All the high street banks have current account options designed to meet the financial needs of young people. Here’s some advice to get you started.
Open a current account
If you’ve got money coming in, you’ll need somewhere to keep it. A current account lets you keep track of your money, and makes it easier to pay for things.
Most banks offer accounts for young people with different options, including:
- 24 hour access to your cash
- Paying for things by card
- A cheque book
- An overdraft
- Online banking
To open an account, you will need some official identification like a passport. The national Money Advice Service produce a leaflet called 'Proving your Identity' which you can download from their website. They also produce a free guide to Basic Bank Accounts.
Credit Cards
Once you’re 18 you might consider applying for a credit card. They are one way of paying for things over a longer period of time. Each month you will be sent a statement showing your credit card expenditure. You will have the option of paying off a portion of your bill and carrying over the rest to the following month. Try to pay off the full amount shown. If you don't the amount shown will continue to grow (particularly if you use your credit card a lot) and interest will be added to the outstanding amount - hence you end up paying more for your purchases in the long run.
Most companies will offer you deals on how much interest you have to pay on your purchases – so it helps to shop around.
If your credit card purchases get out of hand cut up your cards and seek help from a reputable debt advice service.