Managing my money for young adults
Managing my money for young adults

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Managing my money for young adults

Session 3: Being a savvy shopper and building a budget

Introduction

Welcome to Session 3.

In the following video Bobby Seagull introduces the main themes of the session.

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Transcript

BOBBY SEAGULL
So, what do you think are essentials and non-essentials when it comes to spending? The distinction isn't always clear cut so let's add a third category of spending called desirables, things like gym membership or a night out with friends every week, which aren't truly essential, but they are things you'd be unhappy to do without.
This session looks at how retailers try to influence your spending decisions. And you'll meet a new term called heuristics.
These are preconceived ideas we have in our minds, or perhaps in-built prejudices that affect where we shop and what we buy.
And the potential risks of shopping online. Would you know how to spot a dodgy website? Find out how to avoid them and stay safe.
You'll also start to build a simple budget so you can manage your personal finances effectively, whilst living full time in the family home. Budgeting is an essential part of managing your money. And you'll find it is quite easy to do, but to make it even easier, we have an online app to help you.
Enjoy Session 3.
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So far you’ve looked at the income you can get from employment. You’ve also looked at the impact of tax and National Insurance contributions – two items you’ll become very familiar with when you move into a full-time job.

In this session the focus turns first to spending and the factors that determine our spending habits.

You then start to build a simple budget. This is going to skill you up to manage your personal finances effectively in the period before you leave home.

By the end of this session, you should be able to:

  • understand the difference between essential and non-essential spending
  • make good decisions about phone contracts – including whether to by phone insurance
  • appreciate the behavioural biases that affect the way we spend money
  • shop online wisely and without explosing yourself to scams
  • understand, draw up and use a simple budget.
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