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 > 0:00:15and taken it to people right across the UK.
0:00:15 > 0:00:20Whatever help you need with your finances,
0:00:20 > 0:00:23we are Right On The Money.
0:00:23 > 0:00:25Morning, and welcome to Right On The Money,
0:00:25 > 0:00:28the show that's all about saving you pots of cash
0:00:28 > 0:00:30in the easiest possible way.
0:00:30 > 0:00:34And we've packaged up plenty of advice and top tips for you today.
0:00:34 > 0:00:36Here's a tasty teaser of what's in store.
0:00:36 > 0:00:37Tasty teaser, I like it.
0:00:39 > 0:00:43Prepare for some tough talking from our money expert, who's on a mission
0:00:43 > 0:00:47to help one couple start married life debt-free.
0:00:47 > 0:00:50The pair of you are being fleeced by the financial services industry
0:00:50 > 0:00:52right now and you need to fight back.
0:00:52 > 0:00:54Maybe they can learn a thing or two from this lot.
0:00:54 > 0:00:57As one group of primary school children prove
0:00:57 > 0:01:00you're never too young to be money savvy.
0:01:00 > 0:01:04So, who has heard of a budget and when?
0:01:07 > 0:01:11Starting a new life together can be a really exciting time
0:01:11 > 0:01:13but it can also be a pricey one too.
0:01:13 > 0:01:16Yup, especially if your other half's spending habits
0:01:16 > 0:01:17are just as bad as yours.
0:01:20 > 0:01:23Newly engaged Gary and Rae live together in Eastbourne
0:01:23 > 0:01:24with their kitten, Jim.
0:01:27 > 0:01:28Hello.
0:01:30 > 0:01:34It's as plain as day that this couple are made for each other.
0:01:34 > 0:01:38He's everything. He's funny, he's kind, he's sweet,
0:01:38 > 0:01:42he's always there for me, no matter what happens.
0:01:42 > 0:01:44And the feeling is mutual,
0:01:44 > 0:01:48so much so that, earlier this year, Gary popped the question.
0:01:48 > 0:01:50I was in the bedroom, and as she came in,
0:01:50 > 0:01:53I was down on one knee and I just said, "Will you marry me?"
0:01:53 > 0:01:56And then she said "Yes," started crying.
0:01:57 > 0:02:00SOBS: Sorry, I think I've got something in me eye!
0:02:00 > 0:02:02But this young couple have had to face up
0:02:02 > 0:02:05to more than their fair share of heartache.
0:02:05 > 0:02:08It's been an awful year, I'm not going to lie.
0:02:08 > 0:02:10My dad suffered a major heart attack in September.
0:02:12 > 0:02:14Almost lost his life.
0:02:14 > 0:02:16Last year I lost the most important person in my life,
0:02:16 > 0:02:18which was my mum.
0:02:18 > 0:02:20My mum was everything to me.
0:02:22 > 0:02:26Everything I did, it was to make my mum happy.
0:02:26 > 0:02:28The sudden death of Gary's mum Linda forced him
0:02:28 > 0:02:32to look after his finances for the first time in his life.
0:02:32 > 0:02:36Until then, he'd paid her rent and she'd looked after the bills.
0:02:36 > 0:02:38I found it really hard, obviously,
0:02:38 > 0:02:40because I was used to my mum paying for everything.
0:02:40 > 0:02:42So it was a shock, a massive shock,
0:02:42 > 0:02:46of how much everything is and how much everything can cost.
0:02:47 > 0:02:49Gary and Rae, like many young couples,
0:02:49 > 0:02:52have found that managing the household bills
0:02:52 > 0:02:53has caused friction between them.
0:02:53 > 0:02:56Most of our arguments that we do have are about money,
0:02:56 > 0:02:57- and it's not nice to have that. - Yeah.
0:02:57 > 0:03:01We don't want to argue, but you get to the end of the month,
0:03:01 > 0:03:04you've got no money, "We can't afford this, why did we do this?"
0:03:04 > 0:03:06and you start blaming each other.
0:03:06 > 0:03:09Inexperience in managing their money means that,
0:03:09 > 0:03:12despite working full-time, Gary and Rae have racked up
0:03:12 > 0:03:15a combined debt of almost three grand.
0:03:15 > 0:03:17We know where we are going wrong with our money
0:03:17 > 0:03:21and we know where we waste it, but we're not doing anything about it.
0:03:21 > 0:03:22We just need that...
0:03:22 > 0:03:24I think we just need, like, a reality check.
0:03:24 > 0:03:26With a wedding on the cards,
0:03:26 > 0:03:29Gary and Rae need to start saving up and paying off their debts.
0:03:32 > 0:03:34Sounds like a job for a master of money-saving,
0:03:34 > 0:03:38The Financial Times money editor, Claer Barrett.
0:03:38 > 0:03:42She's come from Eastbourne to give our couple some much-needed advice.
0:03:42 > 0:03:44It's great to meet you.
0:03:44 > 0:03:46Hopefully I can help you with some of your problems.
0:03:47 > 0:03:50But she's not here for a cosy pub chat.
0:03:50 > 0:03:53Claer's dug deep and she's not pulling any punches
0:03:53 > 0:03:56when it comes to putting their financial house in order.
0:03:56 > 0:03:58I've got a letter here which you gave me,
0:03:58 > 0:04:02setting out the fact that you're in arrears with your rent.
0:04:02 > 0:04:05I mean, I hate to break it to you, but if you don't meet
0:04:05 > 0:04:08these rent payments and if you don't keep the council on side,
0:04:08 > 0:04:10- they will evict you.- Yeah.
0:04:10 > 0:04:14Once you've lost that right to have a council property
0:04:14 > 0:04:17- you will never get it back again. - Yeah.
0:04:17 > 0:04:20That is the reality of what is going to happen
0:04:20 > 0:04:24if we don't get a grip on your finances...
0:04:24 > 0:04:29- Yeah.- ..and your spending, and paying the bills on time.
0:04:29 > 0:04:32Never mind the wedding, if they don't sort their debt out,
0:04:32 > 0:04:35they're in danger of being turfed out of their home.
0:04:35 > 0:04:36So there's no time to waste
0:04:36 > 0:04:39for Claer to start saving them some cash.
0:04:39 > 0:04:43Gary and Rae love to unwind by playing computer games,
0:04:43 > 0:04:44which they buy regularly.
0:04:44 > 0:04:47So why on Earth is Claer taking them to a game shop
0:04:47 > 0:04:51where they could be tempted to purchase even more?
0:04:51 > 0:04:53I'm not a gamer myself.
0:04:53 > 0:04:55Tell me how much these things will cost?
0:04:55 > 0:04:58They're usually around £30-40 each when they're brand new.
0:04:58 > 0:05:02Blimey. Some of them look incredibly new.
0:05:02 > 0:05:04Some of them are. A mixture of old and new here.
0:05:04 > 0:05:07We've got quite a few new ones, quite a few older ones.
0:05:07 > 0:05:10- Still in their packaging as well. - Some are still in their packaging.
0:05:10 > 0:05:13- So you haven't even played them? - Haven't even got round to playing some of them.
0:05:13 > 0:05:15Because you've just got too many, too many toys?
0:05:15 > 0:05:17Too many to play.
0:05:17 > 0:05:19But Claer wants to teach them a basic lesson
0:05:19 > 0:05:22about managing their money. It's all about choices.
0:05:22 > 0:05:25Spending cash on one thing means they won't have any left
0:05:25 > 0:05:28for something else they may really want.
0:05:29 > 0:05:31OK, well, let's have a quick count,
0:05:31 > 0:05:34we've got one, two, three, four, five, six, seven, eight, nine, ten.
0:05:34 > 0:05:36Let's assume £40 each.
0:05:36 > 0:05:40- So that's £400 that you've spent on these games.- Yep.
0:05:40 > 0:05:42Something like that, yeah.
0:05:42 > 0:05:45So, I mean, that could be quite a nice wedding dress
0:05:45 > 0:05:48- for you, young lady.- Yeah.
0:05:48 > 0:05:50If you think about it that way.
0:05:51 > 0:05:54Claer has got an idea on how to make some cash back
0:05:54 > 0:05:56on their unwanted games.
0:05:56 > 0:06:00Like many games shops, this one offers an exchange service.
