How can I make sure I dont run into Debt.?

Question

I live with my dad who works with DLR and earns about £22.5 K a year, mum who works in a care home and is a trainee nurse and earns about £12K a year. And I am fourteen and cant get a job due to my age and I am a girl by the way. I have a mild autistic brother who is twelve and a ten year old brother. We live in three bedroomed home in London. My parents salary altogether comes to about £30-31K. That isnt alot. What things can I do to make sure that we live comfortably, no debt etc. My brothers dont get pocket money but I get £10 a month for my phone credit (Pay as you go) but from July I may get a contract which is £15 or £20 a month and I get £10 a week for school dinners/clothes etc. School Dinners is £1.55 per day but I sometimes buy cheaper food in supermarkets. So what can I do? Oh and I think our house was £200K. We have a mortgage.

Answer 1

The answer is very simple.  Do not spend more than you receive.

This may seem very hard to start with, but is a fact of life.

To help with this you have to see what is most important to you.  Not what you might find the most enjoyable, what is most important.

Also:

1. You do not have money to spend as you wish.

Your parents give you a £10 a month allowance for mobile phone credit.  You should use this for your mobile phone.

They also give you £10 a week for school meals.  You should spend this on school meals, not on cheaper food.  The reason?  The most important thing for you at fourteen is your education, your health, and your preparation for the future.  You need to eat as healthily as possible so that you have the energy and health you need for all the demands on you at school in classes, and in exercise, and time with your friends, and  at home as well.

2. If you wish to see a change in the agreement between your parents and yourself about the money that they give you and how you spend it, you need to sit down with them and talk to them about it.  Think carefully about what you want before you talk to them.  This will help you to be clear about what you ask for.

From what you say about your family circumstances you are very aware how life is not easy for you as a family.  I do hope very much that your love for each other will be the main thing that will guide you as you face the increasing choices that you will be making as you go forward in your life.

Later on in life, you may well face the need to borrow money, say for university or college , buying a house etc.

If you do, the same rule applies: do not spend more than you receive.  When you borrow, what this means is, that you have to see clearly that you have the income for the repayment of the debt.  Usually so much a month.  Student loans have very easy terms of repayment to help you in this.

Credit cards are the worst way to borrow money because the interest you pay is so very high.

Never forget, money is not the most important thing in life.

God Bless

Answer 2

Why can't you work? There are part time jobs that you could do at your age. Paper round? Babysitting? You could also start your own business, selling old toys etc on ebay. The short answer is that it is your parents job not yours but you could make things easier. Your parents should pay for your dinner but you could earn the money to pay for your phone credit yourself, a mobile phone is a luxury and you could earn £10 a month quite easily (1 nights babysitting should do it)

Speak to your parents if you are concerned but remember it is their job to keep a roof over your heads and you shouldnt have to stress out at your age. Try to go out and enjoy yourself (there are lots of free things to do) and forget about your worries for a while

Answer 3

First do not go onto a contract for you phone. Change to a pay as you go that is cheaper. I am on Tesco and it is 10p per minute per call and 5p for a text. Also a mobile phone is no way an essential in life so only use it for essential calls. Get you dad to change over to Talktalk broadband and you get everything for £21. They have a special deal on at the moment giving 3 months a lower rate. You get for the £21 all calls, broadband and line rental. I have been with TT for 2 years now and it is great. The value of the house is not relevant at this time as long as your parents can pay the mortgage.

Answer 4

You seem very responsible for your age. which makes a great change...having said that, your family don't seem that badly off....you are only 14 so don't worry about such things, there will be plenty of time in the future to worry about finance...so get on with being young...most parents give in to kids wanting new play-stations, clothes etc....so try not to ask for things you don't really want, or try and sell second hand stuff before you go to buy something new...this is all good training for later in life, and makes you appreciate the value of money.....good on you.

Answer 5

Don't spend more than you earn, that's the only way that I know

Answer 6

i can,t see why it should be upto you at fourteen to look after the family finances. your mum sounds like she has the intelligence to deal with the family income being a trainee nurse (her income should double when she,s a qualified nurse) in the meantime just live by your means,do not spend what you don,t have -NO CREDIT. With a couple of thousand a year in child benefit and tax credits the household income for the five of you is probably over 35k a year ,try working and living on under 15k a year as the 6 of us in our family do !

Answer 7

Always keep a pee in your pocket.

Answer 8

The secret is to only spend what you earn.

The only exception might be buying property, because otherwise you would have to pay rent anyway. Even then make sure that your monthly repayments don't exceed your ability to pay.

And don't worry about this stuff until you are a few years older and are legally allowed to borrow money!