Managing money in uncertain times

Review your outgoings

When you have a busy life, it can be difficult to keep track of everything you’re spending. So take advantage of any spare time you do have to review your outgoings and identify where you might be able to make a saving.

Your outgoings are the regular amounts of money that you spend every day, week and month. This could be anything from your weekly train fare to a monthly gym membership.

Start by simply writing down a list of the regular payments you make from your accounts. It should then be easier to see how much you’re spending in total and start to cut down on your overall costs.

Outgoings like subscriptions are a good place to start. Are you still watching TV shows on the streaming service you pay £7.99 a month for? This is the kind of outgoing that can quickly eat into your money and leave you short for the more essential things you need. By being more aware of the expenses that are coming out of your account, you’ll start to feel more in control of your finances.

Look at alternatives

Don’t be afraid to look for an alternative when you think you might be paying too much for something. Companies are fighting for your business even more these days so they will want to try and remain competitive with their prices to attract new customers.

Always be on the lookout for a deal and compare prices on sites like ‘Compare the Market’ or ‘Money Supermarket’.

If you’re feeling loyal, try and speak to your current provider and see if they will give you a better deal. Your display of loyalty will make them more likely to want to keep you, so they may give you a better price to keep your custom.

Cut back on unneccesary purchases

Ask yourself some basic questions:

What is really necessary to you in your life? What could you do without?

A good way to manage your money is to try and cut back on the things that are not essential right now. It may seem like a good idea to treat yourself to something special from a shop or online store in order to cheer you up or distract you, but in the long run it could do more harm than good.

To make sure you’re able to afford a non-essential purchase every so often, it’s a good idea to ensure you have some savings so that you can be prepared for an unexpected cost. A good way to prepare for extra expenses is to regularly save the equivalent of one of your usual bills. You will then have a pot of money to dip into in an unexpected circumstance, or for when you do need to treat yourself!

If you find yourself relying on things that are quite costly to help your mood in the current climate, click here for our advice on other ways to help boost your positivity, without spending money.

Create saving pots

Make a list of the things you spend money on. Highlight them in green if you ‘need’ this item and pink if you ‘want’ this item. You will probably be surprised by the number of items that you could cut out of your outgoings and redirect into a ‘saving pot’.

What things were you spending money on before that you’re not now? Travel costs, shopping for clothes, etc., might just be some of them. Consider setting up different ‘saving pots’ and put the money you would have spent in each pot. Most banks have this feature on their apps or online banking systems. If you're no longer buying lunch at the shop every day because you’re cooking at home, that £5 a day that you would have spent will build up, and over time you will have accrued some savings you can be proud of.

Ask for help from a trusted adult

If you have someone in your support network such as a family member or another grown up you can trust, talk to them about your finances, explain the situation and hopefully they’ll be able to help you. They may be able to give you some tips on how to manage your money better in the future.

Someone at your school may also be available to help so talk to your form tutor or another adult at the school that you trust.

You could also contact your bank. Most banks have an online chat service, or you can pop into the branch and speak to someone in person. Although they might not seem like the first people you want to approach about your money concerns, the banks do have a responsibility to support you, even with your financial difficulties. They will help you with solutions that fit your circumstances - these could include deferring a payment or giving you a small overdraft to cover costs while you are experiencing any shortfalls. 

So, what now?

The activities below have all been designed to help you get fully ready to take your next steps - whatever pathway you choose to take. Each set of activities ranges from a short activity which should take no more than 30 minutes, through to portfolio activities, which are longer, project-based tasks. The more time you spend on each activity, the more you'll get out of it, but you should be able to find something each week to fit into your schedule.

Why not start with the short activity first and then work your way through the remaining activities until you’ve completed them all?

Short activity

Imagine that you've received an unexpected bill and have to cut back on your outgoings in order to pay that bill.

• From your account statement or from memory, write down a list of your monthly outgoings (things you spend money on).

• Next to each one, write down an action and/or alternative that will help you reduce the money going out of your account. 

Outgoings like subscriptions are a good place to start.

• Are you still watching TV shows on the streaming service you pay £7.99 for?

• Could you split this bill with family members or friends who are also subscribed to the streaming service? 

Total how much you could save in a month if you made the changes. Then, multiply that figure by 12 to find out how much you could save each year.

This should encourage you to develop the habit of reviewing your spending habits on a regular basis and make savings where possible.

Main activity

Create a savings plan to help you develop the habit of putting any spare money aside for future purchases or financial decisions, rather than spending it on impulse buys.

Be as creative as you like but make sure it is something that you can follow through with and apply in practice.

For example, you may decide to look at creating a savings pyramid with three sections: short, medium and long term. In each section you can add different steps to take depending on where you're at in your financial journey.

We've put some ideas below, but have a think about what else you may include at each point:

• Long term (5+ years): Look at the different ISAs available that can help you meet key financial milestones, such as saving for your first car.

• Medium term (1 to 5 years): Attend free, virtual webinars hosted by your bank that can advise on the best account for saving money.

• Short term (0 to 12 months): Open a savings bank account and put any spare money in at the end of each month.

A good action plan should have simple, achievable steps that you work through in order to meet your end goal. Remember to view it as a marathon, not a race.

Portfolio

Choose a monthly expense. For example, your monthly mobile phone bill.

• Do some research and find out what alternatives are available. Can you get a better contract by changing providers or switching to pay-as-you-go? 

A good place to start is a money comparison website or a free money savings advice website. A simple Google search should help return enough results to begin with, but make sure that you're using trusted websites and never share any personal information.

Write an argument for switching to the cheaper alternative using the information you've collected from your comparison research, and present this to the bill payer in your household. This will allow you to practice your negotiation and persuasion skills, with the added bonus of potentially saving money in the process.

PSHE lesson

Create a fictional scenario for the class. For example, they are the new owner of a mobile dog grooming business and are responsible for sorting finances.

• In pairs or groups, ask them to create a budget for what the business owner needs to think about and estimated costs.

For example, self-employed tax, national insurance, pension, the cost of running the van, dog grooming supplies, promoting the business, and so on.

• Have the students present their budgets to the class and facilitate discussion on what a realistic budget would be.

• Are there things that they've picked up that others may have missed?

• Do they know where they can find out information on tax for people that are self-employed?

These questions can act as jumping off points and encourage students to start talking about finances with others, as well as recognise gaps in their knowledge that they can then work on over time.