Managing your Feelings and Finances
If headlines about the cost of living crisis makes you feel anxious, you’re not alone. Recent research found that 60% of 11-18 year olds worry about their parents or guardians not having enough money to buy them the things they need.
Three quarters of young people questioned in a survey by Yorkshire Building Society also said that their parents or guardians had talked to them about the need to cut down on certain things. And more than a quarter of these young people came from families cutting back on essentials such as groceries and fuel in order to save money.
According to Tess Bolton-Gould of YouTube channel Tess – Frugal Living, if you’re feeling worried about your or your family’s money situation, it’s important to talk it over with someone and get help and support.
‘Having no money can make you feel different, angry, down or not as good as others,’ says Tess. ‘It’s important to remember that your value as a person is not connected to how much money you have.’
Tips for staying on top when money is tight
- You can have fun with friends and family wherever you are. You don’t need to be skiing in France to have a good time. You could have the best afternoon sitting playing cards at your kitchen table. It’s the people you connect with who matter.
- Remember you’re not alone. Many people find money a worry, so finding someone who understands your situation can be a huge support.
- If you’re anxious about your family’s financial situation, try to talk to your parents or guardians about it. Ask all the questions you want to ask. Things may not be as bad as you fear, and at the very least you will have opened a conversation. If you don’t feel able to talk to them, consider talking to another trusted adult or a friend. The main thing is not to carry your worries alone.
- The best things in life are free. Hanging out with your friends at home, playing football in the park, listening to music with friends and family are all free and bring so much pleasure. Make use of free galleries, festivals and libraries too.
Money Management Tips for Teenagers
- Stick to a budget. Budgeting is the process of working out what money you have coming in, what money you spend and trying to make sure they balance. It puts you in control of your money and helps you to make better decisions about what you can spend and save.
- Live within your means. One of the most important life skills you can learn is to live within your means. If you get £10 a week allowance, that’s the maximum you can spend.
- Save a bit. You don’t have to spend all your money; save some each month. It’s tempting to spend once you start earning a wage, but the security that comes from saving can’t be beaten.
- Be a savvy shopper. Buy second hand and compare prices.
- Learn the difference between
- ‘want’ and ‘need’. If there’s something you are planning on buying, ask yourself if you need it – or just want it.
- Avoid debt. Stay away from credit cards and loans.
- Save for things. It’s fine to want/need to buy things; however, if you can learn to wait and save for them, you’ll avoid being in debt. Being debt-free is the key to being financially stable.
- Create an emergency fund. Then, when you need to buy something big you won’t have to take out a loan – you’ll already have the money.
- Invest in yourself. This might mean gaining qualifications but can also mean working on your soft skills. Employability is greatly affected by soft skills such as being reliable, honest, hard working, willing to try new things, and being approachable and friendly.
- Set financial goals. Think about what your goals are in life and start working towards them now. Your future self will thank you. You don’t need to earn a lot to retire early or own your own home with no mortgage. You just have to make clear choices about what you do with the money you earn.
- Learn about compound interest. There’s a saying: ‘People who don’t understand compound interest, pay it. People who do understand compound interest, earn it.’
- Start now. The sooner you begin to plan for your financial future, the more successful it will be. You don’t have to have a lot of money to end up with a lot in the bank. You just need to start saving and develop good money habits early.