Get cash confident
Friday 25 August 2006
If you're earning for the first time, or have just got a student loan it might be a bit strange having to deal with money. We take a look at the ways in which you can build up your confidence when it comes to cash.
Dealing with banks
There's no need to be afraid of banks. They'll want to keep your custom and so you should find that they're pretty helpful. If there's something about your account that you're not happy about, or fancy a change in the way your account works, give them a call and, if necessary, go into the bank.
Make me an offer
If you've seen a rival bank offer something to their customers that you might quite like, give your current bank a call and see if they'd be willing to do something similar for you if you were to stay with them. It's worth a try.
Earning and budgeting
If you've got an income, whether it's from a job, allowance or benefits, you should try and keep a record of what's coming in and, of course, what's going out.
It all adds up
First of all, make a note of how much you have coming in every week or month. Subtract the cash that you have to pay out for things like rent, bills and travel and see how much you've got left. If your outgoings are costing more than the money you've got coming in, you might need to make cutbacks in some areas.
Taken care of
Budgeting sounds boring, but what it does is give you peace of mind. Once you know your bills are taken care of, you can chill out and do what you like with the rest of your money.
Borrowing
If you have any sort of regular income, your bank may offer you some form of credit, like a loan or a credit card. It's common to hear horror stories of people who get into debt by forgetting what credit is all about: you do have to pay it back, with interest.
The fear factor
Not all credit is scary stuff, though; plenty of people use credit in the form of a mortgage to buy their house. If you do get a credit card or a loan, make sure that the repayments are something that you'll be able to handle and talk it over with your parents first.
Thinking ahead
Some people find that getting into debt early on can affect future credit they might want to take, so it might be best to be careful and do without credit for as long as you can manage.
Bank of mum and dad
If you borrow money from your parents or mates, make sure you can afford to pay it back and set a date when you expect to have paid the debt off so that you can budget for the extra money going out.
Saving
If you've got enough left over once your expenses are covered, you might want to think about stashing some cash away.
Something you want
If you can spare it, think about saving a few quid every month. It's tempting to spend all your cash as soon as you get it, but putting little away not only means you can save up to buy something special, it also gives you a safety net if you run out of money or have an expensive outgoing you weren't expecting, like car repairs or replacing your broken MP3 player.
A good way to start is by opening a savings account. Your own bank may offer a good one or you could search online and see what's available to you.
