Unfortunately, scams of all kinds are becoming increasingly common, and it’s not just the elderly who are vulnerable. Millions of people in the UK are taken advantage of each year, with fake investment schemes and phishing emails being among the most common methods used by scammers. These scams can have a devastating impact on people’s finances, with victims left with empty bank accounts and damaged credit ratings. In 2021 alone, an estimated £1.2 billion was lost to scams.

So how can you protect yourself from falling victim to these scams? In this article, we will provide you with some practical tips to help you keep your money safe.

Be cautious of unsolicited phone calls, emails and text messages

One of the most common ways scammers try to trick people into giving away their money is through unsolicited phone calls, emails, and text messages. These messages often promise quick and easy money, which can be particularly tempting for those who are struggling financially.

To protect your savings, you should be cautious of any unsolicited communication you receive. Don’t disclose your personal or financial information to anyone you don’t know and trust. If you receive a message that seems suspicious, report it to the Information Commissioner’s Office, which has the power to take enforcement action against those involved in the scam.

Use strong passwords and security features

Another way to protect your savings is to use strong passwords and security features on your accounts. The government’s Cyber Aware campaign recommends using a combination of letters, numbers, and symbols on your passwords to make them difficult to crack. Two-factor authentication provides an additional layer of protection by requiring a second form of verification in addition to your password.

Familiarize yourself with the technology used by merchants

As technology continues to evolve, so do the methods scammers use to steal your savings. To protect yourself, it’s important to understand the technology used by merchants for their transactions. For example, many restaurants, cafes, and pubs use mobile card machines to process payments on the go. These devices must comply with the Payment Card Industry Data Security Standard (PCI-DSS) to ensure that cardholder data is protected.

Online merchants use virtual payment terminals to process payments online, and it’s essential to only interact with trusted businesses to keep your savings safe. As shopping fraud schemes are on the rise in the UK, familiarizing yourself with the technology merchants use can be an effective way to protect yourself.

Choose banks with comprehensive fraud protection

Many banks in the UK offer fraud protection services as a standard feature, but it’s still important to do your research and check that the bank holding your savings has the necessary fraud protection measures. The Financial Ombudsman Service website offers resources regarding local banks’ anti-fraud policies. Additionally, you can check if your bank participates in the Confirmation of Payee scheme, which protects customers from Authorised Push Payment scams.

In conclusion, scams can have a significant impact on your finances, but by taking preventative measures, you can reduce your risk of being conned. It’s essential to be cautious of unsolicited communication, use strong passwords and security features, familiarize yourself with the technology used by merchants, and choose banks with comprehensive fraud protection. By following these tips, you can keep your hard-earned savings safe and secure.

When talking to children about the cost of living crisis, it’s important to use language that is appropriate for their age and understanding. Remember, the goal is to help children understand the situation in a way that is informative and supportive, not to scare them.  It’s a good idea though to help children understand that while things may be tough right now, there are ways to cope and things will get better in the future. Financial matters can be complicated and it’s important to keep things simple and age appropriate.  That way things are less likely to be misunderstood.  Also, you want children to enjoy learning, so keeping the level appropriate and making things fun are really helpful.

 

As the rising cost of living continues to stretch budgets with little signs of slowing down, it can be an extremely worrying time for many households across the country. This is especially true for families and can create questions that are difficult for parents to answer.

Parents naturally want to protect their children from any worries or anxieties about the world, but it’s all too easy for children to pick up snippets of what’s happening in the news in various aspects of their life – whether it’s from the playground or conversations overheard at home. Encouraging an understanding of finances and financial independence is key, so it’s well worth spending time working on that.

Rhiannon Philps, a personal finance expert at NerdWallet, believes that, rather than avoid the difficult conversations altogether, it’s best to talk to children and help them gain a better understanding of the current climate, as it may help them feel more at ease hearing it one to one from a trusted parent or guardian.

Below, Rhiannon discusses how parents can tackle the topic of money with young family members, and how to be realistic about any financial sacrifices parents may need to take over the coming months:

1. Strike the balance

“Honesty is always the best policy, and while ensuring your child is aware of the realities of the rising cost of living is important, it is also crucial to avoid unnecessary panic or worry, and strike the right balance between explaining the seriousness of the situation without alarming them.

“At the moment, while it is not necessary for a child to be too concerned about the intricate details of budgeting and saving, it’s a good idea to make your child aware of the increase in heating, petrol, groceries, and other essential items.

“Be clear with children if the current climate means you have to cut back on some of their favourite brands at the supermarket, or if you need to take them to more budget-friendly clothing stores to pick out new items. Reassure them – but don’t promise – that this should only be temporary and help them to understand how important it is to appreciate all that they do still have, rather than what they don’t.”

2. Be realistic

“It’s wise to prepare them sooner rather than later as certain sacrifices may need to be made over the coming months, like cutting back on weekend or half-term activities, such as swapping pricey pastimes like a cinema trip for a day exploring local walks or visiting a local free-entry museum.

“This will hopefully help children realise that parents don’t have access to unlimited wealth and that you don’t need to spend a lot of money in order to have a fun time as a family.”

3. Be wary of shock value

“More often than not, children will consume a lot of information from their peers or social media platforms which can often be written to shock and generate headlines. Both of these are notorious for exaggerating or expanding on the facts of a story or subject, and should not be how a child is gaining knowledge of the current crisis.

“Depending on their age, sit your child down for an honest conversation on the issues that are most concerning to them, and try your best to reduce any concerns or worries that they have heard from peers or online.

“Point them in the direction of child-friendly websites or programs that help outline the most pressing issues in easy-to-digest language, and reassure them that you are always available to answer or tackle any questions or concerns they have.”

4. Teach them about budgeting

“Parents can use the cost of living crisis as an opportunity to educate children on the importance of budgeting and saving for a rainy day. Highlighting different issues surrounding inflation, energy bills, how interest rates affect things like mortgage repayments and credit cards, and even how inflation works will give them a better perspective on the crisis and is something they are unlikely to be exposed to within school settings.

“For older children, this is also an opportunity to help guide them to set up their own financial accounts, such as a children’s bank card or a prepaid card. This can help them learn how to budget, manage their finances, and understand the satisfaction associated with saving money to purchase something for themselves.

“While some children are simply given pocket money or an allowance, now is a great opportunity to appoint age-appropriate chores in order to actually earn the money themselves.”

5. Involve children in making cost-effective savings around the house

“Budgeting doesn’t have to be boring, and there are a multitude of ways you can involve children with budgeting tasks around the house.

“Try setting children a task to plan budget-friendly meals with a certain amount of money, or get them involved in cooking large batches to freeze for a later date as this helps teach them an effective way to save money and reduce food waste which will be beneficial in later life.

“In order to help them understand the energy crisis a little more, it’s also worth setting them the task of ensuring no electronic devices or switches are left on unnecessarily around the house – which can also be incentivised with rewards.”