Money saving tips you’d pass onto your children

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The other day I was thinking about what I’ve learned over the last few years when it comes to finances — and what I learned from my own parents. It’s often the simplest tips that are the most effective. So, I asked SavvyWoman Facebook page users and Twitter followers followers for ‘money saving tips you’d pass onto your children’. Here’s a selection:

Spending

Reducing your spending is easier if you follow these simple tips:

1. Buy fewer, high quality things (from Gaeia via Twitter).

2. If you can’t afford it, don’t buy it (from Eileen via Twitter).

3. Don’t spend what you don’t have (from Danny via Twitter).

4. Don’t ever get a credit card (from Karen via Twitter).

5. Pay off any spending on your credit card in full and don’t bother with store cards (tip from Jayne via Twitter). Credit cards can provide valuable consumer protection, but the interest charge can add up to a substantial amount if you don’t pay it off in full.

SAVVY TIP: Read more about the consumer protection that credit cards can provide in my article understanding your credit card rights under Section 75.

Budgeting

1. Get some basic budgeting skills. If you don’t have these, you may have to learn how to budget the hard way (from Sarah via Twitter).

2. Keep a budget or spreadsheet and update it regularly. Don’t leave budgeting to chance (from Sara via Twitter).

3. The younger you start learning about money, saving and avoiding debt, the better (from Vivi via Twitter).

4. Learn how to reconcile your bank account(s) and make sure to do it with every statement (from Judy via Twitter).

Saving

1. Try and save what you can, when you can (from Gaynor via Twitter).

2. Save regularly, even if it’s just a small amount (from Mary via Twitter).

3. Always save 10% of any earnings from day one, then you’ll never miss the money. Saving will become the norm and won’t seem hard (from Sarah via Twitter).

4. Spend less than you earn. Count 10% of what you earn as part of your spending but save and invest it (from James via Twitter).

5. Open a junior account at your local credit union or, even better, find out if your local school has a collection point (from Louise via Twitter). Credit unions are collectively owned and run financial co-operatives offering savings accounts and loans (and sometimes current accounts).

SAVVY TIP: Some schools will collect contributions towards savings accounts from ‘collection points’ in the local community, such as schools. You can find out how to get a low cost loan from a credit union in my article.

6. Save all your life so you aren’t reliant on a state pension or as it was described on the Facebook post – on the crumbs the government see fit to throw you when they finally let you retire (from Barbara via Facebook).

7. Trust your instincts. If it seems too good to be true, it probably is (from Jan via Facebook).

Setting up home

– When setting up home, don’t think you have to have everything at once. Save and buy when you are able, or do second hand (from Pat via Twitter).

– If money is short make sure you differentiate between want and need. You may want a new TV but you need to pay the mortgage (from Hilary via Twitter).

– Don’t rent the first home you’re offered. Check the energy performance certificate to see if you can afford the gas and electricity as well (from Linn via Twitter).

Working

– Understand that ‘income’ and ‘job’ aren’t the same thing (from GreatauntUK via Twitter).

– Join a union to protect what you’ve got (from Jo via Facebook).

Related articles:

Children’s apps and debits cards to help them manage money

Your state pension when you’re bringing up your children

Using the Child Maintenance Service to arrange maintenance for your child

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Photo credit: Morguefile/mcconnors