Creating good money habits from a younger age can help you create a stronger financial future.
Financial Safety
The first key thing to bear in mind with money management is keeping safe. Make sure to use strong passwords for all of your online accounts and never provide your full bank details through email or text. Don’t click on any links from unknown senders and make sure to log out of your accounts when you’re done using them. If you have a debit card, make sure you don’t share your pin with anyone, and if you lose your card, contact your bank straight away.
You can find out more about specific social media scams which are commonly used by fraudsters by clicking here, so that you know what kind of things to be wary of.
Financial Goals and Budgets
Financial goals are the priorities and targets you set for how you want to spend or save your money. Setting and working towards financial goals can help you to keep the bigger picture in mind.
You might find that you have multiple financial goals, and you might find that some are bigger than others. Smaller, more short-term financial goals might include things like saving enough to buy a new pair of shoes, or for a day out. Bigger, more long-term financial goals might include things like saving for driving lessons, or to buy a car, or even to eventually buy your first home. Whatever it is, it doesn’t hurt to start thinking about these things early.
Once you have these financial goals in mind, you can get started on creating a budget. For this, you will first need to think about what kind of money you have coming in, such as from pocket money or a part-time job. You then also need to consider any costs that you might have coming out.
Setting Up a Bank Account
To set up a bank account as a teenager in the UK, you will need the help of a parent or guardian if you are under 16. If you’re 16 or over, you can usually apply for a bank account by yourself.
Having your own bank account can help you to manage your own money through tracking your own spending by tracking bank statements and encouraging saving. It is also a safe and secure place to keep your money.
Checking Your Payslip
Whenever you get your first job, it’s important to learn how to properly check your payslip. Your payslip should be dated and contain details of your pay before and after deductions, and details of all deductions, such as income tax and national insurance. It also normally contains your tax code. Checking your payslip is important to ensure that you are being paid correctly by your employer.