Money Skills Hub

How to Start Smart

Understanding money is exciting, empowering, and maybe even a little overwhelming. Whether it’s from a job or pocket money, learning how to manage your money early on can make a huge difference in the future. By building smart habits now, you’ll be able to afford the things you really want later.

What Are Needs vs Wants?

When earning income, what you do with that money matters. Learning to manage this helps you build confidence and make smart choices.

Start by understanding the difference between needs and wants:

  • Needs are essentials like food, clothes, and school supplies.
  • Wants are extras like games, snacks, or new trainers.

Thinking about your spending this way helps you make decisions that support your goals, not just your impulses.

Budgeting Basics

A budget is simply a plan for your money. It helps you stay in control and avoid overspending. Here’s how to build one:

  1. List your income: Include everything - job earnings, pocket money, gifts.
  2. Track your expenses: Write down what you spend, even the small stuff.
  3. Categorise spending: Split your spending into needs and wants.
  4. Save a little every time: Try saving 10p out of every £1 you get.

You can use a jar, envelope, or savings account to keep your savings separate. It adds up faster than you think!

Need a guide?

Our friends at Talk About Money have put together a super simple guide to help you take your first steps into budgeting.

FIND OUT MORE

Set a Goal That Excites You

One of the best ways to stay motivated with money is to save for something that genuinely excites you - like a new game, headphones, or even a festival ticket.

Instead of spending your cash on little things that don’t last, choose one item or experience that really matters to you. Once you’ve picked your goal, break it down: how much does it cost, and how long will it take to save up?

Seeing your money build up over time is super rewarding, and reaching your goal feels way better than spending on things you’ll forget by next week.

Spend Smart, Not Fast

It’s easy to get caught up in the moment and spend money just because something looks cool or your friends are buying it. But smart spending means thinking ahead. Before you buy, ask yourself: "Will I still want this next week?" If the answer’s no, it might be worth skipping. When you spend wisely, your money goes further - and you’ll have more left for the things that really matter to you.

You could consider opening an easy access savings account. It’s a simple way to keep your money safe, separate from your everyday spending, and still available when you need it.

You're in Control

Managing your money is a powerful step toward independence. By understanding your spending, setting exciting goals, saving regularly, and thinking before you buy, you’re building habits that will help you feel confident and in control. Every smart choice adds up, and the more you practice, the easier it gets.

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