After the unexpected loss of my younger step-sister last year, it became very clear to my husband and I that we needed to sort out our finances. Like us, she assumed because she was young nothing needed to be done, so when we sadly lost her it was a nightmare for all involved.
We made an appointment with our bank and they were fantastic. They have fixed our mortgage for a lower rate than we were paying on the variable rate we had stuck to when our original fixed rate term finished and they have even helped us with our wills.
It has really got me thinking – at what age should you start teaching kids about money?
For me, it is as early as possible!
Each of my children has been set up with a savings account from birth. If I am honest, they haven’t saved as much as I had hoped and we are now moving their savings to a Children’s ISA so they get a better interest rate – apart from Isaac who was lucky enough to receive the Child Trust Fund from the government.
From 11, they have all had an account opened for them and an allowance paid in, to teach them about the value of money and how to budget and save. We have had tears and tantrums at times as they’ve blown it all straight away, but the greatest success was when one of them managed to save for the laptop he desperately wanted, so it does work.
I truly believe that children should be taught to how manage their money in schools, to prepare them for the outside world. At 18 I was given access to so much credit that it took me years to pay back – if only I’d known it was a stupid trap to fall into and a nightmare to climb back out.
As an adult, my main savings have been through work share schemes, which are a fabulous way of putting money away without feeling the pain and getting some fabulous returns too. The only other time I really saved was when we were getting married.
So, what do you do if your finances are all over the place?
My advice is to start from the basics, compare bank accounts and check their reviews to help choose the bank account that’s right for you. There are so many to choose from, so have a clear idea of what you want before you start – check out this aspiration bank review for some inspiration. For example, mine gives me mobile phone insurance, breakdown cover, travel insurance and a free small overdraft for a small monthly fee. The monthly fee is less than I would pay my phone company to insure my phone, so it makes good sense.
Secondly, if you have any credit cards – pay them off as quickly as you can and only use a credit card if you really have to – the boots you really want aren’t a necessity!
Thirdly, if you can save – even £10 a month – do it!! It is surprising how quickly it adds up and you may get that holiday you so desperately need or it will be there to help for any unplanned emergencies!
**This is a commissioned post**