Managing Your Money

Understanding where your money goes is the first step in taking control. Money management isn’t about being perfect — it’s about knowing what you have, what you need, and how to make your money stretch.

Good money habits early in life can help you:

• Avoid debt

• Reduce stress

• Plan ahead for things you want

• Make better choices

• Feel confident and independent

You deserve to feel in control, not overwhelmed.

• A budget helps you see your money clearly. It’s simply:

  👉 Money coming in
  minus
  👉 Money going out

  A good budget helps you:

  • Track spending

  • Plan ahead

  • Avoid surprises

  • Save for things you want

  Top Tips for Budgeting

  • Write down EVERYTHING you spend for one week

  • Divide spending into categories (food, travel, fun, etc.)

  • Look at where small habits (snacks, gaming purchases, clothes) add up

  • Set a weekly or monthly limit and stick to it

  • Review your budget regularly

  Budgeting isn’t about restricting yourself — it’s about giving yourself more control.

Saving even tiny amounts builds up over time. You don’t need loads of money to start.

Why Save?

• For something fun (clothes, games, events)

• For emergencies

• For the future (driving lessons, college, holidays)

Tips for Saving

• Set a small goal

• Put aside spare change or leftover money

• Use a saving jar or a separate bank account

• Treat saving like paying a “bill” to yourself

Saving gives you options — and options give you freedom.

✅ 1. Know Your Spending Style

Are you a “treat yourself” spender? A saver? A planner? Knowing your money personality helps you make better choices.

✅ 2. Spend With Intention

Ask yourself:
Do I need this? Do I want this? Or am I just bored?

✅ 3. Don’t Compare Yourself to Others

People show the “best bits” on social media — not their bank balance.

✅ 4. Plan Before You Shop

Write a list. Compare prices. Don’t shop hungry.

✅ 5. Avoid Impulse Buys

Wait 24 hours before buying anything over a certain price.

A bank account helps you:

• Keep money safe

• Get paid

• Track spending

• Save securely

Most young people use:

• Basic current accounts

• Youth bank accounts

• Online banking apps

You can talk to an adult or youth worker if you’re unsure what type of account to open.

Scammers try to trick you into giving away passwords, bank details, or money.

Red Flags to Watch Out For

• “You’ve won a prize!”

• Messages asking for login details

• Fake delivery texts

• Emails pretending to be your bank

• Strangers asking for money

Stay Safe

• Never share passwords

• Don’t click suspicious links

• Check if an email or message feels real

• Ask an adult if you’re unsure

Your information is valuable — protect it.

If you have a part‑time job, your payslip shows:

• Your wage

• Tax and National Insurance

• Hours worked

• Your employer’s details

If anything looks wrong, ask your employer or a trusted adult for help.

Understanding Credit (and Why It Can Be Risky)

Credit means borrowing money now and paying it back later.
It might sound helpful — but for young people, most forms of credit are expensive, confusing, and designed to trap you in debt.

Credit companies make money when you owe them money.
That means they benefit when you’re stuck paying interest, late fees, and charges.

Here’s what you really need to know.

Payday Loans — A HUGE Red Flag

Payday loans are short‑term loans targeted at people who are struggling for quick cash. They might offer money “within minutes,” but they come with extremely high interest rates.

✅ Why Payday Loans Are Dangerous

• Interest can be hundreds or thousands of percent.

• A £100 loan can quickly turn into £300, £400 or more.

• They add late fees, penalties, and daily charges.

• You often end up owing more than you borrowed.

• They’re designed to trap people and keep them repaying forever.

Payday loans create a cycle called debt spiralling — where you borrow to repay what you borrowed, and the debt keeps growing.

✅ Bottom Line

Never use payday loans.
There is always a safer, cheaper option.

Buy Now, Pay Later (BNPL): Klarna, Clearpay, Laybuy & Others

BNPL companies seem harmless.
They let you take something home now and pay later in instalments.

But here’s the catch — BNPL is a form of credit, and missed payments come with consequences.

