Nothing Fancy just Good Financial Information

Living on a low income, keeping loans under control and financial abuse are just three of the issues covered by a recession busting leaflet launched today by YWCA (www.ywca.org.uk). The guide is aimed at young women and features tips on saving money, low budget shopping and cutting costs.

The charity is concerned that women living on low incomes are currently finding it even more difficult to balance their limited weekly income. It believes they are getting into even greater financial difficulties.

“The women we work with have very limited incomes” says Sarah Payne, Chief Executive YWCA. “Within this leaflet we provide key pieces of financial information which, we hope, will help these women manage their very limited resources better.”

“In the current economic climate everyone is worried about money. But young women in some of the poorest communities are particularly vulnerable. They tend to be on low incomes and sometimes lack the skills to manage their limited funds” Sarah continues. “Young mothers and teenage girls, who have had to leave unhappy homes, can find themselves suddenly living independently with little or no support. They find themselves in charge of household bills, with responsibilities that they’ve never had to think about before. We hope this leaflet will help them and also highlight that YWCA is here to support them”.

Women are often in work that pays so badly they experience ‘in-work poverty’. Nearly two thirds of low paid workers are women. Sectors with the highest proportions of minimum-wage jobs are female dominated. For example retail, hospitality, social care, hairdressing and cleaning.

According to the Trade Union Conference (TUC) it is likely that women’s jobs will be affected more than in past recessions. More women have been made redundant since the beginning of 2008 than men. [TUC (2009) Women and Recession: How will this recession affect women at work?]

In times when money is scarce women on low incomes are more vulnerable to credit and store card offers, especially if they have young children. Often they do not realise the expensive interest charges they will incur if they do not pay off their account each month.

Linda Jack, Youth Policy Adviser at the Financial Service Authority (FSA) says “I welcome this excellent and timely initiative from YWCA. The young women they work with are likely to be disproportionally affected by the credit crunch and will need as much support as possible to be able to effectively manage their money. This leaflet, alongside the outstanding support YWCA centres already offer to so many young women, will be a lifeline for those struggling to make ends meet and make the most of their money.”

Some women attending YWCA centres have talked about boyfriends, having lost their jobs, taking money from them without asking and not paying them back or using their credit cards without permission – in some cases a form of financial abuse which is putting them in debt. The leaflet therefore looks at this issue and suggests ways to avoid falling into this trap.