you let computers budget the things you need? Of course — that would be convenient especially if you need something to stop you from overspending. Artificial intelligence was naturally made for personal finance — namely as digital personal finance advisers — but it is taking a bit long for them to arrive.
According to Salon, digital assistants for finance are seeing huge developments as financial institutions recognise the need for “robo-advisers.” Bank of America’s Erica is one; she is tasked to help customers make better financial decisions.
Using cloud-based artificial intelligence, predictive analytics similar to CleverBot’s algorithm and looking directly into your monthly to yearly spending can give you advice on where and how to save money.
However, artificial intelligence could be like your mom; you listen but you never follow their advice. According to Accenture Director of Artificial Intelligence Nicola Morini, many budgeting applications offer personalised advice but they could not influence user decisions effectively to the point they could change the consumer’s habits and behaviour.
Another issue is if ever these clever new artificial intelligence are just self-serving extensions of financial institutions. Advertisements are unavoidable simply because banks need to earn revenue not just to keep the bot running but also its operations. It could make offers through credit card rewards programs or “scenic routes” in budgeting where there is a true, simplified non-biased way to save you more money.
Saving money, while artificial intelligences are helpful, is always up to the user of the applications. One’s discipline, an understanding of their situational priorities and other factors are the basis of a good spending attitude. Robots are there to just remind you there’s a great solution here — much as how you would react to a navigation app’s erratic long-way suggestions to avoid traffic.
In a feature in US News, the couple Johnny and Joanna Galbraith were married early. However, the sinking fangs of $20,000 in student loan debt were high prices to pay. However, even if the amount they need to repay is quite small, the two repaid their loan in only two years.
According to the Galbraiths, they read some books and talked in the late evenings regarding the things they wanted and their solution to their personal finance issues when it comes to student loans. The two said all people need to do is place their financial management “as a priority.”
This meant having to make exact summaries of their monthly income and expenses. Accounting for all these amounts made it better to manage their wants and needs — with the two describing priorities overpowering the want for an expensive vacation or looking for “free options” as travel destinations.
They also described cutting costs as refusing to eat out at expensive restaurants. Johnny Galbraith said should friends ask them to dine out at expensive restaurants, they would instead meet them “for dessert afterwards.” Johnny said that if the two of them lived an expensive lifestyle, it would have been difficult for them to cut back.
The passion to save money and rid themselves of debt had also helped them manage their finances better. They said when their children arrived in their lives, they knew they had to save money for their daughters’ education and saving up for a mortgage. In short, they said it was all about management and having a clear view of one’s finances to clear debt and achieve financial goals.
As the UK government is raising the state pension age, saving is a valuable asset to have in the advancing years starting from 2017. Starting to save at an early age can help many young workers to retire earlier than the intended later state pension age beyond 60 years old.
According to Aegon UK, only half of the population were able to retire at the age they intended. The results of their research — working with Just Retirement — many women were forced to stop work early as well to help a sickly elderly in their home.
The government plans to raise the state pension age to 66 for both men and women by October 2020 and above to 67 by 2026 and 68 between 2044 and 2046. While these dates are far away, life expectancy does not grow higher for all UK citizens.
While pension freedoms allow workers to access their state pension from 55 years old but heavy taxation and the temptation to use the money for other items other than better investments does not resolve the issue that workers have less money upon their retirement. Saving money early at a young age — specifically when a student graduates and begins on their first job — is imperative for the later years.
Slowdown anticipated as mortgage debts increase due to increasing house prices. Reports indicate that house prices have increased by 6 per cent in November compared to the same period in 2015. UK housing market trust is also at a low, ensuring a slowdown in property prices by 2017
According to Halifax, house prices in the three months to November have increased 6 per cent higher than the previous year. In its report, it said that UK housing market confidence has fallen to its lowest point in the last three years. Housing Economist for Halifax Martin Ellis said property is unaffordable for many Britons, marking the slowdown. He said that the lowest rates of mortgages in UK history could help ease the incoming price fall.
The Royal Institution of Chartered Surveyors confirmed that an upcoming sluggish market is abound. It said that buyer interest is at a historically low level. Property shortage also plays a key role.
