Top money tips
Wednesday 20 June 2007
Did you know that around 3.9 million children in the UK live in poverty? A recent survey also found that over one in 10 young people have gone without food because they didn’t have any money.
The children’s charity NCH have teamed up with Barclays Bank to launch a campaign called Financial Futures. Their aim is to help young people stay out of debt, better manage their money and by doing so help them to live independently.
One person that knows all about making money is last year’s winner of the TV programme The Apprentice. Michelle Dewberry was told “You’re Hired” by self made millionaire – Alan Sugar in 2006 and as part of the NCH campaign she has come up with 10 top tips to help you better manage your money. Stick to these and you can always avoid being skint.
1. Get your money’s worth
In the long run, a pay-as-you-go mobile is often cheaper than a contract and using a weekly bus pass instead of buying a ticket every trip will save you money. If you’re unsure, ask someone to help you work it out.
2. Claim all your benefits
If you go to college, see if you’re eligible to claim Education Maintenance Allowance (EMA).
3. Spend a little less than you earn
Work out how much money you have coming in and how much you can afford to spend by keeping a record, and then stick to it.
4. Pay your bills on time
If you get a poor credit rating now, borrowing money later will be much harder. You can check your credit rating on the Experian and Equifax websites.
5. Open a savings account
Even if you only put a little money aside each week and leave it there, it will soon add up!
6. Act quickly
As soon as you know you have a problem paying your debts, contact the people you owe money to. If you’re honest with them, they may agree to extend your contract or agree to a different payment scheme.
7. Don’t be afraid to ask
You can get free debt advice from the Citizens Advice Bureau or the Consumer Credit Counselling Service.
8. Eat before you shop
If you’re hungry, you’ll spend money on food you don’t need. Always go to the reduced aisle first to see if there are any bargains you can freeze or use in the next few days.
9. Check your charges
With a credit or store card you may end up paying back more than you borrowed because of the interest they charge. Look at the APR (Annual Percentage Rate) to see how much the interest rate is. If you have 15% APR on a loan of £100 over one year, you will have to pay back a total of £115. Always look for the best deal around.
10. Make a stand, don't buy the brand
When you buy brand-name goods, you’re paying extra for the name. Check out own-brand goods and nondesigner clothes to get better value for money. Even celebrities shop on the high street!
Managing your money well just takes a little bit of planning. For more advice take a look round the money pages of n2k.
Finally for a bit of random light relief - you might find that singing about money, like these two girls, could be fun!
