Saving is extremely important, especially if you want to put some money away to buy something at a later date. But it is also important to save for your future and make sure that you are covered financially for anything unexpected.
Set yourself a goal
Money is your ticket to freedom. With cash in the bank you can do what you want and when you want to do it, without having to rely on your your parents or anyone else.
Start by downloading the cut-out little money box and start saving, whether it be just 10p a day, 50p or even a £1. It doesn't matter, as it will all add up over time. If you really wanted you could download many cut-out little money boxes and save 1p's in one, 10p's in another, and so on.
This cash could come in handy to you one day, perhaps:
- to pay for a holiday with your friends
- to pay for a new laptop, iPad, etc
- incase of emergency when you are stuck for cash
These are just some of the ways in which you may finding having a secret stash of cash stored useful.
The best thing to do with your cash, is split your savings:
- Keep some in your 'little money box' so that you can get your hands on it when you need too.
- And put the rest in a savings account, where you could invest your money so that you will gain bigger profits.
Get in the habit
Saving comes natural to some people, and to others proves very difficult. However, the best way to learn is to start practising. For example, if you are given £10 a week in pocket money, you might save £2 of it each week. Over 5 weeks, you will have saved £10, and over 10 weeks, this will be £20.
If you saved 1 quid a day from your 13th birthday you could have over 13k on your 50th birthday (And with interest you could even have over 50k!)
Don't pay tax on your savings
Whilst you are under the age of 18, you should not have to pay tax in order to receive interest. Anytime you open an account that pays interest you should complete a special government form called 'R85'. This will be given to you be your bank or building society and whilst you are under 18, you will have to get your parents to complete and sign this form on your behalf. Once completed, you won't have to pay tax on interest. Even once you turn 18, you can still choose a tax-free account to avoid paying any tax (just make sure you get a good deal).