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Money Management

You will have heard many stories from people, and also from the news, that many and many people are now in serious debt and find it very difficult to get out of the debt.

It is now easy for people aged 18 and over to get store cards and credit cards. This means they can buy things now and pay later. Unfortunately, many people do not pay off their monthly arrears (the amount expected to be paid to the store card/credit card company) and in the next month, the debt goes up as the interest is added to the debt. This often leads to further debt and it gets more difficult to pay the larger amount. This continues to increase each month until the debt plus interest is paid.

It is also easier for young people to get loans now, and this can lead to difficulties if the monthly payments are not paid.

For many people this leads to huge amounts of worry and stress. If the debt is not paid for a long while and the debt ends up in a large amount of money, the person may feel unable to pay and in serious cases, the person may need to be declared bankrupt. Bankruptcy is serious and involves legal action. What often happens is that all things you own are taken away to pay off the debt and you end up with nothing.

Young people are often found not caring too much about their finances particularly in relation to pensions and savings. They often feel they are too young to worry about these things and will ‘come to these when the time is right’. Unfortunately this is a bad move as starting saving later may not provide enough for later life.

Careful money management includes:

  • Putting aside money into savings for ‘emergencies’ such as replacing broken/faulty household items (washing machine, TV, cooker, etc)
  • Being aware of what needs to be paid if you leave home, e.g. mortgage/rent payments, council tax payments, house and contents insurances, electricity and/or gas bills, food and drinks, toiletries, mobile phone charges, TV licences, car tax payments, and many more
  • Working out how much money you will spend for special occasions, e.g. birthdays, Christmas, social events, outings with friends, holidays, etc

You will need to think carefully how you will afford the life you want to live. You need to have some fun in your life so it is worthwhile thinking about your money and work out how you will afford to live with ‘luxuries’.

  • Don’t buy things that you can live without.
  • Be aware how tempting store cards, loans, and credit cards can be. Be firm to say no if you know you may have problems in paying back.
  • Do you know where to go for help if you find yourself with money problems? Find out what help is available.
  • Be sure to act quickly if you find yourself in debt.

Check out the other sections below...

Contraception
Contraception
Drugs
Drugs
Money Management
Money Management
Sexually Transmitted Infections
Sexually Transmitted Infections
Volunteering
Volunteering
Skin Cancer and the Sun
Skin Cancer and the Sun
Smoking
Smoking
Alcohol
Alcohol
Diabetes
Diabetes
Obesity
Obesity