- If you wouldn’t pay cash for it, don’t buy it on credit
- Always check the charges
- Shop around to find the cheapest way of borrowing money
Making investment choices was the second priority. Top tips, as voted for by young adults themselves, included:
- Start low risk, invest in cash Isas
- Don’t invest in the unknown
- Pay close attention to investment fees and charges
Pensions:
- Think about your pension as soon as you start working
- However small, save something for your retirement
- Maximise employer contributions
Budgeting:
- Divide spending into what you need and what you want
- Spend less than you earn
- Use the 50/30/20 rule; 50% on necessities, 30% of savings and 20% on luxuries
Large purchases
- If you can’t comfortably afford it, think again
- Plan before you spend – think about how you will pay for it
- Don’t compare yourself to others – buy what you can comfortably afford
Short term savings
- Save three months income for a rainy day
- Pay for things you need before paying for things you want
- Put away money each month for unexpected bills
