What does Brexit Mean for You and Your Pennies?

As you may have noticed, last week, Britain made one of its most poignant and controversial political decisions in history – to exit the European Union. It is a seismic topic that has been on everyone’s mind, whether you voted in or out, or simply couldn’t decide what you felt would be best for the future generations to come, I’m sure you had an opinion to offer on the matter. With immediate affects to the value of our pound, it is certainly a topic that we have been interested in here at Cash4Coins! The pound fell to it’s lowest value since the 80’s and everyone immediately cast their opinions that the financial market was going to crash, however, the constant fluctuation since last week has left people unsure as to where we stand. So, for those who are unsure, we are here to give you an unbiased report on what Brexit really means for our economy…

Immediate Aftermath

In the wake of Brexit, Britain fell to 6th place in the world’s largest economy, behind France. The immediate 10% fall meant that there was a global rush of capital into a more secure currency, such as the Japanese Yen and the Swiss Francs. According the likes of the Bank of England and large UK organisations, there was a prediction, pre-exit, that suggested the economy would flourish considerably slower without the EU. However, many pro-Brexit economists are suggesting that there is no need to worry as they have projected that, although we had a drastic fall on day one, we will eventually build up our economy and come back fighting (as Daft Punk would say) ‘Harder, better, faster, stronger’!

What does this mean for your travel spends?

Cameron has claimed that, although the result has come as an immediate shock to the system, whether it is to your delight or dismay, nothing will actually change straight away, so it could take years and the smallest of difference to change the way we spend our pennies abroad. As it stands at the moment, due to the drastic fall in value of the pound, there have been some effects to the exchange in currency. Only last week, the day it happened, many places in Greece were not exchanging sterling to euros, simply because the value dropped so much in such a short space, they couldn’t work out what the exact exchange rate was for hours. It also meant that if you were travelling that weekend then you would, unfortunately, have been getting less euros for your money. BUT… Do not fear! This can be excused as a mere reflection of the knee-jerk reaction to the uncertainty of the UK financial market now that we are standing alone, since last week the pound has already risen by 2%, which in money terms… is a pretty positive rise! So, it has been advised that, if you are yet to book your holiday this year, then choose wisely, as picking a destination where the sterling is strong and the local cost of living is low could make a real difference to how you make the most of your pennies when sunning yourself this summer.


Although it is claimed that Bank of England predicted a slow start and slow development for the UK economy after Brexit, they lifted stocks up to an all time high since February 2014 by driving £3.1bn in UK lenders, which resulted in bids of up to £6bn.

In The Home

The link between wholesale gas and electricity coincides with the price of oil, so it wouldn’t come as a surprise if your main concern with the Brexit aftermath were the price of general living costs and your daily trips to the petrol station. Although no costs or calculations have been proven or confirmed, there still lies the threat of these rising prices along with the possible rise in taxpayer’s rates, which could really tighten the family budget. It has also been predicted that value of properties could fall over £2,000 within the next 2 years, and over £7,000 for London alone. This is one of the main concerns of the National Association of Estate Agents who believe that the property market is based on ‘confidence’, so with such uncertainty cast over the UK housing market with our vote to leave, it leaves outside investors sitting on their hands waiting for some sort of restoration in trust.

Savings and Pensions

Since 2012, standard saving rates have been an uphill battle with downhill result with the base rate sitting at 0.5% for the last 7 years. However, some believe that due to the eventual high interest rates, it would relieve those savers who have seen such a downturn in returns over the years. Pensions, understandably, seem more unreliable after Brexit, with the possibility of private pensions being savaged if stocks fall or the market crashes, meaning it would take years to rebuild. In this case, the younger generations of voters have more time to reassess how they will save for their futures and what will be a best way to keep their money safe. It also means that over the years we could see drastic changes in pension laws due to our involvement with the EU, so at the moment it is a case of uncertainty for all ages and pension holders. Currency exchange also affects the pension rate for British citizens living abroad in EU countries.

The Positives

Although there are two sides to every story, it seems as though uncertainty has cast a dark shadow over many professional and public opinions and divided people’s views on our future in the UK. However, many economists are encouraging people to believe in the UK’s ability to stand on our own two feet and embrace the change with gusto. One economist, based in Tel-Aviv bank, Leumi, has claimed that this is a positive change and sets precedence for the UK to finally be able to fine tune our own legislations and trade agreements. So, whether you pro or against Brexit, there is definitely an air of change around the UK public and we can now embrace the change positively by taking matters into our own hands and being more involved in the political world. If anything, it has made the British public far more passionate about and engaged with politics, which can only be a good thing.

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