You should have a bank account by the age of 16. This helps when you get allowances and keeps your money safe. If you haven’t got a bank account, your worker can help you set one up and provide ID or proof of address.

A current account that you can pay into easily and withdraw money when you want is a good place to start.

16+ top tips on banks accounts
16-19 accounts are a good place to start for a first account.

Try to get an account that has no overdraft facility so you can only spend money you have and not get into debt

16+ Service can provide you a letter as one of your pieces of ID that the bank will accept, as long as it is printed on headed paper and has an original signature.

The Citizens Advice has some great advice about:
Opening a bank account

https://www.citizensadvice.org.uk/debt-and-money/banking/getting-a-bank-account/

Credit cards, pro and cons

https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/credit-cards/

Click on this link to find out more https://www.thebalance.com/parts-of-a-debit-or-credit-card-front-and-back-315489

A bank statement is an official summary of the money you have put and taken out of your account. Most people now access their statements online. You can receive a paper copy if you request it.

It’s really important to look at your bank statement to keep track of what you are spending and to make sure that you don’t go overdrawn and accidentally incur bank charges.

ATM is the abbreviation often used for the card machine or ‘hole in the wall’ where you can withdraw your cash. 

Click on the link below to watch a video on how to use an ATM machine https://www.youtube.com/watch?v=Jxp9SQyykR0

If you are living independently you are responsible for paying your bills for your rent and water, gas and electricity. (see sections below)

You will also need to ensure that you have a TV licence. Don’t avoid getting one as you could be fined up to £1000. There are a number of ways to pay for a licence, click on this link for more information

https://www.tvlicensing.co.uk/pay-for-your-tv-licence/ways-to-pay

You are also responsible for paying council tax. As a care leaver you are exempt (you do not have to pay) council tax until you are 25 years old. It is worth considering how this will affect your budget when you reach 25.

https://www.cornwall.gov.uk/council-tax/get-money-off-your-council-tax/money-off-council-tax-for-care-leavers/

You will also have to pay for internet access and for your phone. Take some time to find out the best deals that are available.

What is a utility bill?

Utilities are the basic services you need to keep your home comfortable. The most common are for electricity, gas and water. When you have your own place you are responsible for paying for all of your utilities.

There are three things to check your bills for:

1. That you’re being billed for and paying the right amount.

2. That you’re not building up any debt.

3. If there’s a cheaper way of paying (your bill will show this).

Electricity and gas bills can look very similar, and if you have the same supplier for both, you may only get one. Not all bills look the same, but most include rates, meter reading totals, and graphs to show how much electricity or gas you have used. These graphs can be helpful when trying to understand increases or decreases in your bill. If you ever have questions regarding your bill, don’t hesitate to call your provider.

This is a useful video that explains how to read your gas or electricity bill

https://www.youtube.com/watch?v=dCOr50j-wjE

This is a useful link that explains how to understand utility bills from different providers

https://www.moneysavingexpert.com/utilities/understanding-energy-bills/

Always check to make sure you are on the best deal on your energy bills. The Citizens Advice Bureau have a useful tool on their website to help you compare prices from different energy suppliers

https://energycompare.citizensadvice.org.uk/

The Community Energy Trust have lots of advice on how to reduce your energy bills

https://www.cep.org.uk/information/reduce-your-energy-bills/

Your supplier needs regular readings from your gas or electricity meter to work out your bills. If you don’t send them readings, they’ll estimate how much gas and electricity you have used. This means your bill might be too high or low.

Call your supplier to give them the readings – or check if you can submit one on their website or app.

What kind of meter do I have?

Traditional (non-smart) meters

Everybody had meters like this until a few years ago when smart meters began being installed.

If your meter hasn’t been changed since before 2017, and either has dials or an analogue meter display with 4-6 black and white (and some red) numbers, you have a traditional meter.

Click on this link to take you to a webpage that explains how to read different types of meter

https://octopus.energy/blog/how-to-read-your-meter/#analoguemeter

Smart meters

There are two different kinds of smart meters – SMETS1, the earlier version, and SMETS2, the latest version. To be 100% sure which kind of meter you have, the best way to find out exactly which type (and brand) of smart meter you have is to contact the energy supplier that installed it.

