Perception's influence on reality
It's what makes the world go round.
Good news for the UK economy. Inflation is down! (Remember, that means that the rate at which prices have been increasing has slowed down, not that prices are going down). With growth slowing too, this means that the Bank of England is more likely to make its next cut in February. Assuming there aren’t any economic shocks occuring before then.
This means that, following the turmoil (and panic) reported last week, UK government debt (gilts) have been viewed as a more stable investment.
Basically the ‘market’ has been assured that the UK Government knows what it’s doing, and has stopped flapping.
So we know that markets react to stories and sentiment, creating herd behaviour.
It’s always fascinating to me (as a former communications professional) that stories are so powerful. Who and what dominates the headlines influences our view of the world. Who puts out the stories shape what we think.
We know that whatever elicits the strongest reaction in people drives the news agenda. For us to research and think critically about the information we receive — all of it — would be a full-time job.
Earlier this month, Ian Hislop — who I think is just brilliant — spoke about the role of El*n M*sk and tech bros in shaping our world. I’d highly recommend watching this 90 second clip.
There’s a deluge of information and we remember things we hear. The more times we hear the same thing over time, the more it becomes fact. Media shapes mass perception through repeated narratives — and this has real world implications. We’re now seeing this played out on steroids, as the new US administration comes in on Monday. Which is going to have massive global implications.
Those creating the content and those managing the channels for those content are now more linked than ever. And the role for us gets harder — but remains the same; taking back agency over our own attention.
Otherwise we risk falling further into the type of mentality that governs the markets.
1. How to financially plan for caring for your parents
Start with a big question — “How do you picture your life in ten or 20 years?” — to start to figure out what they want to do as they get older.
If they stonewall or genuinely have no idea, offer to help them with research into the options available to them. “A lot of people default to, ‘I want to stay in my home until I die,’ because they fear the loss of independence and identity.”
With regards to cost, check what their health insurance covers (if they’re American, or have private health insurance). And find out what their life insurance policy information is, and where it is.
A tactful way to sniff around your parents’ finances is to bring up how you’re planning your own, says Robinson. “You could say something like, ‘Hey, I’ve been working on contributing more to my long-term savings, and I was wondering what you’ve set up for yours.’” This includes understanding what debt they have (if any).
Make sure they have a will, and power of attorney set up too.
All adults should do this: “Use a password-manager service to list all your log-ins for important bills, insurance websites, and bank accounts, and make sure that a loved one knows how to access it.”
2. AI financial advisers target young people living paycheque to paycheque
Over the last few years I started — and then failed — at building a tech solution to help people figure out what to do with their money. Not advice, just guidance, tailored to their individual situations. I know this solution is needed, but the challenge is making it a ‘commercially viable’ business.
It all comes down to ‘how can you make money?’ If I want to offer it for free to people who need the tool, where is my revenue coming from? The easier thing to do is target people who do have money — and then you end up in the territory of making the rich richer.
Cleo is a UK startup that got traction in the US, and now is a US-centric business, and a UK tech success story. It began life as a chatbot which could see what’s going on in your bank accounts, and either ‘roast’ you or be nice to you, to nudge you into making better financial decisions.
The problem is that this service doesn’t make money. But you know what does? Selling financial products.
In fact, one of the easiest things to do is offer credit products — either credit cards, or loans. In the case of Cleo and Bright (a similar app in the US) they offer cash advances. Cleo offers smaller loans than Bright — but both are still not solving people’s actual money problems.
Sigh.
Still, if anyone wants to fund my business idea, let me know.
3. More people in late 20s still living with parents
The proportion of 25 to 34-year-olds still living with their parents has increased by more than a third in nearly two decades
And men are more likely than women to be living at home, at 23% compared with 15%.
High renting costs and rising house prices were the most significant reasons for the change.
UK-born young people from Bangladeshi and Indian backgrounds are more likely to live with their parents
The reasons cited in the report for this are that”
You can build up savings more quickly than if renting
Having experienced a bad shock of some kind — such as the end of a relationship or a redundancy
Because they can’t afford to live independently
I’d add to this that some people — especially if they are single — may simply prefer to keep living with their parents. Why spend time alone, when you could build stronger relationships with your family? Or because day-to-day life is just easier when you’re living at home?
The Western mindset of self-sufficiency and independence from the family unit is always at odds with the more ‘family first’ approach seen in other cultures (including my own). It’s interesting that it’s starting to play out in the data here.
Links!
Money
20mph speed limits appear to be making car insurance cheaper.
How to file a tax return in the UK.
Probate cases are increasingly taking more than a year to resolve.
How to get through to an adviser faster in a call centre. Tips include: call when the soaps are on (like Eastenders or Coronation Street), Tuesdays and Wednesdays are quietest; quoting prices from comparison websites can be the magic password that unlocks cheaper deals…
Half of UK retailers plan to cut workforce in 2025 - and even more will raise prices.
A quarter of Brits hide savings from their partner.
Life
Shein appeared in front of a Parliamentary committee — and offered only obstructive and unhelpful answers. Related, there’s a petition by Say NO to Shein, asking the government to block the ‘fast fashion on speed’ company from listing on the London Stock Exchange.
An insight into the ‘dull world’ on Facebook, where people “just want a voice to be themselves and share their cooking, share what shade their cup of tea is, share that they’ve just done the washing that day.” And how it’s being overrun by AI slop.
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