0:06:02 > 0:06:07So the price for all of those games for store credit would be £58.20.
0:06:07 > 0:06:08Wow, OK.
0:06:08 > 0:06:11- The cash would be £38.90.- Nice!
0:06:13 > 0:06:14So, guys, what do you want to do?
0:06:15 > 0:06:20I think, on this occasion, we'll take the money to help us out,
0:06:20 > 0:06:23but in the future, definitely we'll be trading them in
0:06:23 > 0:06:26a lot more to help towards the games.
0:06:26 > 0:06:27OK, so we'll take the money.
0:06:29 > 0:06:30That's the spirit.
0:06:30 > 0:06:33But while the couple have made a handy bit of cash on games
0:06:33 > 0:06:36gathering dust in their games library,
0:06:36 > 0:06:38Claer takes her advice to the next level.
0:06:38 > 0:06:42Maybe you could implement a policy - I'm looking at you Rae -
0:06:42 > 0:06:45one in, one out. Yeah. Gary wants a new game,
0:06:45 > 0:06:50- he has to bring at least one game back for exchange.- Uh-huh.
0:06:50 > 0:06:52Yeah, OK, that's a good one.
0:06:52 > 0:06:56If Gary can curb his spending on new games and exchanges some of the ones
0:06:56 > 0:07:01he already has, we calculate they could save at least £200 a year.
0:07:01 > 0:07:04Leaving Gary with strict instructions not to buy anything,
0:07:04 > 0:07:06Claer takes Rae for a cuppa and a quiet word.
0:07:08 > 0:07:13So, I've heard on the grapevine that you're very generous.
0:07:13 > 0:07:15When it comes to family,
0:07:15 > 0:07:18everyone gets four or five Christmas presents or birthday presents,
0:07:18 > 0:07:20they don't just get one.
0:07:20 > 0:07:22I hear that Gary had quite a good Christmas as well.
0:07:23 > 0:07:26- Gary got so much stuff. - He got three pairs of trainers.
0:07:26 > 0:07:28Why the excess?
0:07:28 > 0:07:32Why not one really nice present? Why does it have to be five or six?
0:07:34 > 0:07:36Truthfully, it's for the attention.
0:07:37 > 0:07:41I'll be honest, I like the attention when they sit there and they cry
0:07:41 > 0:07:43and they go, "Oh, my God, thank you so much."
0:07:43 > 0:07:45- You're showing them your love... - Yeah.
0:07:45 > 0:07:48..by the amount of money that you're spending on them,
0:07:48 > 0:07:52- but that's not how love is... - I know.- ..is measured.
0:07:52 > 0:07:56Just as it makes you happy to give him so much,
0:07:56 > 0:08:00- you've got to look at your happiness in the wider aspect...- Yeah.
0:08:00 > 0:08:01..and say, well, actually,
0:08:01 > 0:08:05I might be giving him happiness for that moment by giving him this gift,
0:08:05 > 0:08:09- but at the end of the month... - I'm going to be skint.
0:08:09 > 0:08:12- ..I'm going to be giving myself more sadness.- Yeah, I know.
0:08:12 > 0:08:14I do, yeah.
0:08:14 > 0:08:16You are such a lovely girl.
0:08:16 > 0:08:19Your motivation is good, because you want everyone to have a good time...
0:08:19 > 0:08:22- Yeah.- ..but you've got to remember you at the end of the day.
0:08:23 > 0:08:25I'm not saying you can't be generous,
0:08:25 > 0:08:28but you've got to be able to know when to stop.
0:08:30 > 0:08:33That's a great piece of advice for everyone.
0:08:33 > 0:08:36Now, if Rae sticks to buying one present per person
0:08:36 > 0:08:39she would save £389 a year.
0:08:39 > 0:08:42Don't say it with flowers - or diamonds! -
0:08:42 > 0:08:45in fact, don't say it with computer games, just say it, Rae.
0:08:45 > 0:08:48Even though we've engaged and I do love him and he loves me,
0:08:48 > 0:08:50it's still...
0:08:50 > 0:08:54It's still a new thing that we still have to get used to,
0:08:54 > 0:08:57so I need to learn how to do that one.
0:08:57 > 0:09:00And, obviously, he responds well and he likes it.
0:09:00 > 0:09:02- Yeah.- And it's free.
0:09:02 > 0:09:04Yes! Yeah, definitely.
0:09:05 > 0:09:09The next thing on Claer's agenda is not as nice and romantic,
0:09:09 > 0:09:11but it can't be put off any longer -
0:09:11 > 0:09:13bank charges.
0:09:13 > 0:09:15Because the couple are in the red,
0:09:15 > 0:09:18their direct debits are bounced back by their bank
0:09:18 > 0:09:22with an additional surcharge added on, and it's all mounting up.
0:09:22 > 0:09:25Do you know how much your bank is charging you
0:09:25 > 0:09:27- when you miss a bill payment? - I'm not sure, no.
0:09:27 > 0:09:30Every time one of those is not being paid,
0:09:30 > 0:09:35- that's adding £10 onto your bank charges for the month after.- Yeah.
0:09:35 > 0:09:37So, I looked through your bank statements for January,
0:09:37 > 0:09:41and how many missed direct debit payments do you think you had in that month?
0:09:41 > 0:09:43I think I had three or four in that month, maybe more.
0:09:43 > 0:09:45More? Five? Six?
0:09:45 > 0:09:48- Seven?- Nine.- Nine?! Wow.
0:09:48 > 0:09:50How did I have nine?
0:09:50 > 0:09:5390 quid you're going to get charged this month now.
0:09:54 > 0:09:56- Yeah.- Needlessly. - I think I did, probably...
0:09:56 > 0:10:00For what? You're paying a penalty for being disorganised.
0:10:00 > 0:10:03- You've got to think of it like a lazy tax.- Yeah!
0:10:03 > 0:10:05If you don't get yourselves in order,
0:10:05 > 0:10:08then the banks and the finance institutions
0:10:08 > 0:10:10are going to take a pound of flesh.
0:10:12 > 0:10:15Gary has paid dear for being disorganised.
0:10:15 > 0:10:17If he made an effort to be more disciplined
0:10:17 > 0:10:19and pay his bills on time,
0:10:19 > 0:10:22he would save a massive £1,080 a year.
0:10:22 > 0:10:25Now, if that's not an incentive, Gary...?
0:10:25 > 0:10:27And Rae is just as guilty.
0:10:27 > 0:10:31Last month, she was charged 160 smackers by her bank,
0:10:31 > 0:10:33and Claer's not impressed.
0:10:33 > 0:10:35Every day that you're overdrawn,
0:10:35 > 0:10:39when you haven't arranged the overdraft with the bank,
0:10:39 > 0:10:41you're getting charged £6 a day.
0:10:41 > 0:10:45So, a week, that's £42 a week.
0:10:45 > 0:10:46- Yeah.- And that's not all.
0:10:46 > 0:10:51Every time you use your card when you are that overdrawn,
0:10:51 > 0:10:53with an unauthorised overdraft,
0:10:53 > 0:10:57they're going to charge an extra £10 every time you use your card.
0:10:57 > 0:11:01So that's how you can get to £160 worth of charges,
0:11:01 > 0:11:04plus still have the debt to pay back.
0:11:04 > 0:11:07I didn't look into that. I didn't know anything about it.
0:11:07 > 0:11:12Do you want to be giving all of this money to the boring bank?
0:11:12 > 0:11:14- Yeah.- Or do you want it to be... - Save it for our wedding.
0:11:14 > 0:11:17- ..going towards your big day? - Yeah, yeah.- Exactly.
0:11:18 > 0:11:21It's estimated a whopping 16.8 million Brits
0:11:21 > 0:11:25have slipped into an unauthorised overdraft.
0:11:25 > 0:11:27So, if you're in that position,
0:11:27 > 0:11:30making a call to your bank could save you a tonne of cash.
0:11:31 > 0:11:32The pair of you are being fleeced
0:11:32 > 0:11:35- by the financial services industry right now.- Yeah.
0:11:35 > 0:11:37And you need to fight back.
0:11:37 > 0:11:41If Rae agrees an overdraft with her bank,
0:11:41 > 0:11:45she could save a massive £1,920 a year.
0:11:45 > 0:11:47And there are more savings to be had,
0:11:47 > 0:11:50as Claer tackles one of Gary's biggest expenditures.
