Are you struggling to save? This might be why!

Welcome to Financial Fluency - your weekly guide to mastering financial English, learning how money works, and making confident financial choices.

In this issue:

• A Look at the Markets: Coinbase

• Are you struggling to save? This might be why!

• Quote of the Day: Baroness Merron

• We value your feedback

• Word of the Day: Utilities

• Test Your Knowledge: Interactive Quiz

• Whenever you are ready, here is how I can help you

A Look at the Markets: Coinbase $COIN ( ▼ 5.82% ) 

In our 18 April 2025 newsletter, I discussed alternatives to direct Bitcoin ownership — in other words, ways to gain exposure to Bitcoin without actually buying it.

One option I suggested was investing in publicly listed crypto exchanges such as Coinbase, and I included this chart at the time:

Let’s now update that chart:

As you can see, the stock has risen by approximately 130% in just three months.

By comparison, Bitcoin is up only around 26% over the same period.

For transparency, I have taken some profit on this trade. However, this is not financial advice. Always make investment decisions based on your personal goals, risk tolerance, and financial circumstances.

Are you struggling to save? This might be why!

The generational shift that changed everything about money

My parents were lucky.

When I was young, people used to talk about 'saving for retirement'. This was a realistic objective to supplement a state pension. While not easy, it was possible.

These days, I believe that saving is more difficult for many people.

Saving is Difficult

Our major purchases are higher now than for my parents' generation.

Houses, utilities, holidays, and electronics have all increased relative to average salaries. Many people are struggling just to pay the bills with the high cost of living these days. Even in the UK, where salaries are higher than in Italy, for example, there are stories of people with full-time jobs still needing to rely on food banks (food donations) to pay the bills. A survey by the Cavell Nurses' Trust found that 14% of nurses and health workers are using food banks to feed themselves and their families.

This is a simple explanation of why so many people find it difficult to save, even if in full-time employment.

Houses

In the UK, the average house price to salary ratio was around 3.5 to 5 times in 1970.

Owning your own home was a realistic dream. However, by 2020 this ratio had increased to approximately 8.8 to 9.7 times the average annual salary. Not only are mortgage payments higher, even saving for the deposit required can seem impossible.

For many, property ownership has turned into an impossibility without parental help.

Utilities

The price of utilities has increased significantly compared to the average salary.

Utilities include electricity, gas, and water and are essential purchases. While gas prices have remained reasonably stable in real terms, the price of electricity and water has risen considerably. Keeping the house warm has become a major problem for many in the cold UK winters forcing many to choose between heating and eating!

We have more options for green energy such as solar these days but that requires a significant capital investment.

Holidays

This is more anecdotal from my own family's experience.

I do not believe that current parents doing the same jobs as my parents (university lecturer and primary school teacher) could afford to go on holiday to the same UK hotels as we went to 50 years ago. We did not think of the hotels as luxury but they appear to be now in the luxury price bracket. There are, however, still cheaper options available.

It should be noted that the cost of international travel is cheaper than when I was a child.

The Electronics Paradox

It should be noted that some things are cheaper such as electronic equipment.

However, our electronic equipment has become much more sophisticated and we are buying much more of it. There were no computers, tablets or smart phones for everyone in my house when I was a child. We had one TV.

We used it to watch the one live domestic football match a year - the FA Cup final.

Conclusion

I tell these stories not to say that everything was better then or now.

In fact, for most people, their standard of living is higher now. I had ice on the inside of my windows when I was growing up in Scottish winters. However, this has come at a price.

The price for many is that saving is difficult!

As always, none of this is financial advice. Everyone should invest according to their personal circumstances, risk tolerance and financial goals.

Quote of the Day: Baroness Merron, UK Parliament

This is a simple explanation of why so many people find it difficult to save, even if in full-time employment.

We Value Your Feedback!

Your opinion helps us improve and lets you suggest topics or ask Business English questions for future issues.

Word of the Day: Utilities

Utilities - noun - essential services needed for daily life, including electricity, gas, water, and sometimes internet; basic costs that every household must pay.

Context and Usage: Utilities are costs you cannot avoid in any home. Unlike other spending, utilities are basic services that create minimum monthly expenses. Understanding utility costs is important for budgeting and comparing different housing options.

Note: Utility costs have risen much more than average salaries in recent years, making them a bigger burden on household budgets than for previous generations. These basic services now take up a larger percentage of income for many families.

Common Collocations:

Monthly utilities - the recurring essential service costs
The monthly utilities of €200 needed to be factored into the true cost of homeownership beyond just the mortgage payment.

Utility bills - the invoices for essential services
Rising utility bills forced many households to choose between heating their homes and other necessities during the winter months.

Utility costs - the expenses for basic services
Comparing utility costs between properties revealed that the older building had significantly higher heating expenses.

Essential utilities - the most basic required services
Essential utilities like electricity and water represented non-negotiable expenses that had to be prioritised in tight budgets.*

Business Example:

Property Context: When looking at housing costs, utilities are often the hidden expenses that can add €150-300+ monthly to your housing budget—costs that exist whether you rent or buy and must be included in any realistic financial comparison.

Test your knowledge: Interactive Quiz

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Disclaimer:

This newsletter is for informational and educational purposes only and should not be construed as financial advice. The information contained herein is generic and does not take into account your individual financial circumstances. You should always consult with a qualified financial professional before making any investment or financial decisions.

Additionally, the authors and/or publishers of this newsletter may hold investments in securities or other financial instruments mentioned herein. These are included for illustrative purposes only and should not be taken as a recommendation to buy or sell such securities or financial instruments.