Numeracy is the strongest predictor of financial literacy, but many people avoid dealing with their credit cards, tax, salaries, pensions and bills because they feel anxious about maths.
Mrudula is the founder of Million Goals financial coaching and recognises the importance of numeracy for financial understanding and wellbeing.
Among those she has helped is Ionut, a driving instructor who says things are “100% more manageable” since taking control of his financial situation.
Mrudula is also a Numeracy Champion and was trained with funding from South Yorkshire Combined Authority via the Multiply programme.
In the run up to National Numeracy Day – The Money Edition, Mrudula and Ionut spoke to us about the importance of financial literacy and how it’s never too late to learn.
Mrudula says:
Numbers are a part of daily life. We need not all be mathematicians, but it’s very important for all of us to have the basic skills to feel comfortable and confident to go ahead with our daily lives.
I’ve heard people say: “I feel very anxious about money” or “I feel terrified when I think of money.” It’s about dealing with these emotions and learning basic skills to understand money and basic ways to manage it, so it doesn’t impact our wellbeing. I think it’s very important to start building on that very early on.
With money management, one part is learning the skill and the second part is actually putting that into practice. That is something that you have to do on a daily basis, reflecting and seeing what worked and what did not work – it’s a lifelong practice.
It feels very satisfying to know that I can create a positive impact on someone’s life. Million Goals is all about empowering individuals to feel more confident with numbers.
What resonated with me about National Numeracy was the goal of wanting to educate people about numbers and remove any fear around them. I thought: “I want to be a part of this.”
The myth buster activities from the Numeracy Champion training I did have been very useful, I’ve been using them in my group workshops and one on one sessions.
They show how you can break the ice and try and change the perspective about numbers and money because that can be a very difficult topic to start talking about.
I also recommend National Numeracy resources to others, including the National Numeracy Challenge.
Financial literacy is not as complicated as it sounds and you can learn that skill at any age. It doesn’t matter what stage you are at in your career either, it’s just another skill you’re adding to make your life better.
Ionut’s story
Ionut had always felt comfortable with numbers but lacked an understanding of money management, where utilising numeracy skills is essential. Realising he needed to take control of his financial situation, he sought help from Mrudula.
Today, having learnt more about budgeting, keeping a track of money and developing the right mindset, he says things are “100% more manageable” and even employs his newfound skills in running his own business.
Ionut told us his incredible story in the run up to National Numeracy Day as well as how, since becoming more financially literate, he is keen to emphasise the importance of financial understanding to younger generations.
Ionut says:
Aged 22 I moved to the UK from Romania, so it was a massive change for me. From day one I should have been more interested in what options I had moneywise, such as savings accounts.
But I wasn’t, it was just a case of relaxing and not really looking into it as I wasn’t used to looking into it. I think it’s a generational issue, I think people in their mid-30s now will have bumped into the same problem.
Every job involves numbers in some way
I have been a driving instructor for the last few years. Before that, I was a team leader, managing 100 people in a warehouse, that job came with a lot of numbers and reports.
You would’ve needed to know at least basic maths, not necessarily at an advanced level though. I’m quite comfortable with numbers, I use them every day more and more now. It was never a problem to understand them, especially if I saw the purpose.
Today I use numeracy in many ways as a driving instructor. Obviously, I need to manage my income and expenses. I show students various statistics and numbers are involved in every action, such as ‘this sign shows 300 yards away.’ They also appear in road names and of course in different speeds.
Deciding to improve my understanding of money management
My numeracy improvement journey started with Mrudula being my pupil. She was telling me about her financial coaching and I said learning about finances was something I’d never had a chance to do. So then I ended up being her pupil!
It was a big eye opener but also it was a sad eye opener because I realised that if I had done this 10 years ago things would be different. It just hit me very hard realising that I was 32 and illiterate in financial matters.
I learnt about the importance of financial management and keeping track of things, just that to start with made a massive difference. I was encouraged to check my bank statements and look for receipts and try and add them up to see how things were going. Then we started building a budget plan, which again was a massive eye opener.
You could have £500 in your account and then all of a sudden you have an impulse buy and think: “Yeah, I can afford that.” But you don’t necessarily think: “If I buy something for £400 there’s £100 left, but it’s two weeks until I get my wage, what am I doing??” It’s about learning how to say “No” and looking at every expense, and thinking: “Do I actually need this?”
I used to pay around £50 per month for a mobile phone plan for me and my wife so I shopped around and ended up paying £15 a month for us both. I didn’t even check before, I was the customer who says: “Do I want to renew? Yeah no problem, see you in two years.”
Confidence is a big issue.
Mrudula made us realise: what do you actually use in terms of a mobile phone plan? So we looked for something that suited us exactly.
Developing new routines to manage money better
Mrudula also helped me have a massive overhaul of my finances. You could look into little things like a subscription you set up ages ago which is £2 a month that you’ve never bothered checking, and then all of a sudden you realise: “Well I’ve paid this for four years and I’ve never really used it.”
One of the biggest changes I’ve made is that my wife and I used to shop separately, but now we look at expenses and budgeting and have made it a family thing to go grocery shopping together.
Before, one of us would say: “I bought bread,” and the other would say: “I did as well.” So now food waste is reduced and it also works out cheaper every time we go out shopping. I’ll say: “I want to get this,” but my wife might say: “Do we really need it?” or “I don’t think the kids are going to eat that,” and we end up saving money.
Over the years I had accumulated some debts and becoming a driving instructor meant there was a massive expense to start with. With managing debt you have to understand where the highest interest rate is and how it affects you. We also discussed having an emergency budget.
Now, every time I’m spending money I’m actually stopping for a second and asking myself: “Do I really need this?” “How is it going to affect me?” “Is it worth investing in this?” Mindset is everything. As a driving instructor I’ve applied a lot of that into my business as well.
Everything is a lot more organised and I feel things are 100% more manageable now.
It’s being in control, you’re able to be in control of your own expenses and money and know exactly where everything is.
Helping others to understand the importance of financial literacy
After discussing all this with Mrudula I’ve had a revelation in my head. Every time I have a chance with anybody, even with my pupils, I am talking about the importance of financial literacy.
My pupils could be 18 years old and have no idea what to do with their money, or they don’t understand or care enough, but I say: “Look, it’s important!”
I look at them and I see myself 10 years ago and I know where that’s heading. There are things I wish I had known at that time so if I can help them, why not?
Money management is a subject that everybody should tackle and be fully aware of. In this world nowadays where so much relates to numbers and money, it’s very important.
Some people may think they’re the only person who isn’t very good at money management but they’re absolutely not. I was amazed that at the age of 32 I wasn’t able to fully understand on my own what Mrudula was explaining to me.
It baffled me and made me upset about how things had worked out so far and I thought a massive change was needed. If you’re not interested in numbers and how they work how will you ever get interested in money? Money is numbers.
Talking about and understanding money from a young age
The reason I learnt what I did with Mrudula, was because I thought: “I have two kids and it’s something I need to know about and they need to know about it too.” I was thinking about the future.
When I was growing up, we rarely discussed money in my family and when we did, it was grim. At the time they were hard times back home in Romania, my parents were hard working people but had low to average paid jobs. It always brought sadness and we realised that we did not have much, hence probably why we avoided discussing it very often.
Because of this, I now make sure that my daughters are aware of what money means and are not afraid to talk about it. I always teach them little things. For example, my eldest has a little pouch where she saves money for ice cream in the cold times and uses it in summer when the ice cream van stops in front of the house. You can learn every day.