0:11:50 > 0:11:54So, Gary, this is your lovely car.
0:11:54 > 0:11:57- Yes.- But how much of your lovely money is it costing you each month?
0:11:57 > 0:12:00It's £268 a month.
0:12:00 > 0:12:01Ooh!
0:12:01 > 0:12:02And that's just for the car?
0:12:02 > 0:12:06For everything. It's insurance, car, I just add fuel.
0:12:06 > 0:12:08It's called the Just Add Fuel policy.
0:12:08 > 0:12:11OK, so with the petrol, probably about £300?
0:12:11 > 0:12:14- Probably about £300 a month, with petrol.- Do you both drive?
0:12:14 > 0:12:16No, I'm the only driver.
0:12:16 > 0:12:19- Rae...?- No, I don't drive.
0:12:19 > 0:12:22So you're not getting any benefit out of this £300 cost
0:12:22 > 0:12:24- to your relationship.- Not at all.
0:12:24 > 0:12:27It's handy to have, but no, I don't drive it, unfortunately.
0:12:27 > 0:12:30Gary doesn't actually own this car,
0:12:30 > 0:12:31he's just leasing it,
0:12:31 > 0:12:33which means, after three years,
0:12:33 > 0:12:36he'll either have to pay a lump sum or give it back.
0:12:36 > 0:12:40Leasing cars like this has become incredibly popular.
0:12:40 > 0:12:42Last year, nine out of ten private car buyers
0:12:42 > 0:12:45bought their cars in this way.
0:12:45 > 0:12:48That's more than 1 million cars.
0:12:48 > 0:12:52But Gary's annual mileage is very low and for most of the time,
0:12:52 > 0:12:55his motor is standing outside the house, losing value.
0:12:55 > 0:12:59Claer reckons that he's miles away from getting his money's worth.
0:12:59 > 0:13:03If I was to say to you, how would you feel
0:13:03 > 0:13:07if we could hand this car back to the finance company,
0:13:07 > 0:13:10so that you wouldn't have to pay for it every month?
0:13:10 > 0:13:13I would happily get out of it. It's a massive expense that I don't need.
0:13:13 > 0:13:16Car finance agreements are very easy to get into
0:13:16 > 0:13:21but very difficult to get out of, so we are going to look into this.
0:13:21 > 0:13:24We're going to speak to the car company together to see
0:13:24 > 0:13:28if there's any way that we can actually end your agreement early.
0:13:28 > 0:13:31Cutting loose from the car lease agreement
0:13:31 > 0:13:33would free up thousands of pounds for this couple.
0:13:33 > 0:13:37So it's time for Claer to look at the small print.
0:13:37 > 0:13:39Join us again to see if our money maestro
0:13:39 > 0:13:43can get Gary and Rae's finances in tune for their big day.
0:13:43 > 0:13:44Cheers.
0:13:50 > 0:13:52Gary and Rae will be here a little bit later to tell us
0:13:52 > 0:13:56if that dream wedding is any closer to becoming a reality.
0:13:56 > 0:13:58- Fingers crossed. - You're such a hopeless romantic.
0:13:58 > 0:14:00- I can't help it!- She is.
0:14:00 > 0:14:03Joining us now is personal finance expert Simon Read
0:14:03 > 0:14:07and also consumer psychologist Dimitrios Tsivrikos.
0:14:08 > 0:14:10I'm going to start with you, Simon.
0:14:10 > 0:14:13Because, in that film, we saw Gary and Rae, and they were struggling
0:14:13 > 0:14:16to pay their bills since moving in together, and that's quite a common problem, isn't it?
0:14:16 > 0:14:18It's a very common problem amongst young people.
0:14:18 > 0:14:21There was a survey by the Money Advice Trust recently.
0:14:21 > 0:14:23They talked to 18-24-year-olds,
0:14:23 > 0:14:26around half of them said they worry about money regularly.
0:14:26 > 0:14:29Almost a third say that it's a deep burden on them.
0:14:29 > 0:14:31So what's the answer there, Simon,
0:14:31 > 0:14:34if it's so prevalent in that age group? What can they do?
0:14:34 > 0:14:36I think it's all about education.
0:14:36 > 0:14:39People need to learn from a young age how to manage money.
0:14:39 > 0:14:41The House of Lords recently called
0:14:41 > 0:14:44for people in the primary school to be taught.
0:14:44 > 0:14:47We know that, actually, children from the age of seven
0:14:47 > 0:14:49already have an ingrained feeling about money.
0:14:49 > 0:14:52So, by then, we need to teach them to respect money
0:14:52 > 0:14:53and understand its value.
0:14:53 > 0:14:57Dimitrios, what age do children actually become consumers?
0:14:57 > 0:14:59As young as five years old.
0:14:59 > 0:15:01- Really?- Give us an idea, what are you talking about?
0:15:01 > 0:15:05When kids go into what sort of shops are they starting to be influenced?
0:15:05 > 0:15:09Say, for instance, when we are going to a massive retail supermarket.
0:15:09 > 0:15:11We normally have, on a shopping trolley,
0:15:11 > 0:15:13- you will actually see a kid's seat. - Yes.
0:15:13 > 0:15:17So most of us, as consumers, we feel that's a very considerate act,
0:15:17 > 0:15:21being allowed to place your young child into a trolley.
0:15:21 > 0:15:26In reality, what happens is these positions are there to train you
0:15:26 > 0:15:30to recognise brands and products, and there are two dangers there.
0:15:30 > 0:15:35One of them is that a child can really dictate what you're buying.
0:15:35 > 0:15:36Crying their eyes out,
0:15:36 > 0:15:38"Mummy or Daddy, could I have this or that?"
0:15:38 > 0:15:41And of course, poor parents, to keep them quiet, they do buy them.
0:15:41 > 0:15:44And the second thing is that the associations that we build
0:15:44 > 0:15:48from such a young age, stay with us at a later stage.
0:15:48 > 0:15:50So, what you're saying, these retailers,
0:15:50 > 0:15:53they'll put certain products at the right height so that kids sitting in
0:15:53 > 0:15:56those chairs in the baskets are going,
0:15:56 > 0:15:58"I want that, I want that, I want that, I want that one."
0:15:58 > 0:16:00- Yeah?- Absolutely.
0:16:00 > 0:16:02So, the colours, the shapes,
0:16:02 > 0:16:05the logos of them are there to attract that level of attention.
0:16:05 > 0:16:06Sneaky.
0:16:06 > 0:16:07How do you get around that one?
0:16:07 > 0:16:09Walk with my trolley...
0:16:09 > 0:16:13"No. Put that back. You're not having that today. No."
0:16:13 > 0:16:17"Wahh!" And then the tantrums kick in, but you've got to be strong.
0:16:17 > 0:16:19You've got to have, you know,
0:16:19 > 0:16:22that willpower not to give into your children all the time.
0:16:22 > 0:16:25- Absolutely. - Thanks Dimitrios, thanks Simon.
0:16:25 > 0:16:27Now, in my eyes, it's never too early
0:16:27 > 0:16:30- to start teaching kids the value of money.- I couldn't agree more, Dom.
0:16:30 > 0:16:33So, what is the best way of getting that message across?
0:16:34 > 0:16:36- Right, one.- £200.
0:16:36 > 0:16:39- £200 from...Joely?- Jordy.- Jordy.
0:16:39 > 0:16:42Kids at this Lancashire primary school are getting a lesson
0:16:42 > 0:16:44with a difference today.
0:16:44 > 0:16:46750 from Henry.
0:16:47 > 0:16:49It's all about money.
0:16:49 > 0:16:52- 1,000.- 1,000 from Caitlin! Going up and up and up.
0:16:52 > 0:16:55Former teacher Brian works for a debt charity.
0:16:55 > 0:16:58It's one of a number of organizations running
0:16:58 > 0:17:00money management education programmes
0:17:00 > 0:17:02for children as young as nine,
0:17:02 > 0:17:05long before it's on the secondary school curriculum.
0:17:05 > 0:17:06Course it is, surplus.
0:17:06 > 0:17:09Our view is, that when the people get to high school
0:17:09 > 0:17:13and get to 14 or 15, you're looking to maybe change habits.
0:17:13 > 0:17:15Here in primary schools, you're developing them.
