A lot of families in the UK are feeling the pinch because the cost of living has gone through the roof more dramatically in a period of 40 years. Amid the soaring prices of electricity, fuel and gas, many families are forced to skip their meals. While the government has their own reasons to justify the heightened prices, you will have to find a way out to stay afloat. Many are so badly off that they have fallen into very bad credit loans with no guarantor from a direct lender.
Seeing the present scenario, experts suggest that you emphasise saving more than you ever did. The impact of sky-high prices is dreading for teenagers because their part-time jobs may not be sufficient to meet some of their living expenses. Life generally means binging on anything every now and then and acting like a couch potato in front of the TV.
Although many youngsters are oblivious to the cost crisis, many of them are being taught some financial lessons at their schools, and admiringly, they are using those lessons to teach their parents about budgeting and not being a burden on their finances for all of their expenses into the bargain.
What gaps do schools are trying to fill?
The ultimate purpose of providing financial lessons is to prevent students from falling into high debt when they start managing their money in the real world. The lessons will help them understand what is going on in the real world and how they are to manage when they start making their own money.
“With the help of financial lessons, now students are well-versed with budgeting and have taken on part-time jobs to pay for their expenses”, says Nicola, a finance and maths teacher at Ysgol Eirias who had worked in banking for almost 20 years. Students are being encouraged to implement learning from such lessons to deal with the cost of living at home, and they are doing so. In fact, school administrations are getting positive feedback.
“There is a big gap in financial literacy inside and outside the school and it must be filled, says Nicola, and if it could be done by teaching students about money management in real life, that is great.”
What tips do Teenagers have that they are using to save most of theirs and their parents’ money?
As a teenager, you may not have a full-time job. Side gigs could cover a little bit of your monthly expenses, but what about others? Of course, you will have to take care of your budget so judiciously. Here are some of the tips that can help you be at the helm.
1. Think of your own finances
You have a side gig which means you do not have too much money. As a teenager, you have to try your best not to be a burden on the finances of your parents. You do not have to just think about your finances but about the finances of your parents as well. Do not expect to have them covered by your parents. Yes, it is quite obvious that you would be hinging on them for some of your expenses but try to use your money for most of your expenses. But again, it should be smartly spending.
For instance, running a car is astronomical, so you should walk down to whittle down the cost. Likewise, if your expenses include hair extensions, and buying apparel and footwear, try to pay for them out of your own pocket. Some parents have reported that amid the soaring cost of living, they are to cut back on snacks and luxury items for having breakfast of toast with jam spread on it.
Now they get food for meals and for nothing else. Diving into the true financial condition of parents will let you know what they have been going through, and this may be an encouragement for you to save money.
2. Get a job if not
Do not just sit in front of the TV all day though teenage life is that way. With high electricity bills, it is quite difficult for parents to put up with their children using computers, TV and other electronic devices all the time. Some parents have reported that they reprimand their children for their behaviour, but this does not go down very well.
Therefore, it is suggested that you find a part-job. You can find it at a store, including food outlets and earn some bucks that make you financially independent to some extent. And on the other hand, this is a good way to avoid being a couch potato. In addition to alleviating the pressure on parents’ budget, you will be more responsible about your money.
For instance, you will spend less and make better financial decisions, such as staying at home instead of going to university. This will certainly help save a lot of money. In fact, you will be able to help your parents with managing your finances.
3. Start saving for the future
The cost of living is expected to rise down the line, so it makes sense to start stowing away money for a rainy day. Keep your money for your essential expenses. Do not just fritter it away on anything you do not need or love following the trends.
What other people are doing cannot lead your financial life, so be vigilant. You never know. A financial emergency can crop up at any time, and at that time, you may need extra funding sources. If you need a direct lender loan, you will still need to be careful about repaying capacity. If you already have some savings, you will just need to fill the gap. It will be a much more manageable option.
You can prompt yourself to save money by establishing priorities. Have long-term planning in your mind, so you do not run out of cash when you need it in the future. Save as much as you can. For instance, you can cut back on the usage of a computer, heater or TV to save on electricity bills. Having braced yourself for the soaring cost of living will keep you putting in the effort.
4. Keep your money safe
Saving is vital, but at the same time, it is crucial to keep your money safe so you have access to it when you need it. Some super saving accounts can help earn some interest.
Using your parents’ knowledge, you can also invest money. You do not need to invest in volatile investments, but the money that you are saving for long-term purposes can be used to buy a fixed deposit.
The final word
According to a survey, food, gas, electricity, and fuel have been cited as taking a large chunk of people’s budgets. The cost of living will keep continuing to carry on, so teachers and parents need to help teenagers learn money management.
This will not just help them be in control of the money at the moment but also prepare them for taking important financial decisions when they actually start earning money. As a teenager, you should start following the tips mentioned above.