Financial Capability
What is Financial Capability?
- The motivation to efficiently manage finances
- Day to day management of finances
- The ability to understand and make efficient selection of financial products and services including comparing costs
- Planning ahead for retirement, other life transitions and unexpected events, for example, by saving
The Basics of Financial Capability
- Understand bank statements, bills, payslips and other basic financial records
- Understand the implications of borrowing money, paying back, defaults, interest charges
- Manage a day to day budget including prioritising expenditure
- Use cash and non-cash methods of payment
- Understand tax and national insurance issues and how it affects wages
- Seek advice when needed, knowing where and having the confidence to ask
- Money Advice Service: Credit Card Calculator