2070 LAUNCH YOUR LIFE

The next stage of your life is likely to involve going into further education or university, or perhaps getting a full-time job. You can think ahead and make sure you are ready for these situations, or choose to deal with them when they happen.

Have a look at the following information and then create your Diamond 9.

Starting work

Top five 'need to know':

1. 1 Get to grips with the figures on your pay slip.
2. 2 Understand the difference between your 'gross' and 'net' income.
3. 3 Add up everything you spend between paydays.
4. 4 Look into any benefits offered by your employer, such as pensions, life assurance and travel schemes, as well as child care and flexible working schemes, and decide whether you would benefit from making the most of them.
5. 5 Set yourself a savings goal (like a holiday), with a specific deadline to save the money by.

Source: www.whataboutmoney.info

 

Budgeting for further education

• Tuition fees: You usually pay for these in several chunks or installments. If you need help, contact your local education authority for advice.
• Household costs: How much you pay will depend on location and the type of accommodation you choose. Halls of residence often charge an all-inclusive fee that covers rent, cleaning, electricity, etc. and also some of your meals. If you choose to live in a shared flat instead, you will be expected to pay an equal share towards the cost of rent and bills. As a full-time student, you will able to get either a discount on council tax or you won't have to pay it at all.
• Study essentials: There are often money-off deals for textbooks, stationery, computer equipment and photocopying. Also, find out whether your university/college offers free or subsidised photocopying and equipment.
• Travel: Take into account the cost of travelling around town or visiting family and friends. If you travel by train, think about investing in a Young Person's Railcard www.16-25railcard.co.uk) to benefit from fare discounts. If you're travelling abroad, it's a good idea to get an International Student Identity Card (ISIC), which entitles you to thousands of discounts worldwide (www.isiccard.com).
• Living costs: We're talking groceries, clothes, mobile phones and everything else you couldn't live without. You may be entitled to help towards healthcare costs, such as prescription charges, eye tests and dental checks, so ask your student union or healthcare centre. Set aside some money for nights out, and remember that many places offer discounts to students with an NUS card.

Source: www.whataboutmoney.info

 

First job after school

'I've started college. I do one day a week, release from work. The money varies. Some people are on x amount, some people, you think, what are you working for that amount of money for? But you just don't know.

I think if you work for a big company, there's a set wage that's the going rate for an apprentice. But it can really vary from quite a low figure to quite a high one. I wouldn't say I'm earning the top money, but I'm not earning what some people are earning down at the bottom, so I think I'm doing all right.

I have thought about getting a pension. I mean, I've already got one. I've been paying about £10 a week in for a year now. Someone came into work and talked me into it. I thought it was a good idea at the time. I suppose it is a good idea actually, in the long run. You don't really see it, so it just goes straight into your savings account and in 50 years' time I'll just have this big wedge of money.

Find a job and stick to it, because in the long run, it'll benefit you. The more you put in, the more you'll get out of it.'

Source: Adapted from 'Financial help for your first job after school', www.whataboutmoney.info

 

Learning to earn

This bar chart shows the average annual earnings of men and women, depending on their level of education.

 

Recap:

• Think about whether going to university or training will allow you to earn more, or whether it's better to go straight into work.
• If you decide go into further education or university, think about the money you'll need for tuition fees, living costs, textbooks etc. It might be a good idea to prepare a budget.
• When you do start working, you'll need to understand from your pay slip how much of the money you earn actually goes to you (remember that a proportion of it will go towards things like tax and National Insurance).