2070 LAUNCH YOUR LIFE

Important decisions need to be made when it comes to money. How can you budget and make your money go further? How much should you put aside for retirement? How much should you spend?

Read these boxes on spending and saving (adapted from advice from the Financial Services Authority) and then create your Diamond 9.

Budgeting

A budget helps you get a good idea of your money situation. To complete a budget, you need to know your 'money in' (income) and your 'money out' (spending).

Examples of income:

• Pay (e.g. a part-time job)
• Benefits (e.g. Education Maintenance Allowance - EMA; see http://ema.direct.gov.uk)
• Allowance from parents

To help you work out your weekly or monthly income and spending, you can use a budget calculator that can be found on this website: www.moneymadeclear.fsa.gov.uk.

 

Make your pennies go further

If you want your money to go further, you'll probably need to shop around for better-value products or services or ones that have special 'deals' attached. Look in shops, magazines or online for deals and money-off vouchers.

 

You're in charge

Once your budget is sorted, you are in control. Think about whether your income might change. For example, will any part-time job always be able to offer you the hours (and therefore pay) that you expect? Don't forget about 'expense spikes' like Christmas or birthdays.

If your circumstances change, you'll be better prepared if you've already thought about it.

 

Planning ahead

You also need to think about your savings, including a pension. Pensions are very important and it is likely to become harder to save enough money the longer you leave it. You can shop around for a pension just like you can for any other product or service.

You may also want to start saving up money for Christmas, a special occasion, or a holiday. By putting aside a bit each month in a bank or savings account with a good interest rate, the money will soon build up.

 

Recap:

• A budget helps you to get in control of your money situation.
• Looking around for the best deals can save you money.
• Think about the future in terms of money and plan ahead.