The webpage for your energy supplier will explain how to read your Smart meter or click this link for a general guide on Smart meters

https://www.citizensadvice.org.uk/consumer/energy/energy-supply/your-energy-meter/how-to-read-your-smart-electricity-meter/

A very poor credit history can affect your ability to get things like mobile phone contracts or insurance.

A credit score is the score that a credit provider will use to help them decide who to lend money to. Your credit rating might also influence the rate of interest you will pay and the amount you can borrow. In the UK, companies called ‘credit reference agencies’ (CRAs) compile information on how well you manage credit and make your payments.

How to get a credit rating

If your name isn’t on the electoral register, add it as soon as you can. Being registered to vote in the UK means lenders can check that you live where you say you do, so it’s important to register. You can register to vote using the link below

https://www.electoralcommission.org.uk/i-am-a/voter

Opening and managing a current account responsibly will help your credit rating.

Set up some regular Direct Debit payments to pay bills such as your gas and electricity or your home insurance or mobile phone. Always make sure you have enough money in your bank account to pay any bills being paid by Direct Debit or standing order.

It’s important to make sure you pay all your bills on time, as a missed or late payment will count against you.

Adding evidence of keeping up with rent payments helps people build a credit history 

If you’re thinking of having a joint credit agreement (such as a loan or mortgage) with someone else, their credit rating might affect yours. For example, if they fail to make repayments on credit cards or other loans, it might make your credit rating worse. That’s why it’s important to end financial links with friends or ex-partners with whom you have taken out loans by closing any joint accounts you still have and then contacting the credit reference agency to ask for a ‘notice of disassociation’ to stop your credit files from being linked.

Regularly checking your credit report can help you see which direction your score is going and identify any incorrect information. By law, all CRAs have to provide you with a copy of your credit report for free.

There is more information available here

https://www.moneyhelper.org.uk/en/everyday-money/credit-and-purchases/how-to-improve-your-credit-score

Make a budget!!

Think about the bills you need to pay. Bills you might need to budget for:

• gas / electric – you might get a combined bill or 2 separate bills, depending on how it’s set up.
• council tax 
• TV licence 
• internet / phone / TV – most of the time you’ll have a ‘package’ with all 3 together in one bill.
• home contents insurance
• water 
• rent.

Tips on supermarket shopping that can save you money

https://www.moneysavingexpert.com/shopping/cheap-supermarket-shopping/#

Plan and cook your own meals – save takeaways for a treat. Here are 20 tips to eat well for less

https://www.nhs.uk/live-well/eat-well/20-tips-to-eat-well-for-less/#

If you own a mobile phone on a contract, don’t go for an automatic upgrade, keep your phone and go to a sim only tariff, it can reduce your bill by up to two thirds

Reconditioned phones are good value for money and can save you hundreds of pounds

Energy-saving lightbulbs might look a bit ugly and be more expensive than traditional bulbs, but they should still benefit you in the long-term. Some sources claim they give up to 25,000 hours of light compared to 1,000 for a traditional bulb.

Think before you buy! Get into the habit of saving for things you want rather than buying them on credit

Here is a link to an online budget planner from the Princes Trust

https://www.princes-trust.org.uk/help-for-young-people/tools-resources/money-management/budget-planner

At this time, many people are facing problems with the cost of living, with energy bills, fuel costs,
and basic food costs rising. This resource sheet, created by Inclusion Cornwall, has a collection of resources, including many
signposting to other help.

https://inclusioncornwall.co.uk/wp-content/uploads/2022/10/cost-of-living-resource-sheet-1.pdf

If you find yourself in debt, get help straight away – it’ll just get worse if you ignore it.

Your personal advisor can help you make sense of the debt and give you advice on where to go for help.

Here is a useful link for advice

https://www.moneyhelper.org.uk/en/money-troubles/dealing-with-debt