0:17:17 > 0:17:20And children could start learning about money even earlier.
0:17:21 > 0:17:24A recent report recommended kids as young as five
0:17:24 > 0:17:26should be taught about personal finance
0:17:26 > 0:17:30to boost understanding of money later in life.
0:17:30 > 0:17:32- Help me, help me, help...- 2,000. - That was very, very good.
0:17:32 > 0:17:36Brian's programme introduces children to essential life skills,
0:17:36 > 0:17:39like budgeting and debt.
0:17:39 > 0:17:41We give children the knowledge, understanding and skills.
0:17:42 > 0:17:44And from that, therefore,
0:17:44 > 0:17:48we hope that they will develop an attitude towards money that's very
0:17:48 > 0:17:51sensible, it's very safe, it's based on a correct body of knowledge.
0:17:51 > 0:17:54He actually didn't make a budget.
0:17:54 > 0:17:56And if he had, things would've been different.
0:17:56 > 0:18:00And there are plenty of chances for children to get involved.
0:18:00 > 0:18:04So, who has heard of a budget and where?
0:18:04 > 0:18:06Hmm, sounds good!
0:18:06 > 0:18:08But what do the most important people
0:18:08 > 0:18:11think they've learned from the lessons?
0:18:11 > 0:18:13I think it's important for when people grow up,
0:18:13 > 0:18:16because if they don't know how to manage their money properly,
0:18:16 > 0:18:19they could go to a lot of debt.
0:18:19 > 0:18:22Only get into debt if you can pay it back.
0:18:22 > 0:18:26And also it's better to have a surplus.
0:18:26 > 0:18:28At home, I've got about £60.
0:18:28 > 0:18:31And I've got about £7.50!
0:18:33 > 0:18:37Today's session features the difference between wants and needs.
0:18:37 > 0:18:40That's a valuable lesson for us all to learn.
0:18:40 > 0:18:42If I got a lot of money I'd spend it on needs first
0:18:42 > 0:18:46and if I still had some saved up, I'd buy some wants.
0:18:46 > 0:18:50Needs are like water and food, that we always have.
0:18:50 > 0:18:54And wants are like things that you want but you don't really need.
0:18:54 > 0:18:57I spend most of my pocket money on clothes.
0:18:57 > 0:19:00I spend most of mine on sweets.
0:19:00 > 0:19:03Well, they sound like needs to me.
0:19:03 > 0:19:05The children have responded really well to it,
0:19:05 > 0:19:07because I think it's the way it's presented.
0:19:07 > 0:19:10It's the real world, isn't it? It's real life.
0:19:10 > 0:19:14I think money can be a sensitive subject for some people.
0:19:14 > 0:19:16If they're struggling financially,
0:19:16 > 0:19:18perhaps they want to protect their children.
0:19:18 > 0:19:21But I think if children can help their families
0:19:21 > 0:19:24by doing simple little things to save a little bit of money,
0:19:24 > 0:19:27I think that can only be a good thing.
0:19:27 > 0:19:31So, we've come up with a Right On The Money challenge
0:19:31 > 0:19:34to see if and how these lessons can influence the decisions children
0:19:34 > 0:19:37make about spending money.
0:19:37 > 0:19:40Our two teams are Emilia and Olivia,
0:19:40 > 0:19:42and Natalie and Ava.
0:19:42 > 0:19:45Natalie and Ava have been taking the money lessons.
0:19:45 > 0:19:48While Emilia and Olivia, like most children their age, haven't.
0:19:51 > 0:19:53We've asked them all to plan a day out for a family of four,
0:19:53 > 0:19:56including activities and food.
0:19:56 > 0:19:59Moira O'Neill, the editor of Moneywise magazine,
0:19:59 > 0:20:01is on hand to see what happens.
0:20:01 > 0:20:04Right, girls, you can see on the board
0:20:04 > 0:20:07there's lots of different options about what you might want to do.
0:20:07 > 0:20:08Off you go.
0:20:08 > 0:20:11Grown-ups, look away now. It's not going to be cheap.
0:20:12 > 0:20:15So, how about we have an ice cream?
0:20:15 > 0:20:17- Bowling.- Yeah.
0:20:17 > 0:20:20And that's £10 per person, so £40.
0:20:20 > 0:20:22You've gone swimming, bowling,
0:20:22 > 0:20:26ice cream, cinema and the zoo.
0:20:26 > 0:20:27How much have you spent, girls?
0:20:27 > 0:20:29314.
0:20:29 > 0:20:31£314? Wow.
0:20:31 > 0:20:35£375. Very expensive day out.
0:20:35 > 0:20:37It is, yeah.
0:20:37 > 0:20:39Wow. So, it seems the girls know how to spend money
0:20:39 > 0:20:42when there's no restrictions.
0:20:42 > 0:20:45But how will they get on when they have a budget of £50?
0:20:45 > 0:20:50Will Natalie and Ava be more savvy spenders than Emilia and Olivia?
0:20:50 > 0:20:53And just to mix it up a bit,
0:20:53 > 0:20:56both teams have money-saving vouchers which they can use as well.
0:20:56 > 0:20:59Natalie and Ava get stuck in straightaway.
0:20:59 > 0:21:05- So, that'd be £7 per person. - We should be £28?- 28.
0:21:05 > 0:21:08And you could do half, with 50% off.
0:21:08 > 0:21:11Why are you using that voucher? Can you tell me?
0:21:11 > 0:21:12You're saving half.
0:21:12 > 0:21:16You're saving half the price you should've paid.
0:21:16 > 0:21:20But Olivia and Emilia, who, like most primary school children,
0:21:20 > 0:21:23have not had lessons, take longer to get to grips with how vouchers
0:21:23 > 0:21:25can help stretch their budget.
0:21:25 > 0:21:27But we're only getting one.
0:21:27 > 0:21:29Now, you've had a good look at those vouchers.
0:21:29 > 0:21:32Do you want to come back and look at the things that you wanted to do
0:21:32 > 0:21:34on your special family day out and see if you can use
0:21:34 > 0:21:36any of those vouchers to make it cheaper?
0:21:40 > 0:21:42Could you use any vouchers on the swimming?
0:21:44 > 0:21:45Erm, yeah.
0:21:45 > 0:21:48- 50% off.- Ooh!
0:21:48 > 0:21:50Both teams have planned fantastic days out
0:21:50 > 0:21:52and kept pretty much on-budget.
0:21:52 > 0:21:54So, what does Moira think?
0:21:54 > 0:21:59I was expecting the two groups to perform the task differently.
0:21:59 > 0:22:02And I was expecting the personal finance lessons
0:22:02 > 0:22:08to translate into a more confident approach to doing the tasks.
0:22:08 > 0:22:11But I was surprised at how big the difference was.
0:22:12 > 0:22:14Great job, girls!
0:22:14 > 0:22:17All four of you can plan my family's next day out.
0:22:17 > 0:22:21Brian's a firm believer in the benefit of talking to children
0:22:21 > 0:22:23about cash and spending.
0:22:23 > 0:22:25I think parents, it's very important
0:22:25 > 0:22:27they do talk to children about money.
0:22:27 > 0:22:30So that children do know how much it costs for the rent,
0:22:30 > 0:22:34for the mortgage or for the car. They'll have to do that one day.
0:22:34 > 0:22:37And he's got one top tip for parents to consider.
0:22:37 > 0:22:40When children become 11, they can have a debit card.
0:22:40 > 0:22:42So they're given the money once a month,
0:22:42 > 0:22:44there's your money, there's your card.
0:22:44 > 0:22:47If you spend it all this week, you've three weeks with no money.
0:22:47 > 0:22:49So they're very early on realising,
0:22:49 > 0:22:51when it comes, to plan your money over time.
0:22:53 > 0:22:57And for the kids, it's clearly teaching them lessons for life.
0:22:57 > 0:23:01It definitely gives me practical skills, definitely.
0:23:01 > 0:23:04I'm not wasting my money on some sweets.
0:23:04 > 0:23:06And to be honest, I don't really like sweets.
0:23:06 > 0:23:08So I'm all right with that.
0:23:08 > 0:23:10I think they help at home with money,
0:23:10 > 0:23:14because I know not to spend it all when I do get money.
0:23:14 > 0:23:16I try to save my pocket money.
0:23:16 > 0:23:19I DO save my pocket money.
