Citizens Advice financial capability

Transcription

1 BDB1 Which are essential or non-essential? Step 1 - Next to the words below, please mark E if you feel that the word is an essential priority, and N if you feel it s not essential to pay it. Step 2 - Of those items you marked essential (E), choose the ones you think are the most important. Rent Service charge Loans and late fees Credit and store cards Council tax Electricity and gas Mobile phone Food Petrol / diesel Cigarettes / tobacco Snacks and treats Laundry costs Going to the pub TV licence CDs / DVDs / streaming subscriptions Magazines/ books Taking part in sports Trains and buses School fees Child maintenance Clothes Toiletries Savings Insurance Water Birthdays / Christmas Broadband Online memberships and subscriptions

2 Loyalty card top tips Use them every time you shop! Factsheet Only sign up to loyalty schemes at stores you use regularly, or spend significant amounts with. Check in store and online for points promotions and additional offers. Most (but not all) loyalty cards will give you start up points, for example a hundred points are added to the card when it is first issued. Ask for loyalty card scheme Terms & Conditions. Always check if there is a time limit to redeem your points. Always check how and where you can spend the points. Check if there is a minimum spend to get points. Are there any additional perks, for example free tea and coffee in store, or that can be redeemed at a coffee shop? Always check how the company will hold your data and if they will have the authority to sell it to a third party when you sign up for the scheme. If you know you're never going to use any rewards you get from using a loyalty card, don't sign up.

3 Step by step tips to budgeting Make a list of everything you spend money on in an average month. That includes the normal big bills, but also things like food and travel. Factsheet If you have the time, it always helps to keep a spending diary for a few weeks before you budget, just so you can see exactly how much you really spend on things like food, drink and travel. It s really easy to underestimate them! Make sure amounts are realistic. There s no better way to do this than to look at your bills for the last few months. Remember your heating bill is normally more in the winter months than the summer! Decide if you want to do things weekly or monthly. Once you ve decided, then convert everything to that and don t mix them up! Make a rough copy first, so you can make mistakes. Make your first draft budget; it should list all the money going out and all the money coming in. Include an amount for emergencies and things like Christmas and birthdays. Once you ve done your budget, it s worth adjusting the figures to see where you can save. For example, if you find you spend 10 a week more than you earn, you might need to look at some of your outgoings to make that balance. It s a good tip to make sure you have a small surplus in the budget, even if it s only 20. This covers unexpected expenses, which always seem to crop up! It is worth re-doing a budget when things change a job, moving house, leaving or moving in with a partner or taking out a loan.

4 How do I convert between weeks, months and years? BDB5 Converting weeks into months? Times by 52 Divide by 12 Converting month into years? Times by 12 Converting years into months? Divide by 12 Converting months into weeks? Times by 12 Divide by 52 Converting years into weeks? Divide by 52 Converting weeks into years? Times by 52

5 BDB6 Weekly spending diary Outgoings Monday Tuesday Wednesday Thursday Friday Saturday Sunday Total

6 BDB7 What else will help? As well as being online, what else will make the change in benefits smoother for me? Having cheaper bills Understanding how to budget Knowing where to get the cheapest gas and electricity Using my bank account to set up automated payments Having some knowledge of things like payslips Tips to save money on everyday things Tips to make more money from everyday things