The importance of money management in everyday life

Sam Foster — Fri, 31 Jan 2014 09:15:22 +0000

It’s important to learn the ins and outs of money management from a young age. Teaching children about finance and money management will help them to save and spend sensibly in later life.

When is the best time to learn about money management?

Although it’s wise to learn financial skills from a young age, the best time to teach children about money management is before they reach high school. This is when a number of kids begin to have their own financial responsibilities and is often the age when children get a part-time job.

Saving over time

Those who begin saving at an earlier age will have a lot more money to play with in later life. The likes of school and college fees, university fees and house deposits don’t pay for themselves. Saving just a small amount a day can add up over the years and those who save regularly will reap the rewards.

Budgeting

Money-management has a lot to do with budgeting and those who know how to budget are those who are able to save.

For example, spending £1.50 on a coffee each and every day of the year will amount to £1000 over twelve months. If you’re trying to save towards something, cutting down on unnecessary luxuries like this is certainly one way to boost your cash-flow.

Boosting your credit score

In order to build a good credit history and get a good credit score, you must prove that you are able to repay borrowed credit. This means sticking to all repayment deadlines for direct debits, bills, credit cards and loans.

Having a good credit score will make it more likely that you’re accepted for credit agreements and loan applications in the future but there are unsecured loans for people with bad credit too so you don’t need to feel excluded if you’ve previously been refused a loan.

Avoiding debt

Money management is also important when it comes to avoiding unnecessary debts. From student loans to credit card bills, if you don’t know how to manage your money then you could find yourself in a large amount of debt.

If you can’t pay this debt back, interest rates will continue to build and you may face bailiff action. Keeping on top of your finances and tackling debt head-on You can get free debt advice by visiting the money advice service.

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Secure Trust Bank PLC Acquisition of Evlo

Sam Foster — Fri, 08 Jun 2012 08:27:25 +0000

Secure Trust Bank PLC (“STB”) is pleased to announce that it has acquired today 100 per cent of the shares in Evlo Holdings Limited and its wholly owned subsidiaries, Evlo Limited and EvloLending Limited (together, “EDL”, “Evlo” or the “Business”). EDL was controlled by Alchemy Partners Nominees Limited (“Alchemy”) and the EDL management team. STB has acquired Evlo for consideration of £1. Upon acquisition STB has immediately provided funding so that EDL can redeem the remaining circa £34 million of subordinated debt principally held by Alchemy. A payment of up to a maximum of £1.5 million will be made to the management team of EDL in March 2013, subject to achieving certain performance targets. The upfront cash payments and the additional regulatory capital requirements arising from the enlarged STB balance sheet will be funded from STB’s existing resources with additional regulatory capital requirements being satisfied by fair value adjustments arising from the transaction and a capital injection of up to £5 million from Arbuthnot Banking Group PLC (“Arbuthnot”) in the form of a subordinated loan. The subordinated loan is on the same terms as the existing STB subordinated loan from Arbuthnot. STB has received all of the necessary regulatory approvals in relation to this transaction. STB will consolidate EDL for regulatory capital purposes. Evlo is a provider of unsecured loans to a customer base predominantly in lower income groups and operates through a national network of 25 offices where loans are originated, serviced and collected. The Business will continue to trade using the “Evlo” brand. Evlo had a loan book of £63.9 million as at 31 December 2011 and generated underlying operating profits before tax and subordinated debt interest under UK GAAP of £4.6 million (£2.8 million under IFRS) for the year ended 31 December 2011 and an estimated £1.8 million (£1.2 million under IFRS) for the four months ended 30 April 2012. The difference between the IFRS and UK GAAP profits predominately relates to the timing of the recognition of origination fee income. EDL has significant brought forward tax losses which it will be able to utilise following the acquisition. STB is providing EDL with a new loan facility of circa £37 million to refinance EDL’s existing bank debt and to fund future loans. This will enable STB to utilise surplus deposits referred to in previous disclosures. The acquisition is expected to be earnings enhancing for STB in the current financial year. Paul Lynam, Chief Executive Officer of Secure Trust Bank PLC, said: “The acquisition of Evlo represents a significant strategic development for Secure Trust Bank. We will be able to broaden our distribution channels and our routes to a wider market, with particular emphasis on direct and technology-based platforms and subsequently diversify and extend our lending portfolio. “The strong synergies between Secure Trust Bank and Evlo’ customer bases will also mean that opportunities to cross-market products will be open to both companies.” Chief Executive Officer of Evlo, Terry Williams, said: “We are delighted that we have concluded this deal with Secure Trust Bank. It creates a good opportunity for all of us and opens the path for Evlo to benefit from the strong position we have built up over the last six years and expand the business – without being constrained by the wholesale funding markets. We can also see opportunities in the future where both companies will benefit from synergies between our customer bases and the plans to enhance the range of products that can be offered to these customers.”

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The importance of money management in everyday life

Secure Trust Bank PLC Acquisition of Evlo