0:23:19 > 0:23:20Class dismissed.
0:23:25 > 0:23:27And well done to those super-savvy children.
0:23:27 > 0:23:30Now, when I was a kid I remember wanting to get my hands
0:23:30 > 0:23:33on the very latest Action Man.
0:23:33 > 0:23:34The one with the eagle eyes.
0:23:35 > 0:23:37Nothing's really changed,
0:23:37 > 0:23:40except nowadays it's also about gadgets and trendy trainers.
0:23:40 > 0:23:43But what happens when all those must-haves are left
0:23:43 > 0:23:45to collect dust in the attic?
0:23:45 > 0:23:49Well, joining me today is antiques and collectibles specialists
0:23:49 > 0:23:51Kathy Taylor and Richard Beale.
0:23:51 > 0:23:53Kathy, I'm going to start with you.
0:23:53 > 0:23:55Early Star Wars figures, give me an idea, how much are they worth?
0:23:55 > 0:23:57They can be worth a lot of money,
0:23:57 > 0:24:00particularly the 3.75" figures that you see here.
0:24:00 > 0:24:03Even loose, they can be worth a lot of money.
0:24:03 > 0:24:05Yeah, but a lot doesn't mean much. Give me some figures.
0:24:05 > 0:24:07- How much are we talking about? - Erm, well...
0:24:07 > 0:24:11- 20 quid, 50 quid?- This fellow here...- Yep?- ..250 to 350.
0:24:11 > 0:24:14- Really? - Yeah, he's a Blue Snaggletooth.
0:24:14 > 0:24:18And he was only produced for a short period of time in America.
0:24:18 > 0:24:19But if it's a rare figure,
0:24:19 > 0:24:23they still can command quite a good value, because everybody wants them.
0:24:23 > 0:24:26And that probably cost back in its day, what? Two or three quid?
0:24:26 > 0:24:27Yeah, if you could've got him on a card
0:24:27 > 0:24:29that would have been probably about a pound.
0:24:29 > 0:24:31- Wow.- And then they went up to about £1.49.
0:24:31 > 0:24:34So, that's a really good investment if you get it right.
0:24:34 > 0:24:37Yeah, people when they get into their 40s, 50s, 60s,
0:24:37 > 0:24:39they might've paid off the mortgage, their kids have left home,
0:24:39 > 0:24:42and all of a sudden they've got money in their pocket.
0:24:42 > 0:24:44And often people will think,
0:24:44 > 0:24:46"Well, OK, I mean, I've got a bit of money now,
0:24:46 > 0:24:49"I'll buy something that I remember from my youth."
0:24:49 > 0:24:52Presumably, there's someone probably in the Far East somewhere
0:24:52 > 0:24:55that's making these as fakes though, isn't there?
0:24:55 > 0:24:56Particularly the weapons, yeah.
0:24:56 > 0:25:00But I'll show you an little tip here.
0:25:00 > 0:25:01Yeah.
0:25:02 > 0:25:04Right. What do you notice?
0:25:04 > 0:25:07- Well, it's got wet.- It floats. - Oh, yeah, and it floats, yeah.
0:25:07 > 0:25:09The fakes that are on the market, sink.
0:25:09 > 0:25:11But you need to know what you're looking at.
0:25:11 > 0:25:13- So, if it sinks, it's a fake?- Yeah.
0:25:13 > 0:25:17There's probably loads of people right now who've got a box like this
0:25:17 > 0:25:19in the attic or even got a doll like that
0:25:19 > 0:25:20or a whole load of them in the attic.
0:25:20 > 0:25:23What is going to be the best way for somebody to make sure
0:25:23 > 0:25:27they're getting the best price and not 50p at car-boot sale?
0:25:27 > 0:25:29The key is to go to people who know.
0:25:29 > 0:25:32Don't have a guess. You put it on eBay, you might end up with nothing
0:25:32 > 0:25:35for something that's worth quite a lot of money.
0:25:35 > 0:25:39And you need to show it to people who know, basically.
0:25:39 > 0:25:42What happens if there isn't an expert like you on their doorstep?
0:25:42 > 0:25:44You can do it remotely.
0:25:44 > 0:25:46With a series of photographs.
0:25:46 > 0:25:49Lay it out on a table, nice white background.
0:25:49 > 0:25:51We're able to look at things remotely.
0:25:51 > 0:25:53There's an awful lot of people right now,
0:25:53 > 0:25:56- probably sitting on a small fortune.- Oh, absolutely!
0:25:56 > 0:25:59And I mean, don't think just because it's from the '70s,
0:25:59 > 0:26:03'80s or even the 1990s, it's worthless and too modern.
0:26:03 > 0:26:05Because that sort of era, now,
0:26:05 > 0:26:09anything that's TV and film related, through the roof.
0:26:09 > 0:26:11There you have it, get off the settee,
0:26:11 > 0:26:14get upstairs and have a rummage through the attic.
0:26:15 > 0:26:18Let's leave Dom to relive his childhood
0:26:18 > 0:26:20while I chat to the good people at Stockport market
0:26:20 > 0:26:23about when they think it's the right time to teach kids
0:26:23 > 0:26:26about the value of money.
0:26:26 > 0:26:28What age would you start talking to your children about money
0:26:28 > 0:26:29and how to handle it?
0:26:30 > 0:26:33Maybe about 12 years old, you know when they start high school,
0:26:33 > 0:26:35maybe around that time.
0:26:35 > 0:26:37But do you know some people actually think
0:26:37 > 0:26:40- it's a good time to start when they're five?- No.
0:26:40 > 0:26:43- No?- I wouldn't.- That's too young? - Yeah, yeah, that's too young.
0:26:43 > 0:26:45Tell me, do you give your son pocket money?
0:26:45 > 0:26:47Yes I do, yeah. He has to help around the house though,
0:26:47 > 0:26:48to learn how to make the money
0:26:48 > 0:26:50because it doesn't grow on trees nowadays, does it?
0:26:50 > 0:26:51That's right, exactly.
0:26:51 > 0:26:54So, you give him chores and he gets rewarded for that?
0:26:54 > 0:26:55That's right, that's right.
0:26:55 > 0:26:58When is a good time to start talking about money?
0:26:58 > 0:27:00Some people say as young as five is acceptable.
0:27:00 > 0:27:01What's your opinion?
0:27:01 > 0:27:04I didn't learn the values of money when I was that young.
0:27:04 > 0:27:05It was only when I first started work
0:27:05 > 0:27:07before I learned the values of money.
0:27:07 > 0:27:11You always have to learn how to cope with money, you know,
0:27:11 > 0:27:12and deal with it, don't you?
0:27:12 > 0:27:16So, it's always a learning process, whatever age you are.
0:27:16 > 0:27:18- Even at my age.- Your tender age.
0:27:18 > 0:27:19Yeah, yes, yeah.
0:27:19 > 0:27:22- Lorraine, thanks ever so much. - You're more than welcome.
0:27:24 > 0:27:26Earlier on, we met Gary and Rae
0:27:26 > 0:27:30who were struggling to manage their debts and save up for their wedding.
0:27:30 > 0:27:32So has personal-finance expert Claer Barrett managed
0:27:32 > 0:27:34to squirrel away enough money for the big day?
0:27:36 > 0:27:39Newly engaged Rae and Gary from Eastbourne
0:27:39 > 0:27:42desperately want to splash out on the wedding of their dreams.
0:27:42 > 0:27:45But their spending habits and lack of financial know-how
0:27:45 > 0:27:49have landed them almost three grand into debt.
0:27:49 > 0:27:52- Our spending is shocking. - Horrible, yeah.
0:27:54 > 0:27:57We're like, as soon as we get paid, we're like, "Ooh, we've got money."
0:27:57 > 0:27:59Let's go have a meal, let's go and...
0:27:59 > 0:28:01- Have drinks. - ..have some drinks with mates.
0:28:01 > 0:28:04We don't seem to think we need to put that aside
0:28:04 > 0:28:07and need to save that. We need to calm down.
0:28:08 > 0:28:12Earlier on, the Financial Times money editor Claer Barrett
0:28:12 > 0:28:14was busy teaching this young couple
0:28:14 > 0:28:16how to put their financial house in order.
0:28:16 > 0:28:20She saved them hundreds of pounds on their overdraft fees
0:28:20 > 0:28:22and even showed them how they can make money
0:28:22 > 0:28:25from selling their unwanted computer games.
