Home , News , What is Money? , Bank notes , Coins , Getting money , Where money goes , Looking after money , Financial records , Budgeting , Spending and Saving , Safety first! , Alternatives to cash , Credit to the Nation , Risk and Return Banking , Benefits , Budget , CONTACT US! ,
Spending and saving
The main purpose of having money is to spend it. We all like to spend money on the things that we believe will make our lives more enjoyable.
On a daily basis, you will probably see your money spent on chocolate, a can of drink, a paper or a magazine, a lunchtime snack, or having coffee with your friends. None of which costs a lot of money, but day after day, it all adds up.
On a weekly or monthly basis, you will probably spend your money on more extravagant items such as a new designer outfit, CD’s, computer games, a pair of shoes or trainers or the latest releases on DVD.
There are also those large one offs like a new stereo, a Walkman, a DVD player, the latest games console, a bike or skateboard. These kinds of items are probably the things that you would ask for as a Christmas or Birthday present, but sooner or later you will need to be paying for them yourself.
Out of all of these items, it’s probably the more expensive items that are more sought after. These items can cost £100+, and unless you plan ahead, you may find that all of your money is spent on the chocolate, magazines and coffee, before you even get a chance to start saving for the games consoles.
This is why it is important to have some kind of financial plan in place. This will give you a clear understanding of what you want to achieve with the money you are given. As we have already discovered, a simple budget will give you an overview of where your money comes from and where your money goes.
The main idea of your budget is to give you an over-view of where your money comes from and where your money goes. After this has been completed, you should work toward having a little money left over in order to start saving.
These savings could be used to buy those larger purposes such as the DVD player, or a stereo, but you should also give some consideration to the far distant future. What about University, or your first car? These things will cost you thousands of pounds.
When you leave home, do you want to buy a house of your own?
By having a good savings plan in place, you will be in a much better position to achieve your goals. Instead of living in a tent dressed in garbage, you could be in a mansion dressed in Gucci.
Disclaimer, Target Audience, Jurisdiction Last updated & checked: 30/03/2006