What They Don't Teach You About Money: The Instant Top Ten Bestseller

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Yeah, I’m sure you are. So someone’s asked what factors should I consider when deciding how much to keep in cash for an emergency fund? For example, I aim for six months fixed outgoings, but with no real rationale. Well, Deborah, the FT’s motto is: without fear, without favour. But I will confess to feeling slightly scared sitting across the table from a dragon. (Laughter) Well, you can be good at more than one thing. And you clearly are. Algy, It’s been so lovely to have you in the podcast studio and catch up again. Feels like old times. Claer Barrett, the FT’s consumer editor, and Aimée Allam, the director of FT Flic, the FT’s Financial Literacy and Inclusion Campaign, answered your questions in the comments below this story.

It could be something like that and also at the moment it could be to do with inflation in cost, something like that, something to do with supply chains. It could just be to do with fears about the economic cycle. So we have a lot of housebuilders and car dealers, which are extremely cheap by their historic standards because we’re very fretful about the recession. But also we’ve seen quite a few companies taken over because there are other people out there who are looking at them now and saying, well, actually . . .They’re the numbers that tell you whether or not you’re making any money. So your turnover, are you selling enough? OK. That’s the business. I’m selling enough to make it a business. Your gross profit says, actually at the, you know, I’m selling it for more than it costs me. And then your net profit says, OK, well, I’ve got all those overheads, you know, am I actually paying for the cost of running the business? So although I made money on the goods, am I making enough money to pay for all of the costs of the business? While the cost of apps, smart devices and broadband is not something every family can afford, these are future financial lessons that every child needs to be taught. But the main thing is it’s really good to just know what the common pitfalls are because you will have to put systems in place to stop yourself from falling into them — knowing about them isn’t enough. And also realising that you’re not different because one of our biases is that we all think biases don’t apply to us, which is the irony. (Laughter) Children need to be able to operate confidently in today’s increasingly cashless society,” she says. “If you’re not enabling these skills at an early age, the risk is they get launched into the adult world of easy credit and easy access to funds, and end up in a bad place.”

But the pandemic — and the financial uncertainty that has resulted — has highlighted the costly gaps in people’s knowledge. According to the World Bank, two out of three people globally are financially illiterate, including one out of three people in the UK. Lots of dividends were cut, but they still did hold up better than the market overall. And then the next one is momentum, which outperformed by 262 per cent.

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So I think in the UK market there’s an amazing publisher called Relx, which controls huge amounts of data. It’s an academic publisher. Likewise, the piggy banks I bought for her five-year-old twin brothers are gathering dust on the shelf. When my brother and I were their age, we hoarded coins to buy penny sweets in the local post office. Today, there are very few places (in central London, at least) where children can spend small amounts of their own money. It is very good, yeah. I might be a bit generous with how much I’m giving myself to spend, but I will definitely start doing that next pay cheque. Welcome to Money Clinic, the weekly podcast from the Financial Times about personal finance and investing. I’m Claer Barrett, the FT’s consumer editor. And this week we’re coming to you live from the Great Hall of Bristol Grammar School as part of the Bristol Festival of Economics! (crowd cheers) Wow, that’s a real welcome. Thank you very much. Now, tonight, we’re gonna focus on how economics affects our everyday financial lives. Now, thank you to everybody who’s already submitted a question for our expert panel. I’ve got those. And we’re hoping to squeeze in some more from the floor as the evening goes on. Now, first, the people who I’ve chosen to help answer your questions about money, economics, life, the universe and everything are firstly, Sarah O’Connor, the FT columnist, and Susannah Streeter, head of money and markets at the investment platform Hargreaves Lansdown. (crowd cheers)

But I stumbled into financial journalism whilst trying to be a successful illustrator. So I don’t I don’t know how that works, but . . . Presented by Claer Barrett. Produced by Persis Love. Our executive producer is Manuela Saragosa. Sound design is by Breen Turner and Jake Fielding, with original music from Metaphor Music. No, you have to be a stable business. And oil companies aren’t stable. So you, actually you’re getting a high yield because the risk of that dividend disappearing is quite high. You’re not looking into this kind of dull and conservative story that’s super attractive. This is an audio transcript of the Money Clinic podcast episode: ‘Investment masterclass — Deborah Meaden on her life in business’ All of these things suggest lots of ways in the book that people could, you know, just take those, put them on their financial to-do list and get going. Just try and do one thing with your money if you can every week. Don’t feel like you’ve got to sort it all out in one go because that’s just totally overwhelming. Just be realistic and say, “OK, this week I’m gonna look at that. Next week, I might have a look at what credit card I could apply for.” Don’t try and do it all at once.Actually, I’ve got a different question. So when you have money, how do you make more? Well, it’s a bit of a broad question. Well, they’re not far away. Yes, of course. I grew up near Bristol, and certainly I’ve lived actually in the city for nearly three decades now. So obviously whenever I come here, they support me. So if the economy isn’t growing, then the pie isn’t growing, basically. I mean, Liz Truss talked about the pie. And it became very annoying and a weird mixed metaphor. But the the basic point holds, I think, that everything becomes a bit harder if things aren’t growing, we end up with these very difficult fights over how to divide it and who gets how much. Whereas in the kind of nice decade of the 90s, we had growth at like steady 2.5, 3 per cent a year. Wages were growing kind of steadily, but just slightly above inflation and everything just kind of becomes a bit easier. Well, thank you very much, Deborah Meaden. We have very much enjoyed our podcasting moment with you. It’s been an absolute pleasure having you. Financial literacy education gives young people the foundations for future prosperity — and can help economically disadvantaged people out of deprivation. Join the FT Flic campaign to promote financial literacy in the UK and around the world