0:28:25 > 0:28:28- OK, so we'll take the money. - Yeah, cool beans.
0:28:30 > 0:28:32Thank you.
0:28:32 > 0:28:34Now Claer's back to take them on the next leg
0:28:34 > 0:28:37of their money-saving journey.
0:28:37 > 0:28:38Hi.
0:28:38 > 0:28:42One of Gary's biggest expenses is his leased car.
0:28:42 > 0:28:46He's paying over £268 a month for it, despite rarely using it.
0:28:46 > 0:28:49But Claer has been studying the paperwork
0:28:49 > 0:28:51and reckons that there may be room for manoeuvre
0:28:51 > 0:28:54when it comes to reversing out of the agreement early.
0:28:55 > 0:29:00So, I've got the terms and conditions here that you gave me.
0:29:00 > 0:29:05Seven pages of A4 and even a financial black belt like me,
0:29:05 > 0:29:07I have to say it took several cups of coffee
0:29:07 > 0:29:09and looking through the small print.
0:29:09 > 0:29:13By my calculations, it may be possible for you
0:29:13 > 0:29:18to hand back this car for as little as 200-300 quid.
0:29:18 > 0:29:20Oh, wow, wow, OK, yeah.
0:29:20 > 0:29:23That is a lot, lot cheaper than I thought it would be.
0:29:24 > 0:29:26That's fantastic news.
0:29:26 > 0:29:28For a very small fee,
0:29:28 > 0:29:31Gary could terminate the lease agreement and hand his car back,
0:29:31 > 0:29:36saving a gigantic £6,432.
0:29:36 > 0:29:38For the amount of miles he does,
0:29:38 > 0:29:40Gary could look at joining a car-pool club
0:29:40 > 0:29:43or hiring a car for longer journeys.
0:29:43 > 0:29:44OK, brilliant. Thank you for that.
0:29:44 > 0:29:47- Feeling empowered! - Definitely, definitely.- OK.
0:29:48 > 0:29:50As they continue with their money-saving,
0:29:50 > 0:29:52it's crunch time for Claer,
0:29:52 > 0:29:56as she tackles Gary and Rae's biggest expense - food.
0:29:56 > 0:30:00It turns out that almost half of this couple's monthly income
0:30:00 > 0:30:03goes on groceries, eating out, and takeaways.
0:30:03 > 0:30:05It's time for some home truths.
0:30:05 > 0:30:08Seems like the chickens could be coming home to roost.
0:30:09 > 0:30:13Based on the bank statements that you've given me,
0:30:13 > 0:30:16this is how much money you guys spent in the supermarket last month.
0:30:18 > 0:30:20Just over £400.
0:30:20 > 0:30:23Just on supermarket shopping?
0:30:23 > 0:30:27Thing is, though, we've thrown probably £200 of that away, easy.
0:30:28 > 0:30:32Gary and Rae need to get a grip on their wasteful habits.
0:30:32 > 0:30:34Despite stocking up at the supermarket,
0:30:34 > 0:30:36they often pick up a takeaway on the way home.
0:30:38 > 0:30:42If I asked you to burn £200 of this money with a lighter right now,
0:30:42 > 0:30:46- how would you feel?- I don't know. - No way, no.- I don't know.
0:30:46 > 0:30:49- That's what we're pretty much doing. - You've got to remember this feeling
0:30:49 > 0:30:51every time you're opening your bin and throwing food in it.
0:30:51 > 0:30:54It's like you're literally throwing money down the drain.
0:30:54 > 0:30:55- Throwing away money, yeah.- OK?
0:30:58 > 0:30:59Gary and Rae are not alone.
0:30:59 > 0:31:01We are a nation of food wasters.
0:31:01 > 0:31:06Throwing away good grub costs the average home £700 a year.
0:31:06 > 0:31:11As they head home, Claer unearths the next candidates for the food bin
0:31:11 > 0:31:13rather than the cooking pot.
0:31:13 > 0:31:16What's this? Oh, dear, lurking in the back here.
0:31:16 > 0:31:19Some pork and leek sausages.
0:31:19 > 0:31:20Rather sad-looking sausage.
0:31:20 > 0:31:23Yeah, they've been in there for, like, four or five days.
0:31:23 > 0:31:26Right, OK, so they may have...
0:31:26 > 0:31:28- Gone out of date, definitely. - What's up here?
0:31:28 > 0:31:29We've got one...
0:31:31 > 0:31:33..two open packs of carrots.
0:31:33 > 0:31:34Ugh, there's some...
0:31:34 > 0:31:37- Bit squidgy, carrots. - Yeah, bit squidgy.
0:31:37 > 0:31:40OK, so they are about two weeks out of date.
0:31:40 > 0:31:44But Rae's got an excuse and, let's be honest, it's one we've all used.
0:31:45 > 0:31:47By the time that I get in from work at night,
0:31:47 > 0:31:49I'm too knackered to want to cook,
0:31:49 > 0:31:52I'm too knackered to want to make a big meal.
0:31:54 > 0:31:55But with a little effort,
0:31:55 > 0:31:58Claer reckons they could turn their supermarket stash
0:31:58 > 0:32:01into a tastier version of their favourite takeaways.
0:32:01 > 0:32:05She thinks the answer is for them to plan their menus for the week,
0:32:05 > 0:32:07which would save them a wad of cash.
0:32:07 > 0:32:11So she's arranged for Gary and Rae to meet Chef Miguel Barclay,
0:32:11 > 0:32:14who specializes in making meals for a pound or less
0:32:14 > 0:32:17by having a larder of basic ingredients,
0:32:17 > 0:32:19shopping savvy and batch cooking.
0:32:19 > 0:32:21I hear that you're quite big into takeaways?
0:32:21 > 0:32:23- Yes.- Yes, we are, yeah.
0:32:23 > 0:32:26And, basically, I'm going to teach you one of your favourite takeaways,
0:32:26 > 0:32:28chicken tikka masala.
0:32:28 > 0:32:33Miguel's version comes at a fraction of the cost, and it's tasty too.
0:32:33 > 0:32:35So, I specialize in doing meals for under a pound.
0:32:35 > 0:32:38But if you want to get this one under a pound, then you're going to
0:32:38 > 0:32:41- have to take the bone out yourself. - OK.- No, that's fine.
0:32:41 > 0:32:45Miguel's tips include buying less expensive ingredients in bulk
0:32:45 > 0:32:47and freezing the results.
0:32:47 > 0:32:50If they do this, they can knock up a delicious meal in minutes,
0:32:50 > 0:32:53as well as putting more cash into their wedding pot.
0:32:54 > 0:32:56If you want to start cooking meals for a pound,
0:32:56 > 0:32:59you're going to have to start overlapping your dishes.
0:32:59 > 0:33:02- Yeah.- So once you've cooked this dish, you know that your next dish
0:33:02 > 0:33:05- is going to have to involve chicken thighs.- Yeah.
0:33:05 > 0:33:08I don't know, imagine you were going to do a nice chicken pie.
0:33:08 > 0:33:09- Ooh!- Yeah.
0:33:09 > 0:33:12Then you're probably going to have mushrooms left over and you're
0:33:12 > 0:33:14probably going to have puff pastry left over.
0:33:14 > 0:33:17So then you could probably do like a mushroom tart the next day.
0:33:17 > 0:33:20And it's like a never-ending cycle of just overlapping ingredients,
0:33:20 > 0:33:24- meal by meal by meal. - All right, brilliant.- OK.
0:33:24 > 0:33:28So, has Miguel convinced our couple to chuck out their takeaway menu
0:33:28 > 0:33:30and get spicy in the kitchen?
0:33:30 > 0:33:33- You could do this.- Yes, I definitely could, I definitely could.
0:33:33 > 0:33:36Be quite easy.
0:33:36 > 0:33:39Gary and Rae may be on first name terms with the takeaway shop owner,
0:33:39 > 0:33:43but have we now got two cooking-from-scratch converts on our hands?
0:33:46 > 0:33:50- Mmm!- Mmm.- That's actually really good.- That's really good.
0:33:50 > 0:33:51Chicken's so...
0:33:51 > 0:33:52- So soft but crunchy as well.- Mmm!
0:33:54 > 0:33:56Do think you're going to be able to make me this?
