As a teenager you may be given some weekly pocket money by your parents or guardians, but sooner or later in life you will have to start managing your own money. As you get older you are more than likely to want to go to university or buy your first car or house and to do this you will probably start thinking about getting a loan. But before you do, it is important to remember these three key facts:

• Do not borrow any more than you need to.
• Pay back what you owe as soon as you can.
• Take out the cheapest loan possible.

Start following these tips now and you will be well on your way to a safer future.

Before you settle for the first loan offered to you, it is always best to shop around for a better deal. For instance, would you pay £50 for a new jacket, when you could get the same one in a different store or online for half the price?

With every loan there are usually different interest rates, with some companies having incentives to encourage you as a consumer to borrow more, such as 0% interest for a limited period, reward points, a low fixed rate of interest for a period of time, cashback when you take out the loan, etc. Generally the lower the APR (annual percentage rate), the cheaper the loan is and the better the deal for you. But also remember to check whether there are any hidden costs (as you don't want a nasty surprise later on).

There may come a time in your life when you are older, when you face a rainy day. This may make it difficult to avoid borrowing money, for example, if you are unable get a job and earn income. There is no real harm in short-term borrowing, the real danger comes when this turns to long-term borrowing and then it becomes a real issue and something that you may find hard to resolve.