Young people and money management
For the most part, money management isn’t something that’s taught widely in schools. But why not? Although money isn’t everything, it’s a huge part of our lives and influences most areas of our lifestyle. Most of us visualise our dream job, where we earn a certain amount and live our best lives – but there’s a lot of money management that goes into making those dreams a reality.
Money doesn’t grow on trees. It’s important to not only understand how to manage your money, but to know the value of it.
- Look at your incomings and outgoings on a regular basis.
- Find out where your money is going and where you could be saving. For example, if you spend £3.50 per day on coffee, that’s over £100 a month.
- Invest in a reusable cup and make coffee at home!
- Managing your money poorly from an early age can have an impact as you get older.
- Missing credit card payments or not paying a loan will affect your credit score, which in turn effects your ability to be approved for things such as mortgages in the future.
If you’re currently in education, unemployed or NEET, heading into a full time job and getting a wage each month is an amazing achievement, but can be a shock to the system. It’s tempting to spend it all at once, but just take a moment to think. We’re not saying don’t treat yourself, you’ve worked hard for that money and you’ve earned it! Just make sure you know what’s going to be taken from your account before you start calling the Lamborghini dealerships.
Getting into healthy money habits as soon as you start earning, will set you up for a more comfortable financial future and managing your money will be a breeze. You need to prioritise and work out what is essential and non-essential spending. Rent, food, insurance – these are all things that come under the umbrella of essential, and you need to put this money aside. Spending money on fuel or public transport is an essential spend, unfortunately the 11pm trip to McDonalds is not.
Our top tips for managing your money are:
- Open a savings account and set up a direct debit to transfer an amount into it each month.
- Invest in a budget planner, like this one on Amazon.
- Plan ahead so you’re ready for future expenses such as birthdays, insurance renewals or phone bills.
- Collect loose coins – it’s always good to have change lying around and it can build up to a larger amount over time.
- Find a healthy balance between spending and saving – you’ll be glad you did down the line!
There are some great website with credible tips to help with your money management such as:
Money is very personal, and everyone is in a different situation, so it’s important to speak to someone you trust if you would like some help with your money. Inside Success UK help young people in a variety of ways, you can read testimonials from people we’ve already helped here.
We’re always on hand to help, to just get in touch when you need us.