According to Mortgage Advice Bureau Chief Brian Murphy, Halifax’s results indicate that post-Brexit referendum does not have an effect on mortgage prices but only consumer activity. The data ensures that the UK will steadily head into 2017 without real estate problems.
Your Move & Reeds Rains Exeutive Director Adrian Gill said the UK banking industry’s opt out of the 0.99 per cent fix is a signal that the mortgage market has “bottomed out.” He said that existing homeowners should re-mortgage to lock their fees into today’s deals without troubles from future hikes.
You know, there’s this thing where children expect their parents — who had worked hard for their money — would get the money as soon as their parents pass.
But to tell you honestly (and you may call me a capitalist and individualist for doing so) I don’t mind whether my parents would give me their pensions or not. It’s because their estate is theirs to spend; I have to build mine.
It’s maddening to see that over 42 per cent of people with elderly parents believe they would receive a high amount of inheritance from their parents’ estate.
I mean nowadays, sure, the economic climate along with the Brexit’s effects aren’t going to give us everything we need. But by God surely you don’t depend and plan out the money you aren’t likely to spend.
As the saying goes: don’t count the chickens before they’re hatched.
It’s amazing that half of the middle class expect money from their parents’ pensions. It’s unfair that Generation X to Millenials have to work so hard and not even get retirement. But your parents — even if you must insult them for telling you about their pride in raising you being cash-strapped — deserve their own time to rest and not worry about finances.
If they wish to spend it and use the new pension rights they have to withdraw their money early it’s their call. They earned that money and you don’t have any say in it.
The ‘inheritance gap’ is purely rubbish if I may say. It’s nice to expect but to plan it out? That is insulting even to the memory of your parents — regardless whether they give you an inheritance or not.
If there’s anything children can learn and use as they grow in educational institutions, it’s not always going to be maths, history or even science. While these play a huge role, personal finance takes on a better role.
Directing all aspects of understanding in personal finance allows children to understand that money is an important part of life. One’s attitude to spending, saving and wealth creation comes from one’s early interaction and use of money.
According to Conservative MP for Fareham Suella Fernandes, personal finance education allows children to understand personal finance early to understand the value of items and services and make confident financial decisions as they grow older.
Teenagers and adults unable to understand compound interest or credit card APRs. Because of the lack of such, many are making bad financial decisions. Growing more financially illiterate and exposed to opportunities to use money is disproportionate as it is unfortunate.
The MP pointed towards PPI as one issue of the matter:
“We spent £21 billion on miss-sold PPI. Had people been better informed, that figure may have been considerably smaller. We need to enable people to make good decisions about their personal finances by instilling a sound attitude to managing risk and debt.”
People were misinformed during the mis-selling of payment protection insurance. They were advised to buy insurance policies to upgrade their credit scores, secure the loan and ask for repayment. Without proper advise and a in-depth understanding of the product coupled with the need for financing, the consumers gave in.
I would agree to help make personal finance a part of elementary and secondary education.
Post-Hangzhou Summit, the G20 had agreed on just a few points. Much to the disappointment of many analysts and industries, the finance ministers and central-bank governors along with other world leaders may have made only a few, but substantial goals for the world to reach stability in the next few years.
Green finance is another. According to the G20, green finance hsould be at the centere of all economic-development strategies.
Given the world’s troubling climate troubles, including the increasing threat of global warming worldwide, radical shifts in industry and technologies — especially energy producing industries — would be needed.
But now, even China recognises the need to centre environmental and green finance. The country — which often shows a complete disregard of the environment for profit — wants to lead a global economic revolution with sustainable solutions at his disposal.
Chinese President Xi Jinping said China has in place “guidelines for establishing a green finance system.”
According to the guidelines, China will have to develop a wide range of new financial instruments, including green credit, green development funds, green bonds, green equity index products, green insurance, and carbon finance. It must also introduce a host of specific policies, regulations, and incentives, including innovative use of the central bank’s relending operations, interest subsidies, and guarantees. And it must establish a national-level Green Development Fund, much like the United Kingdom’s Green Investment Bank.