0:33:56 > 0:33:57No, I think I'm going to make myself this.
0:33:57 > 0:34:00Yeah definitely, it's really good. I really like it.
0:34:00 > 0:34:02Result!
0:34:02 > 0:34:05If Gary and Rae planned their meals more carefully and reined in their
0:34:05 > 0:34:09takeaway habit, they could save an incredible five grand a year.
0:34:11 > 0:34:14As Claer joins them for a drink with Rae's mum and dad,
0:34:14 > 0:34:17she's about to learn how much they spend on socializing
0:34:17 > 0:34:19with their nearest and dearest.
0:34:19 > 0:34:21I know that you like to have a drink
0:34:21 > 0:34:24with your family and your friends, especially.
0:34:24 > 0:34:27And I know that you're a very generous couple.
0:34:27 > 0:34:31- Very generous, aren't they? - Generous. Yeah, most definitely. - Very generous.
0:34:31 > 0:34:36Gary and Rae spent an eye-watering £120 a week on nights out
0:34:36 > 0:34:40and Claer's discovered they use their contactless bank cards to pay.
0:34:40 > 0:34:42I just go like that and go like that and go like that
0:34:42 > 0:34:43- and don't think about it.- Yeah.
0:34:43 > 0:34:48Exactly, and this is why the numbers are adding up.
0:34:48 > 0:34:51Because it's so easy to spend money on contactless and you can't really
0:34:51 > 0:34:54keep track of it, especially if you've had a few drinks
0:34:54 > 0:34:55and you don't often get a receipt.
0:34:55 > 0:34:58- Yeah.- So I've got one idea for you,
0:34:58 > 0:35:00which is, take out the cash that you're going to spend
0:35:00 > 0:35:03on the night out, leave the cards at home.
0:35:03 > 0:35:05And when it's gone, it's gone.
0:35:05 > 0:35:08Then if you want to be generous and buy your friends a round
0:35:08 > 0:35:10then you can, but if you need a drink,
0:35:10 > 0:35:13you'll have to get them to buy you one back.
0:35:13 > 0:35:15Good point, well made.
0:35:15 > 0:35:18Gary and Rae could cut the cost of nights out by a third
0:35:18 > 0:35:20if they followed her advice.
0:35:20 > 0:35:23And it's not last orders from Claer just yet.
0:35:23 > 0:35:26Now, I think your mum and dad will like this one.
0:35:26 > 0:35:29Is, have nights out at friends' houses.
0:35:29 > 0:35:31So, take it in turns, you can all host a different night in your home
0:35:31 > 0:35:33instead of paying lots of money
0:35:33 > 0:35:35to go out to a pub or a bar or a restaurant.
0:35:35 > 0:35:38Everyone can bring a dish, everyone can bring a bottle.
0:35:38 > 0:35:42So instead of spending £20-30 for a meal and a drink,
0:35:42 > 0:35:45you could do it for, you know, less than £10 a head.
0:35:45 > 0:35:49And you're with your friends and you're having a great night.
0:35:49 > 0:35:51- Yeah, why not?- Yeah, I think that's a really good idea.
0:35:51 > 0:35:54It'll save you money, at least 60 quid, what you're spending.
0:35:54 > 0:35:57And you get to talk to people, you haven't got to shout at people.
0:35:57 > 0:35:59That's a good point.
0:35:59 > 0:36:03So, that £6,000, roughly, that you're spending on socializing
0:36:03 > 0:36:05and going out a year, maybe we could cut it in half...
0:36:05 > 0:36:09- Yeah.- ..to £3,000, and then that will give you
0:36:09 > 0:36:13quite a sizeable chunk of money that you could spend on the wedding.
0:36:13 > 0:36:15So that's got to be your motivation.
0:36:15 > 0:36:17You know, when you're in the pub,
0:36:17 > 0:36:20- itching to get your contactless card out...- Yeah.- ..think of the wedding.
0:36:20 > 0:36:21OK.
0:36:23 > 0:36:26And talking of weddings, they don't come cheap,
0:36:26 > 0:36:30with the average one in the UK costing north of 20 grand.
0:36:30 > 0:36:34Claer has got some great ideas on how to keep the price down.
0:36:34 > 0:36:36When it comes to saving money on your wedding,
0:36:36 > 0:36:39I've got to confess, I'm a bit of an expert.
0:36:39 > 0:36:42Because when me and my husband got married,
0:36:42 > 0:36:44we did it on a really tight budget.
0:36:44 > 0:36:47The average couple spends nearly £1,100 on photography
0:36:47 > 0:36:50and just under £800 on entertainment.
0:36:50 > 0:36:54But Claer reckons that's money better spent elsewhere.
0:36:54 > 0:36:56So the first couple of tips I'm going to give you
0:36:56 > 0:36:59involve one of these, the humble smartphone.
0:36:59 > 0:37:01What do we like to do with our phones more than anything else?
0:37:01 > 0:37:04- Take pictures.- Yeah.- So there are now apps that you can get,
0:37:04 > 0:37:06when you send out the wedding invitations, you can tell people
0:37:06 > 0:37:09about the app and your password, there are lots of different ones,
0:37:09 > 0:37:12and then, as they're taking pictures throughout the day,
0:37:12 > 0:37:14they can be uploading the pictures and the videos.
0:37:14 > 0:37:17So that means not only do you not need to have
0:37:17 > 0:37:21a professional photographer, which could cost thousands of pounds,
0:37:21 > 0:37:24you can actually get some really, really nice quality pictures
0:37:24 > 0:37:26that everyone's been involved in taking and
0:37:26 > 0:37:28get them all made up into an album.
0:37:28 > 0:37:32- Afterwards, second way that you can use your phone, music.- Mmm.
0:37:32 > 0:37:35- Make a wedding playlist.- Yeah.
0:37:35 > 0:37:38Then you don't need to pay to have an expensive DJ.
0:37:39 > 0:37:42That's 24-carat money-saving advice.
0:37:42 > 0:37:44And there's more.
0:37:44 > 0:37:47When is the best time of year to get a really good deal on champagne?
0:37:47 > 0:37:52- Be around Christmas and New Year's. - Exactly.- Always a lot of bubbles.
0:37:52 > 0:37:57Buy the champagne then, keep it - don't drink it! -
0:37:57 > 0:37:58until the wedding.
0:37:58 > 0:38:00So, I'll drink to that.
0:38:00 > 0:38:02- Cheers!- Thank you.- Thank you.
0:38:02 > 0:38:04And the icing on the wedding cake,
0:38:04 > 0:38:06get married midweek rather than Saturday
0:38:06 > 0:38:10and you could cut in half the cost of hiring that dream venue.
0:38:10 > 0:38:15If Gary and Rae followed Claer's advice, they could save £1,900.
0:38:15 > 0:38:18So time to tot up whether we've saved them enough money
0:38:18 > 0:38:22to help them clear their debts and feather their matrimonial nest.
0:38:23 > 0:38:26As well as that 1,900 on their wedding,
0:38:26 > 0:38:29£200 on recycling their console games,
0:38:29 > 0:38:32£389 on cutting back on gifts,
0:38:32 > 0:38:35a whopping three grand on bank charges,
0:38:35 > 0:38:38£6,432 a year on Gary's car,
0:38:38 > 0:38:40five grand on their yearly food bill,
0:38:40 > 0:38:42and three grand on socializing.
0:38:42 > 0:38:48That's a grand saving of £19,921.
0:38:48 > 0:38:51Not forgetting all the incredible advice Claer has given
0:38:51 > 0:38:54our young lovebirds, which will help set them up for life.
0:38:56 > 0:39:00This whole experience has been really, really enlightening.
0:39:00 > 0:39:03We are definitely looking at getting married soon.
0:39:03 > 0:39:04I thought the way we were going,
0:39:04 > 0:39:08it would take three, four years, maybe even more.
0:39:08 > 0:39:09But with Claer's tips,
0:39:09 > 0:39:12I think we can definitely achieve it within the next year or so.
0:39:12 > 0:39:15- I want to get married to you as soon as I can...- Aw!
0:39:15 > 0:39:18..so we can get our future started as soon as we can.
0:39:18 > 0:39:21So, yeah. Yeah. That's what I want.
0:39:21 > 0:39:22- Thanks, Gaz.- That's all right.
