Money Guru
Get common sense answers to your money questions here!
- I want my pocket money to be safe, how do I open a bank account?
- I’m 17 years old, work part-time and I want a credit card. I already have a prepaid card, so what do I need to do?
- Why should I start saving money early?
- How do I get mum or dad to give me more pocket money?
- How do I stop my little sister from taking my pocket money?
Q. I want my pocket money to be safe, how do I open a bank account?
A. There are plenty of bank accounts aimed at young people out there, so it’s easy to get started with your own account – the big question is which one to choose?
To open an account you may need your parents to co-sign the form, but the process is usually easy – some banks even let you apply online.
It’s worth asking what your bank’s policy is on giving you a payment card. Being able to pay with a Visa card rather than being limited to cash is a big benefit and will help you learn to manage your money.
Visa prepaid cards offer the added benefits of being able to set spending limits to help you budget and easy access to your balance and spending. Take a look at our section on prepaid cards to learn more.
Before you open your account it’s also a good idea to shop around – most banks offer good perks like free texts, ring-tones and discounts. However, you also need to think about long-term things like how much your money will earn in interest or how easy it is to get to your money when you need it.
Q. I’m 17 years old, work part-time and I want a credit card. I already have a prepaid card, so what do I need to do?
A. First of all, you need to be a year older, as most credit card providers won’t issue card to anyone under 18. Still, it’s good to plan ahead and you might want to start doing your research now to find the card that’s right for you.
Credit cards are useful for buying big stuff immediately, then paying off the cost bit by bit, which can be especially useful if you get several big expenses all at once. However, to make sure you can pay the money back, you’ll need to be good at managing your money before you get a credit card. Take a look at our tips for keeping to a budget and start practising now to hone your money skills.
You can already use your prepaid card to spend money in shops and you could also load your wages on to the card, which will give you many of the same advantages as a credit card. And using your prepaid card will help you get used to using electronic payments and keep track of your spending, so you should be well on the way to being a smart spender. Good luck!
Q. Why should I start saving money early?
A.There are two good reasons to do this. Firstly, you’ll eventually have a good amount of cash to spend on something big one day – like a round-the-world trip or your first car. Secondly, saving is a really important life-skill to learn, so it’s good to get into training. Look at our tips on saving money to help get you going.
Q. How do I get mum or dad to give me more pocket money?
A.If you’re expecting any sneaky schemes like hypnosis or plain old emotional blackmail, look elsewhere! When you’re working and asking for more wages, you have to prove you’re worth it to your boss. This means taking on more work and responsibility. I reckon you need to apply the same thinking to your allowance – so imagine your parents are your boss. Commit to do more jobs around the house or take on other responsibilities and maybe they’ll consider giving you a payrise!
But more seriously take a look at your spending to see if you can make some savings. Look at our tips for smart spending and try to keep to a budget. There’s always something more to spend your money on, so try and prioritise your spending and cut back where you can.
Q. How do I stop my little sister from taking my pocket money?
A. Other than setting up CCTV in your bedroom and buying a safe, the best thing to do is to put your money somewhere really safe. A Visa prepaid card offers you lots of benefits and will certainly put your cash out of reach of even the most determined sibling. Take a look at our prepaid card section and see if you like what you read.
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