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Keeping it and Spending it
Earning a wage? Whatever your income you may want to think about saving as well as spending your money.
Banks and building societies
When you open an account with any bank or building society you gain a safe place for your money and access to a whole range of financial services. There are two main types of bank and building society accounts: current & savings accounts.
Current accounts - these are for everyday financial transactions, to access your money quickly and easily. A current account can be useful to you even before you're working: you can pay money in at any time, or if you get a monthly allowance, arrange for it to be paid into your account by standing order. When you open a current account you'll be given a cash point (PIN) number to access your account and, at 18, a cheque book and bank card.
Some banks and building societies are starting to make cheque books and bank cards available to 16 year olds who have a regular monthly income.
You receive a regular statement showing how much money you have put in (deposited) and how much you have taken out (withdrawn). Keep a check on the balance of your account, it can change daily and running up an overdraft can be expensive.
Savings accounts - these are for the money you're prepared to put aside and add to over time. They tend to have better rates of interest than current accounts. They can be added to regularly or when you have some cash to spare.
Bank cards
Your bank card may have up to three functions:
- A cheque guarantee card
- As a debit card
- As a cash machine card
However used the money will be removed from your account either immediately or within 1- 3 days.
Credit cards
These are only available to over 18s who have a regular income. Credit cards allow you to pay for goods and services on your card up to an agreed limit. You then pay all or some of your bill when you receive your monthly statement.
Getting into difficulties with your credit card is easy. So keep an eye on what you have spent and remember to try and pay back as much as you can each month.
Store Cards
These are credit cards issued by individual shops. You can use them to pay for goods at that store. On many the interest rate is high. So take care not to overspend and pay off as much as you can each month.
Pensions
It does seem very early to be thinking about your pension but you may find that your employer runs a pension scheme or allows you to open a stakeholder pension.