0:39:27 > 0:39:30Well, I'm delighted to say that Gary and Rae are with us
0:39:30 > 0:39:33along with our resident personal finance guru Simon Reid.
0:39:33 > 0:39:36Hi, Gary, hi, Rae. Good to see you again, Simon.
0:39:36 > 0:39:38And you, Dom.
0:39:38 > 0:39:40Now, you said earlier on in that video that we just watched
0:39:40 > 0:39:43since moving in together, you've been struggling with your finances.
0:39:43 > 0:39:46- Yeah.- Yeah.- How has this whole experience helped you?
0:39:46 > 0:39:48It's helped us a lot, it really has.
0:39:48 > 0:39:51The food shopping, we've completely changed around.
0:39:51 > 0:39:53I mean, we was doing 70... £60-70 a week.
0:39:53 > 0:39:57- A week, yeah, we were doing that. - We're now lucky if we do that month.
0:39:57 > 0:40:00We've started bulk buying. I mean, we completely blitzed the freezer,
0:40:00 > 0:40:03took everything out that we wasn't going to eat.
0:40:03 > 0:40:04It sounds bad, but to bin it.
0:40:04 > 0:40:07And completely, completely start from scratch.
0:40:07 > 0:40:10- Yeah.- The stuff that Miguel taught us also, so the curries, we do.
0:40:10 > 0:40:12Yeah, curries, and his book's been really handy.
0:40:12 > 0:40:14We do at least once a week now.
0:40:14 > 0:40:16At least once a week,
0:40:16 > 0:40:19- we do a proper, home-cooked, fresh, from-scratch meal.- Yeah.
0:40:19 > 0:40:21This is great stuff, isn't it Simon? Really positive.
0:40:21 > 0:40:23Well, it's fantastic stuff and it's you know,
0:40:23 > 0:40:25it's quite simple when you think about it.
0:40:25 > 0:40:27Bulk buying, planning what you're eating,
0:40:27 > 0:40:30you know, using the freezer for stuff that you've made rather than
0:40:30 > 0:40:32- for ready meals that never get eaten.- Yeah.
0:40:32 > 0:40:35Do you know, a lot of this though, it should be common sense, shouldn't it?
0:40:35 > 0:40:37And you know, in fairness, common sense is not that common.
0:40:37 > 0:40:40- Do you see a lot of this, Simon? - I see a lot of this with couples.
0:40:40 > 0:40:43You know, they don't talk about money, because it's a bit boring.
0:40:43 > 0:40:46You know, it can be a bit depressing to talk about it, but, you know,
0:40:46 > 0:40:49when you're a couple, you've got to share the financial responsibility.
0:40:49 > 0:40:52- Share, yeah.- But I think Simon's made a good point about
0:40:52 > 0:40:55looking and being aware of your finances.
0:40:55 > 0:40:59You were throwing money away for overdrafts, unauthorized overdrafts.
0:40:59 > 0:41:01Are you looking at those bank statements more carefully?
0:41:01 > 0:41:04- Yeah, definitely. Both, we both... - The amount of money
0:41:04 > 0:41:07that we've wasted on unorganised overdrafts is horrendous.
0:41:07 > 0:41:09- Horrendous, yeah. - We've now both got that sorted.
0:41:09 > 0:41:12- Both got planned overdrafts. - We've both got planned overdrafts,
0:41:12 > 0:41:13we've sorted that out with the bank.
0:41:13 > 0:41:16It was a big kick that we both needed.
0:41:16 > 0:41:17It was the kick we needed to just...
0:41:17 > 0:41:20- We knew we were doing it wrong. - Yeah.- We but we were just...
0:41:20 > 0:41:21We didn't want to own up to it.
0:41:21 > 0:41:23There was so much denial that we both had.
0:41:23 > 0:41:25- More me, I'll admit to that. - Yeah, probably a bit more you.
0:41:25 > 0:41:29There's an awful lot of people in the same situation as you.
0:41:29 > 0:41:33Why do you think you got into such a bad rut? What caused that?
0:41:33 > 0:41:35I think it was just naivety.
0:41:35 > 0:41:39I think it was just us being naive about it.
0:41:39 > 0:41:41I've never had the amount of money I had coming in.
0:41:41 > 0:41:44- We were just...- I've never, ever looked at my account and gone,
0:41:44 > 0:41:47"I've got, like, four digits sitting in there, wow, this is brilliant."
0:41:47 > 0:41:51I think it's a case of what do you need, versus what do you want.
0:41:51 > 0:41:54- Yeah.- Yeah.- It was.- It was constantly burying our head.
0:41:54 > 0:41:57- This was just the wake-up call you needed, wasn't it?- Yeah.- It was.
0:41:57 > 0:41:59And it helped our relationship as well.
0:41:59 > 0:42:01It did, it really helped our relationship a lot since.
0:42:01 > 0:42:04- We're a lot happier than we was six months ago.- Yeah.
0:42:04 > 0:42:07- Everyone's a winner. - Everyone, yeah.- Everyone's a winner.
0:42:07 > 0:42:09It's winner, winner, home-cooked chicken dinner!
0:42:09 > 0:42:11Gary, Rae, thank you for sharing your story
0:42:11 > 0:42:15- and, Simon, thanks as always. - Yeah, good luck to you. - Thank you very much.
0:42:15 > 0:42:17If you're saving up for something big, like a wedding,
0:42:17 > 0:42:20or you need some good financial advice form one of our experts,
0:42:20 > 0:42:23like Simon, send us an e-mail to...
0:42:25 > 0:42:27And if it's more money-saving tips you're after,
0:42:27 > 0:42:30here's where to go to get some nuggets of advice.
0:42:31 > 0:42:36Our website has everything you need to sort out your spending.
0:42:36 > 0:42:38We've teamed up with the Money Advice Service
0:42:38 > 0:42:41to bring you easy-to-use money-saving tools
0:42:41 > 0:42:42to plan your budget,
0:42:42 > 0:42:45calculate the cost of your car or credit cards
0:42:45 > 0:42:48and give your money a complete health check.
0:42:48 > 0:42:51Download them at...
0:42:57 > 0:43:00Well, Simon is still here to help answer some of the questions
0:43:00 > 0:43:02we've had from people we've met today.
0:43:02 > 0:43:05Susan wants to know - and I bet a lot of parents can relate to this -
0:43:05 > 0:43:08how can she stop her student son going overdrawn?
0:43:08 > 0:43:11That's a good question. Young people, students,
0:43:11 > 0:43:13they want to have fun, they're going to spend money.
0:43:13 > 0:43:15One thing I always suggest to young people is get a part-time job,
0:43:15 > 0:43:18which will help their financial situation, but also help them
0:43:18 > 0:43:20- learn the value of money. - Get a job, I like that one.
0:43:22 > 0:43:26Brian wants to know will he lose his pension if his company goes bust?
0:43:26 > 0:43:27Simple answer, no.
0:43:27 > 0:43:30- Really?- Used to be the case that pensions were at risk,
0:43:30 > 0:43:33there were lots of things back in the ancient times of history where
0:43:33 > 0:43:34people did lose their pensions.
0:43:34 > 0:43:38Now they're all protected by a Government scheme,
0:43:38 > 0:43:42so if a company goes bust, your pension scheme should be protected.
0:43:42 > 0:43:44Only up to about 90% of the value, but it will be fine.
0:43:44 > 0:43:48And Pat says, "How can I earn more interest on my savings?
0:43:48 > 0:43:51"I've got four grand in a cash ISA, paying me almost diddly-squat."
0:43:51 > 0:43:54You know, we're all worried about the lack of interest
0:43:54 > 0:43:57we're getting on our savings, rates have been at record lows for years.
0:43:57 > 0:44:00My only advice is really, walk down the high street a bit
0:44:00 > 0:44:02and see what else someone else is offering.
0:44:02 > 0:44:04- You're bound to get a better rate. - Shop around.- Shop around.
0:44:04 > 0:44:06Great advice, Simon.
0:44:06 > 0:44:10Well, that's it from us today, thank you to Simon and all our guests.
0:44:10 > 0:44:12And thanks to you at home too.
0:44:12 > 0:44:13And I hope you picked up loads of tips
0:44:13 > 0:44:16that will help boost your piggy bank.
0:44:16 > 0:44:18- But until next time, cheerio. - Bye-bye.