When you start managing your finances, there are many factors to consider. While it may seem overwhelming, this guide highlights the key points and directs you to our best resources to help you manage your money effectively.

Getting Started with Your Finances

Whether you’ve just graduated, moved out, or started your first job, organizing your finances now will make it easier to achieve larger financial goals in the future. 

We also have specific guidance for students in our Student and Graduate Money section.

Understanding Pay and Pensions as a Young Worker or Apprentice

When you begin a job or apprenticeship, ensure you receive at least the minimum wage for your age and that you are taxed correctly. It’s also important to start saving for retirement as soon as you begin earning.

– National Minimum Wage: Find out the minimum wage for your age group.

– Payslip Details: Understand the payments and deductions on your payslip with our guide, “Understanding Your Payslip.”

– Apprentice Pay: Learn about the specific rules for apprentice pay in our guide, “Apprenticeships Explained.”

– Temp or Agency Work: Discover the pay and benefits rules for temp or agency workers in our guide.

– Workplace Pensions: If you’re 22 or older and earning over £10,000 a year, your employer will enroll you in a workplace pension. Learn more in our guide, “Automatic Enrolment – What to Expect from Your Employer.”

– Opting into a Pension: Even if you’re under 22 or earn less than £10,000 a year, you can choose to join a workplace pension. Our guides explain the pros and cons and how to enroll.

Paying Rent and Bills

Living expenses, such as rent and utility bills, are likely your largest monthly costs. While you may not be able to shop around for energy deals currently, you can still manage your bills effectively.

– Affordable Rent: Understand how much rent you can afford and the contractual terms before signing any lease.

– Credit Rating: Avoid damaging your credit rating by seeking help if you have trouble paying rent. Our guide, “Help with Rent Arrears and Problems with Paying Your Rent,” can assist.

– Household Bills: Learn tips for managing household bills in our guide, “How to Save Money on Household Bills.”

Managing Money and Increasing Your Income

Ensure your income covers your monthly expenses. A weekly budget can provide a clearer picture of your finances.

– Budgeting Basics: Start with our beginner’s guide to managing your money and tips for living on a budget.

– Choosing Bank Accounts: Learn how to choose the right bank account for your needs.

– Irregular Income: If your income varies, our guide, “How to Budget for an Irregular Income,” can help.

– Investing: Be cautious about investing, especially in cryptocurrency or individual stocks. Read our guide to understand the risks.

Avoiding Money Mule Scams

Young people are often targeted by scammers to become money mules. This illegal activity involves moving money through your bank account and can lead to serious consequences. Read our blog on the dangers of becoming a money mule.

Benefits for Young People

If you’re looking for work or have a low income, check if you’re entitled to benefits, including Universal Credit. Benefits and grants eligibility can vary based on your circumstances and location in the UK.

– Childcare Support: Find out about childcare support in our guides, “Help with Childcare Costs” and “What Benefits Can I Claim if I’m Pregnant or Have a Baby.” More information is available at childcarechoices.gov.uk.

– Job Start Payment: In Scotland, young people aged 16 to 24 can receive financial help when transitioning into work.

– Support for Young Carers: Financial support may be available if you’re under 18 and a young carer.

– Care Leavers: Benefits may be available if you’re 16 or 17 and a care leaver living independently.

– Benefit Scams: Be aware of scams offering help to sign up for government grants in return for a cut. Read our guide on Universal Credit scams.

Saving for Emergencies and Your Future

Develop the habit of saving regularly, even if it’s a small amount. Savings can help you handle emergencies without borrowing money.

– Saving Tips: Review our beginner’s guide to saving and our guide on how much to save for emergencies.

– Child Trust Funds: If you’re over 18 and born between 1 September 2002 and 2 January 2011, you can access your child trust fund. Learn more in our guide, “Child Trust Funds.”

– Government-Backed Savings: The Lifetime ISA (LISA) and Help to Save account offer bonuses for savings. Learn more in our guides about these accounts.

Protecting Your Possessions

Consider insuring important possessions that would be difficult to replace if lost, damaged, or stolen.

– Renter’s Insurance: Decide if you need contents insurance as a renter with our blog, “I’m Renting My Home – Do I Need Insurance?”

– Gadget Insurance: Learn about insuring personal possessions like mobile phones.

– **Car Insurance**: Understand the costs of car insurance and how to reduce them in our guide for young drivers.

Responsible Borrowing and Credit Use

Borrowing can help spread the cost of purchases but can be expensive due to interest. Ensure you understand the total cost and can afford repayments.

– Affordability: Determine if you can afford to borrow and understand the costs over the repayment period.

– Overdrafts: Learn about overdrafts in our guide.

– Credit Unions: Access affordable borrowing rates through credit unions.

– Buy Now Pay Later: Understand how to use this payment method responsibly.

– Credit Rating: Be aware of how credit applications and repayments affect your credit score.

Dealing with Missed Payments

If you miss a payment, use our Debt Advice Locator tool for free and confidential help online, over the phone, or near you.

Handling Money Problems

Financial problems are common, especially with rising living costs or irregular income. Don’t hesitate to seek help if you encounter issues.

– Prioritizing Debts: Look at our guidance on how to prioritize debts and use our bill prioritizer tool.

– Seeking Help: Find professional help quickly with our debt advice locator tool.

– Mental Health: Financial stress can affect your mental health. Our guide on money problems and mental wellbeing can provide support.