, when I kept my spending diary,
0:40:22 > 0:40:24just how much I was actually spending on her.
0:40:24 > 0:40:25It creeps up on you.
0:40:25 > 0:40:27So, I think that's the first thing I'd say.
0:40:27 > 0:40:29- To dollarize everything? - Yeah, I think so.
0:40:29 > 0:40:33And that whole process of physically writing it down
0:40:33 > 0:40:35not only gives you a lot of information -
0:40:35 > 0:40:37- probably a little bit too alarming...- Yeah, yeah.
0:40:37 > 0:40:39..but it is a useful exercise.
0:40:39 > 0:40:41It is cos it just makes you stop and think,
0:40:41 > 0:40:45"Do I really need to be buying this or doing that?"
0:40:45 > 0:40:48You know, you tend to be a bit indulgent, really.
0:40:48 > 0:40:52- Get a cup of coffee to drink while they're playing.- And the snacks.
0:40:52 > 0:40:55Snacks and a drink, you know, and you think, "Crikey!
0:40:55 > 0:40:58"That's 15 quid gone already, you know. And for what?"
0:40:58 > 0:41:00So, yeah, that was an eye-opener, was that,
0:41:00 > 0:41:02and that is something to think about.
0:41:02 > 0:41:05And has it been a bit of an eye-opener for Sacha,
0:41:05 > 0:41:07- your daughter, as well? - I think it was, actually.
0:41:07 > 0:41:09I don't think she realised quite how much I was spending
0:41:09 > 0:41:11- on looking after Anouska. - It mounts up.
0:41:11 > 0:41:15- It does, yeah, yeah. - So, here's the golden question now.
0:41:15 > 0:41:19Are you going to stick to this reformed Michele now?
0:41:19 > 0:41:21I think I'll have to do, really.
0:41:21 > 0:41:23I don't think I can get away with it.
0:41:23 > 0:41:27Since Sarah decided this was going to be my Venice fund...
0:41:27 > 0:41:29- Yeah.- We want to go to Venice next year.
0:41:29 > 0:41:32So, if we want to get there, I'm going to have to stick to it.
0:41:32 > 0:41:34- Well, good luck to you. - Yeah, and all the best.
0:41:34 > 0:41:36- Nice to meet you, Anouska. - Thank you.- Thank you.
0:41:36 > 0:41:38Thanks, Anouska. High-five. Last one.
0:41:38 > 0:41:41Brilliant. Well done. Now, if you'd like to be considered
0:41:41 > 0:41:43for one of our money transformations,
0:41:43 > 0:41:45e-mail us at...
0:41:47 > 0:41:49But if you're after some general tips
0:41:49 > 0:41:51on how to save cash, here's a few.
0:41:53 > 0:41:57Our website has everything you need to sort out your spending.
0:41:57 > 0:42:00We've teamed up with the Money Advice Service
0:42:00 > 0:42:02to bring you easy-to-use, money-saving tools
0:42:02 > 0:42:04to plan your budget,
0:42:04 > 0:42:07calculate the cost of your car or credit cards
0:42:07 > 0:42:10and give your money a complete health check.
0:42:10 > 0:42:11Download them at...
0:42:15 > 0:42:18Where you can also take our interactive spending test.
0:42:18 > 0:42:20And you'll find plenty more tips and advice
0:42:20 > 0:42:22to keep your finances on track.
0:42:27 > 0:42:29Simon is still with us to answer some questions
0:42:29 > 0:42:31from the good people of Sheffield.
0:42:31 > 0:42:34Now, first up, Richard says he's about to start cycling to work
0:42:34 > 0:42:36to save money on transport.
0:42:36 > 0:42:38Is it worth him getting a bike
0:42:38 > 0:42:41through the cycle to work scheme offered by his employer?
0:42:41 > 0:42:44It certainly is because it can save him between 30% and 40%,
0:42:44 > 0:42:47depending on what kind of taxpayer he is.
0:42:47 > 0:42:50So, you could save between £300 and £400 on a brand-new bike,
0:42:50 > 0:42:53- and, of course, you'll get fit, too. - That sounds like a good deal.
0:42:53 > 0:42:55Burn off a few calories, eh, Denise?
0:42:55 > 0:42:56Now, Nicola would like to know...
0:42:56 > 0:42:59She says, "My car insurance policy is about to run out.
0:42:59 > 0:43:02"How do I find a good deal as I've heard that not all deals
0:43:02 > 0:43:04"are on price comparison websites?"
0:43:04 > 0:43:07- Too true. - It is too true, that's right.
0:43:07 > 0:43:09Some of the biggest insurers in the country
0:43:09 > 0:43:11don't let their policies appear on comparison websites,
0:43:11 > 0:43:14so if you really want to get the best deal
0:43:14 > 0:43:16and check the whole range, you need to be calling them
0:43:16 > 0:43:19as well as going online to check on the comparison sites.
0:43:19 > 0:43:22And Samantha, who's 25 years old, wants to know
0:43:22 > 0:43:25how much she should be putting away for her pension each month.
0:43:25 > 0:43:27OK, there's a simple rule of thumb
0:43:27 > 0:43:30when thinking about how much you need to put into your pension
0:43:30 > 0:43:33to ensure a wonderful retirement. It's this - put half your age.
0:43:33 > 0:43:36So, Samantha, who's 25,
0:43:36 > 0:43:39needs to put 12.5% of her wages into a pension.
0:43:39 > 0:43:40That's not too bad.
0:43:40 > 0:43:43By my calculations, that should be about 30% for you.
0:43:43 > 0:43:44Ouch! That hurt, Lewis.
0:43:44 > 0:43:46And I thought we were mates. THEY LAUGH
0:43:46 > 0:43:49- Leave it there, please. - Thanks, Simon,
0:43:49 > 0:43:52and thanks to everyone who's taken part in our show today.
0:43:52 > 0:43:55And, of course, to all you at home. Now, that's it for today,
0:43:55 > 0:43:57but if you want more money-saving advice, we'll be back soon.
0:43:57 > 0:43:59- So, until then, cheerio.- Bye-bye.