One thing I wish I had been taught in school was about finances. We were taught about how to carve wood with one of those wood carving machines (like when am I going to need that?!) but nothing about finances. Unless you count learning how to add and subtract money sums as financial education. Anyway, financial education is so important for youngsters, particularly in high school. When I left high school, I had no clue about mortgages, the difference between credit and debit cards and how to save effectively. Amongst other things. I wish I was given money advice in school lessons.
I had a small child’s savings account which I had no idea why I had it. My Dad used to make me put my birthday money in there. Bastard. What happened to that savings account I hear you ask? Just like Bebo, it’s history. Don’t even know if it’s still an open account or not. Anyway, I have a savings account with my bank and that’s all that matters. I’ve kept it ticking over throughout the years and it feels satisfying that I have a bit of money in my savings to go to in case of an emergency.
Thinking back to just before I left comp at 16, I wish I knew how to handle money properly before stepping out into the big wide world. Fast forward back to today, there are plenty bits of money advice I would give to my younger self.
Here are the bits of money advice I would give to my younger self:
1) Being financially savvy will make you feel more independent
Knowing how to handle my money has made me more independent. Learning to plan how to spend and save my income every month is so freeing and makes me feel organised. Having that control over how I choose to utilise my money makes me feel so independent. The more responsible I am with my money, the more confident I am with it. I always think “It’s my money and I should choose how to spend or save as I please”.
2) Save, save, save
However much you have in your bank account at the end of the month, before your next payslip goes in – save it. It can be as little as £20 or as big as £200 (if that’s even possible), it’s surprising how quickly it can add up by the end of the year. Now that I’m looking ahead to my future more these days, I like to keep my savings pot topped up monthly. It’s very comforting to know that I have a little nest egg in case of any rainier days ahead.
3) It’s ok to treat yourself once in a while
I know I’ve gone on about saving a lot during the financial month, but it’s ok to treat yourself once in a while. Whether that be a takeaway or a new pair of shoes, or whatever floats your boat, it’s ok to have a little spending splurge. After all, you’ve worked hard for your money, so why shouldn’t you treat yourself?
4) Make sure you have a pension
As soon as I entered my twenties and started working properly, I opened a pension. When I do reach retirement age, I need to know that I have a good pension that will pay out to help me out for the rest of my days. Hopefully, your workplace will set up a pension for you, where they will add a little chunk of your wages to it every month. You can always add money to your pension yourself if you don’t want to add it to your savings account. Again, I find it comforting that I have a pension waiting for me.
5) Keep note of your income & outgoings
I started keeping track of my finances when I started working. It’s an excellent way to keep on top of my income and outgoings every month. It allows me to see when I need to start being careful and stop myself from overspending. I try and be careful what I spend in the month, but you never know when something crops up eg car trouble, a birthday, needing to buy a leaving present for someone at work etc. When I spend money, I write it down in my notebook and take it away from my monthly income so I know what I have left every time I spend money. A good way to keep organised with money.
6) Only have direct debits which are necessary
Sometimes, you sign up for a direct debit which eventually becomes unnecessary. When it does become that way, cancel it. Don’t let a needless direct debit take money from you every month. You can put that money to good use.
7) Remember, it’s YOUR money
Don’t let anyone tell you how you should spend and save your money. At the end of the day, it’s your money, do with it as you please, but be as responsible as you can. Trying not to sound like your mother here, but you know, just be sensible!
