Your money questions
Tuesday 23 June 2009
Deborah Meaden from Dragon's Den answers your finance questions.
The Young Enterprise Personal Economics Programme
The programme, run by Young Enterprise, aims to develop people’s understanding of their finances and the economy they live in. It helps them to make plans for their future, as well as build the confidence, knowledge and skills to make the most of their money.
Deborah Meaden is one of the entrepeneurs from Dragon’s
Den, and is a fan of the programme.
She says “This programme
supports people who want to set up their own company whilst still at school or
college, and gives them advice and guidance from a business
volunteer.”
Anyone taking part are put through their paces with games involving credit crunching dilemmas, budgeting and bank statements. It’s not just about money either. People are also asked to create a ‘Life Map’ that plans out everything from going to college or university, working and even having a family in the future.
Deborah's top 5 money tips
1) Set yourself a budget – keep records of your income and expenses.
2) Live within your means – only spend what you can afford.
3) Know the difference between luxuries and necessities.
4) Create a savings plan and stick to it. Each time you get some money, set aside a regular chunk of it.
5) Don’t be afraid to ask questions. The more you understand about managing your own finances, the less daunting it will seem.
You asked Deborah...
What is an investment and when can I make one? What was the first company you invested in?
An investment is a choice you make to place money into something that you think will make you money. You shouldn’t invest in anything until you are fully aware of the business and level of risk. My first independent investment was in a market research company. I could see what this company offered - it was unique and I was really impressed.
Were you good with money when you were a teenager?
I used to spend money on clothes and going out but I always understood the value of the pound. Being able to handle money is a skill that I picked up over time from those around me. It’s important to take any advice and help you can get.
I want to start a business when I’m older – where do I begin?
Setting up a business is a lot of hard work and is often a case of trial and error. The best place to begin is with research – look into competition and whether there is a market for your product or service.
I’m going to uni next year and I’m thinking of getting a loan, is it worth it?
A student loan has a low interest rate so you’re likely to get a great deal, but whether it is worthwhile is up to you. If you don’t get one you will have to get a job whilst you study, so it’s a case of weighing up what is important to you – what you need, and what you don’t. A loan allows you to focus your time to study but you will have to pay it off when you begin working.
What’s the fastest way to pay off my bills?
It’s all about budgeting and making sacrifices. At the beginning of the month work out how much money you have coming in and how much you will have to spend. Put aside a small amount so you can still go out and then everything else can be used to pay off your bills. Do this each month and it won’t take long before you’re back on track.
What’s the best way to save money? Should I sign up for a savings account?
Savings accounts are great to keep your money in a safe place, and if you pick the right one and leave it locked away for long enough you can make good interest on it.
