Family finances on the rise

The average wage is rising six times faster than the price of goods….

The average wage is rising six times faster than the price of goods in a plight to increase family finances, official figures released this week have suggested.

According to the Office for National Statistics (ONS), inflation has fallen to just 0.3% due to the reduced cost of food and fuel and aims to reduce financial pressures felt in family households.

The average wage is also 1.9% higher than 12 months ago; giving British families even more disposable income.

The year of the consumer

Prime Minister David Cameron noted that with the combination of falling prices for food and fuel and increased wage packets, families have more money in their pockets but so too does the British economy.

The dramatic slump in the price of oil and continuous supermarket food price wars means the financial pressures placed on the average family household are finally easing – making 2015 the “year of the consumer” according to Chief UK Economist at Berenberg Bank, Rob Wood.

“We have for some months been forecasting 2015 to record the strongest consumption growth in a decade,” he said.

“Improving pay, along with falling petrol and food prices, should combine in a powerful cocktail that puts the fizz back in the UK recovery.”

Impacting the next generation

Yet, while the situation may be improving for Britain’s parents it is vital that the importance of solid financial education is not overlooked.

Personal finance education (PFE) was introduced into secondary schools as a mandatory part of the curriculum last September and this aims to equip the next generation with the financial skills and knowledge they need to avoid the difficult situations their parents have been placed in.

While today’s parents missed out on this education, there are still ways for them to learn how to better manage their money and this could help reduce the impact of any future economic changes within the country.

Current improvements to wages and lower inflation will help in this regard and when combined with high quality financial education for youngsters means there is no reason why Britain’s financial future can’t be a positive one.

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