“Guidance is the same as advice” and other money myths you need to know to make the most of your money

Sponsored by Santander UK

When it comes to money, who do you trust?

Well-meaning friends and family? A know-it-all down the pub? A start-up you see advertised on a billboard or online? A well-known brand?

While we might trust our friends and family for many things, if managing money isn't their day-to-day career, they're probably not your best option, even if you think they have your best interests at heart.

Spoiler: and it's certainly not 'the so-called expert down the pub' who boasts of their amazing crypto returns!

So, let's lay bare some of the myths that get passed around, separate the fact from the fiction, and explain in simple terms what's going on and who you can trust.

Myth 1: Cash is king! You can't lose money when it's in a savings account.

For some of us, one of the very few benefits from being confined to our homes during 'lockdown' was our monthly expenses reduced. No going out, eating out, or going on holidays meant we've managed to put a bit of money aside and pay off those darn credit card balances.

In fact, in the first year of the pandemic, the Bank of England says households saved a jaw-dropping £162billion (March 2020 to March 2021). And those who've managed to get into a good savings habit also report feeling mentally healthier and more secure knowing they've got a little bit of money safely tucked away.

But. There's always a but, isn't there? Many people have quickly realised that the real value of their hard-won savings is reducing. With inflation currently running above 5%, it's easy to see why Martin Lewis, the founder of Money Savings Expert, claims that "savings accounts are 'losings' accounts."

In other words, you can buy less with your cash savings today than you could with the same amount a year ago.

What should we do? Once we've set aside some cash for emergencies and paid off any short-term debt, such as credit cards or Buy Now Pay Later loans, it's no surprise we're all looking for alternative places to put our money where it can work a bit harder for us. The good news is that for those happy to put at least some of their money away for five or more years; a sensibly managed investment is often top of the list. We'll come back to that in a bit.

Myth 2: Help, guidance, support, advice – they all mean the same thing, don't they?

Well, no, they don't!

There's a wide range of investing services in the market today, and it can get confusing trying to work out the differences when many of them look and sound the same. So how do you sift through them to get the one that's right for you?

One big difference to look out for is whether they offer you advice. Not just a little bit of help or guidance or support. But real investment advice. You might be wondering why this is important? Simply, it is reassuring to have a qualified adviser help you navigate the right course of action, and your adviser is also responsible for the advice they present.

So, if anyone ever tells you that help, support, guidance, or advice are "pretty much the same thing", you now know they're not. The difference is significant. To sleep soundly at night and not worry about whether you've done the right thing or not, invest with a provider that offers regulated advice.

Myth 3: Financial advice is only for the rich, the wealthy; it costs a fortune!

To get advice from a financial adviser or wealth manager, you'll likely need to have £20,000, £100,000, or even an eye-watering £250,000 'spare' for them to be interested in talking to you. Wow!

For many of us, this might mean we fall into what the financial press call 'the advice gap'. And at first glance, it looks like we're excluded from exactly the services we so desperately need.

But not if you know where to look! And fortunately, you're in the right place because Holly and her team at Boring Money—and thousands of people just like you—have already done the hard work with their research and reviews.

With the pandemic driving almost all of us to use technology to help cater to all aspects of our lives, a small number of digital services now provide regulated financial advice. And you can benefit from this advice for the same price as a couple of months of Netflix subscription, not the hundreds or thousands of pounds charged by a financial adviser. Clever, eh?

And while the price isn't the only factor to consider (we don't always buy the cheapest of everything, do we?); it's comforting to know that when we're feeling the pinch, you're getting great value for money at a much lower cost by using a digital advice service.

Myth 4: All the digital financial services are from start-ups with made-up names!

In part, that's true. The UK is certainly a hotbed for 'fintech' services and challenger banks, but they generally don't offer regulated financial advice. So, if you're looking for a simple online service from a high street brand you know—not a provider you've never heard of—then take a look at Santander's Digital Investment Adviser.

Getting digital advice is a smart way to identify whether investing is right for you and discover if it can complement your savings. The Digital Investment Adviser can be a perfect match for people starting on their investment journey. As Holly at Boring Money says, "The digital advice journey will appeal to those who don't feel confident about investing…[T]here are some nice 'gamified' things to test attitudes to risk."

Easy to use and beautifully designed, Santander's Digital Investment Adviser provides a range of four Santander investment funds. Each fund is designed for people with a different approach to the level of investment risk they are willing and able to take and invest in multiple UK and global companies.

Simply choose to purchase the personalised recommendation on which fund is right for you, and you'll pay a one-off £20 fee. Then, if you decide to go ahead, you can start investing by trickling in £20 each month or adding a single amount of £500.

If you choose to use the Santander Digital Investment Adviser , you'll be in good company. Join thousands of savers seeing the benefits of investing rather than leaving their money to the ravages of inflation.

As with all investments your capital is at risk and you may get back less than you invest. Investments should be held for the medium to long term (5+ years), unless there is a fixed term that applies.

Past performance is not a guide to future performance.

This article is provided for information purposes only and is not intended to provide advice on the suitability of an investment.

The Investment Hub and the Stocks and Shares ISA are provided by Santander ISA Managers Limited. Registered in Scotland No. SC151605 at 287 St Vincent Street, Glasgow G2 5NB, United Kingdom. Telephone 0800 328 1328. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 171448.

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