Budgeting and saving

Get more from life by learning how to be smart with your money

When there’s so much tempting stuff out there, it’s hard to ignore it and think about tomorrow. In the short term, you need to be smart with your money if you want to get the big stuff, like the latest games console or a trip away with mates. In the long term, knowing how to budget and save is an essential skill if you want to get the most from life.

Here are a few pointers to help you on your way…

There are three steps in drawing up a budget plan:

1. Work out your current situation

Write down the money coming in and the money going out. You can do this for the week or the month (depending on how often your allowance or wages are paid). Don’t forget to be honest and include ALL your outgoings – including travel, snacks and socialising.

Now compare the totals – what can you learn from this picture: are you spending more than you earn? Are there things you could cut down on? It would be great to put a bit of spare cash aside.

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2. Think about your future needs and goals

Do you plan to travel around the world when you’re 18 or want to learn to drive? If you have long-term goals, it makes sense to set some money aside to help fulfil them. Once you’ve worked out how much you can save, you need to think about how to save.

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3. Decide what you’re going to do about it

There are plenty of ways to save, such as savings accounts at your local bank and government saving schemes. You will usually need a parent’s permission to open a savings account and, like anything, else it pays to shop around for the best deal.

The important thing to remember is to save BEFORE you spend! Maybe you could agree that a bit of your allowance is put into a savings account at the same time as the rest is added to your Visa prepaid card?

Prepaid cards can also be a good way to save, as you can build up a balance on your card and watch it grow.

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