Managing your cash...

Many people get their first job when leaving school and have their own money for the first time. You maybe tempted to blow your entire pay check on frivolous expenditures and could develop bad financial habits. It's important for you develop good financial habits because habits formed during your teenage years often carry over into adult life.

Put Money into Savings

• Develop the habit of regularly putting money into a savings account. In fact, you should deposit money into a savings account as soon as you get paid. You should save money for both short-term and long-term goals. For example, save money for a car, which is a relatively short-term goal, and also opt to put money into a retirement account even though you are many years away from retirement.

Avoid Debt

• Debt may seem unavoidable, but while it is true that few people are able to buy a home without going into debt, with proper advanced planning, most other expenditures, including big-ticket items such as cars, can be purchased with cash
• It's especially important to avoid credit card debt since finance charges on credit cards are especially high. When using a credit card it is very easy to spend more than you realize and before a teen knows it, minimum payments may be unaffordable
• If you use a credit card you should be sure to pay the balance in full. If you cannot do so, it may be a good idea to destroy all credit cards until you are financially supported enough to manage your money well enough to pay the entire balance each month.

Spend a little less than you earn

• Work out how much money you have coming in and how much you can afford to spend by keeping a record, and then stick to it.

Pay your bills on time

• If you get a poor credit rating now, borrowing money later will be much harder. You can check your credit rating on the Experian and Equifax websites.

Act quickly

• As soon as you know you have a problem paying your debts, contact the people you owe money to. If you're honest with them, they may agree to extend your contract or agree to a different payment scheme.

Don't be afraid to ask

• You can get free debt advice from the Citizens Advice Bureau or the Consumer Credit Counselling Service.

Check your charges

• With a credit or store card you may end up paying back more than you borrowed because of the interest they charge. Look at the APR (Annual Percentage Rate) to see how much the interest rate is. If you have 15% APR on a loan of £100 over one year, you will have to pay back a total of £115. Always look for the best deal around.

Managing your money well just takes a little bit of planning.

• How to claim income tax back on your tools and equipement - coming soon...
• Download the really useful AZ Budget Planner - Click here