1: The ‘B’ word
This word sends shivers down the spines of most fully grown adults, never mind those in their teens or early twenties. But a budget doesn’t have to be limiting, or mean you never go out and see your friends. A good budget should just give you some parameters to live inside, a bit like bowling when they put the barriers up stopping the ball constantly ending up in the gutters. You can still have fun, but you’re less likely to mess up… and more likely to get a strike! Start small, £10 a week, £20 a month. It all adds up, and before you know it (if you don’t spend it) you could surprise yourself with how much you’ve squirrelled away.
2: Workin’ 9 to 5
The absolute best way to kick start your savings pot is to get a job. Having a means of income massively helps your chances of succeeding in your goals. But we know that studying may mean you can’t devote time or brain power to something else.
There are jobs that are perfect for a few hours a week, coffee barista? Pizza delivery driver? Or if you’re the crafty type, get making, upcycling or buying and selling. There’s money to be made on resale sites or using your skills to make things from scratch. You just need to have a little time and patience.
3: Use your discount
If you’re a student it’s more than likely you’ll get a student discount. You’ve got a card that gets you a pretty much universal 10% off EVERYTHING. DON’T go buying things you don’t need just because you can, but DO use it to your advantage. After all it’s like having a superhero power!
Plus it’s never been easier. You just flash your card at checkout or enter a number online and that’s it! Super student budgeting the super easy way.
4: Spend no money days
A few quid here, a few quid there, what’s it matter? Well, that coffee you’re buying to treat yourself each day could be adding up to £100s every year. It’s the same for those little impulse purchases; those items you don’t need but really, really want in the moment.
So you could consider one day a week where you spend nothing. This starts good habits and gets you thinking about where else you could save money, packed lunches, buying season tickets for transport, the options are endless.
5: Plan ahead
Christmas, birthdays, holidays, car insurance – these are consistent. They aren’t ever going to go away and they happen on the same date every year. See them as a gift – yes they are annoying and expensive, but you already know they’ll happen, so they’re easy to plan for. Saving for these over the course of the year doesn’t hurt quite so much. Yes, this takes more restraint than not buying the coffee from point 4, but believe us when we say it’ll change your world.
Now when your friend invites you on a last minute holiday, you’re far more likely to say yes than if you’re scraping by month to month.
“Great, I’m saving and not spending as much; but what am I supposed to do with this money?”
Brilliant question! Maybe you should consider an ISA (Individual Savings Account). There are many benefits including:
It is worth noting however, that investing comes with risk
The value of your investments and any income from them can go down as well as up and you may not get back the original amount invested. Tax allowances and the benefits of tax-efficient accounts are subject to change and tax treatment depends upon your individual circumstances.
If you do have a Child Trust Fund and you’re interested in making your savings work harder, maybe we can point you in this direction.
From your 18th birthday your Child Trust Fund will automatically transfer into a matured Child Trust Fund and you’ll have full control of the account. Find out the full process and what options you have with your account by using the button below.
Only once you turn 18 you are able to make an election on your account. If you’re ready to make a decision you can do so by downloading our CTF Election form. Simply fill it in and send it back to us whatever you decide to do. Download the form using the button below.
