Care Leavers - Money
Learning how to manage money will help you avoid getting into debt. This means budgeting, to ensure that you don't spend more money than you get in.
Keeping track of money is easier if you open a bank or building society account. Once over 18 you will probably be provided with a cashpoint/debit card and cheque book.
When living independently you will be responsible for all household bills. These include rent, water rates, electricity, gas, food. Don't forget about a TV licence, as there is a big fine if you get caught without one.
At 18 you are required to pay council tax, although people on low income or benefit get a reduction.
Saving money
Reduce temptation, remember:
- The more we go shopping the more we will probably spend
- The more we watch TV the more we will probably spend
- The more we read magazines the more we will probably spend
Identify the difference between your wants and your needs. Wants might be immediate, but you must plan to meet your needs.
Keep track of everything you spend. This will allow you to:
- Know how much money you've got and how much you can spend
- Cut back in certain areas if you've been overspending
- Don't run up debts on which you have to pay interest
- Prove to your bank, or bank manager, you are handling your money sensibly
Shop around
Buy fruit and vegetables from the market where its cheaper. Avoid pre-packed ready meals which are expensive.
Be careful with credit - the APR on any credit card or loan is the amount you will have to pay back to the company you borrow from for the privilege of having the money. Some cards' APRs can be over 20%, especially store cards.
How to get help
Overspending on credit is the main cause of debt. If you do get into debt problems, you should seek help. The more you ignore the problem, the worse it will get. CAB and CARA (see Contacts below) can get in touch with the people you owe money to, and arrange for you to pay off the debts in small, manageable amounts.
Loans and credit are not usually available for people under 18 because, legally, you cannot be held accountable for your own debts at this age.
Overdrafts are potentially less risky - although they can still carry charges. An overdraft is an agreement with your bank or building society, allowing you to borrow up to a certain amount. If you are in further or higher education you may be able to get an interest free overdraft.
Contact Details
For more information please contact 16+ team
Telephone: 0808 16 02 211 - for young people only.
Telephone: 0121 788 4200 - for all other people.
Emergency Duty Team: 0121 605 6060
Email: 16plus@solihull.gov.uk
CAB Solihull
The Priory, Church Hill Road, Solihull, B91 3LF
Tel. 0870 120 2425
CAB Shirley
274 Stratford Road, Shirley, B90 3AD
Tel. 0870 120 2425
CAB Chelmsley Wood
Stephenson Drive, Chelmsley Wood, B37 5TA
Tel. 0870 120 2425