Chris Skinner
Commentator, CEO of The Finanser and best-selling author
We are in a cost of living crisis. Energy bills have gone through the roof; essentials from food to shampoo have doubled in cost; and the idea of a holiday, for many, has become a mere dream.
Gas and oil prices have increased, and the supply of basics like wheat is squeezed tight. For many of us, finances are increasingly difficult to manage — especially for those losing jobs, becoming redundant or already heavily on credit. What should we do?
Tech-enabled personal financial management
These days, through apps, there are clever ways to manage money. At the basic level is what people call personal financial management (PFM). PFM analyses your financial transactions and highlights where you are spending too heavily and saving too little. You need to spend smarter to live smarter.
However, this is assuming you have income coming into your account and can afford to live. What happens to those who have no income or rely on a food bank? Do they even have access to a bank account? What if you are unbanked, have no apps and no access to PFM — what do you do?
Accessing financial services
UK Government reckons that over a million citizens have no access to financial services. That means that you have to do everything with cash and coins. More privileged people can get loans or even have savings. Those without that access need to pay everything directly and, with the current cost of living crisis, that is difficult.
PFM analyses your financial transactions and highlights where you are spending too heavily and saving too little.
Available financial solutions
Thanks to the rise of technology in banking, there are many new services that can help. There are services like Wise, which offer pure payment services without requiring a bank account. Klarna allows you to Buy Now and Pay Later. Coinbase offers you a cryptocurrency account, even if you only have a few pounds and, from that account, allows you to make payments using Bitcoin or other coins.
Vision for inclusive finance
The world is changing. Every day, access is growing. You need to know where and look for it. Finally, my vision is for money to end up looking after you; and you won’t need to think about it. Your financial provider will be able to tell you where your money is, how it is being used, the future outflows and inflows to and from your account, where your risks are and more. With the ongoing evolution of financial services, money management should include everyone.