✅ Why BNPL Is Risky

• Makes it too easy to buy things you can’t actually afford.

• Multiple small “instalments” add up quickly.

• Missed payments create late fees.

• Debt can be passed to collections agencies.

• It can damage your future credit score, affecting renting, loans and phone contracts.

• You can end up paying more than the item was worth.

✅ Why Young People Get Caught Out

BNPL apps are designed to feel:

• Easy

• Fun

• No big deal

But they rely on you slipping up — because fees = profit for them.

✅ Bottom Line

Use BNPL with extreme caution — or avoid it entirely.

Store Cards — “Discounts” That Cost You More

Store cards (from clothes shops, tech stores, beauty stores, etc.) offer deals like:

• “20% off today!”

• “Exclusive member rewards!”

But these are credit cards in disguise.

✅ The Risks

• Very high interest rates

• Temptation to spend more

• Extra fees for missed payments

• Long‑term debt you can’t see coming

• Negative impact on your credit score

A £40 top or pair of trainers can end up costing £80 or £100 once interest is added.

✅ Bottom Line

Store cards are one of the easiest ways to fall into debt young.
The discount isn’t worth the long‑term cost.

Interest: The Hidden Money Drain

Interest is how lenders make money.
It’s charged on top of what you borrowed.

✅ Simple Example

Borrow £100 at high interest → owe £130
Miss a payment → owe £160
Keep delaying → owe £200+

You can end up paying double or even triple the original amount.

✅ Why Interest is Dangerous for Young People

• You often don’t see it building up.

• It can grow every day, week, or month.

• It keeps you stuck paying long after the purchase.

• If you miss one payment, the cost explodes.

✅ Bottom Line

Interest is a trap — the less you borrow, the better your financial future will be.

How to Avoid Getting Trapped by Credit

✅ 1. If you can’t afford it now, don’t buy it.

This is the strongest money rule you can follow.

✅ 2. Save for things instead of borrowing.

You’ll pay less and feel more in control.

✅ 3. Know your triggers.

Sales, ads, influencers, and trends create pressure to spend.

✅ 4. Delete apps that tempt you to overspend.

Your future self will thank you.

✅ 5. Ask for help early if you’re struggling.

Debt gets worse the longer it’s ignored — not because you’re bad with money, but because the system is designed that way.

What To Do If You’re Already Struggling With Credit

You are NOT the only one.
Lots of young people get caught out — these systems are designed to confuse you.

✅ Steps to take:

• Stop using the credit option immediately

• Write down what you owe

• Tell a trusted adult or youth worker

• Contact organisations that can help you with budgeting or debt

• Set up a realistic repayment plan

Support is confidential, non‑judgemental, and there to help you get back in control.

Online shopping is easy — sometimes too easy.

Tips

• Compare prices

• Avoid impulse buys

• Use secure websites

• Keep track of subscriptions

• Don’t save card details unless you must

If your family is struggling with money, you are not alone.
Rising prices can affect anyone, and it’s okay to ask for help.

Support is available for:

• Food

• Bills

• Housing

• Travel

• Essentials

• Debt problems

Money worries can affect your mental health, so make sure to check out the mental health and anxiety sections if you’re feeling overwhelmed.

Citizens Advice – Ask Us Wirral

Offers specialist benefits, debt, and housing advice delivered by phone.

Local Wirral Numbers:

• 0808 278 7848

• 03444 111 444 (national)

National Numbers:

• 0800 144 8848 (freephone)

• Textphone: 18001 0800 144 8884

Help to Claim (Universal Credit):

• 0800 144 8 444

Website:

• https://www.citizensadvice.org.uk

Barclays LifeSkills

Helping young people build good financial habits and understand money.

Telephone:

• 0345 600 232

Website:

• https://barclayslifeskills.com

Involve Northwest

Provides free community support including:

• Community connectors

• Job coaches

• Welfare and debt advice

• Clear Minds support

• Domestic abuse support teams

Telephone:

• 0151 644 4500

Email:

• info@involvenorthwest.org.uk

Website:

• https://www.involvenorthwest.org.uk