Top 9 vital money lessons you should have been taught in school

1. How to make money last

   If you’re having trouble making ends meet, it boils down to simply earning more or spending less. However tempting it is to embark on a mass shopping spree whenever our student loans or wages come through, paying the rent and setting aside cash for bills must come first.
   When shopping, beware of the raw emotion and thrill tied up in buying stuff. Avoid impulse purchases, learn the supermarket’s tricks, and take time to consider exciting big-ticket purchases, such as a laptop or car.
   It’s also crucial to keep on top of debt – such as that pesky overdraft and credit card – as going beyond your limit or delaying payment now means nasty charges (and a knock to your credit rating) later!
   That said, there is one exception to the rule. You may be eager to clear away your student loan as soon as you’re in work, but it’s very low interest borrowing, some of which may even be written off (say what?!): don’t rush to pay it off ahead of other debts.
   

   What’s the minimum you need to live on?

   There’s no clear-cut answer to this. The cash you need to live in London will be vastly different to what’s required for a comfortable lifestyle in Leeds.
   So the first step is seeing whether you’re in the black, or in the dreaded red – much easier if you follow our budgeting steps and download our nifty spreadsheet. You can also see what the average student spends here.
   The aim of the game is avoiding nasty surprises by planning ahead. Got Mum’s milestone birthday coming up? Pop it in your spreadsheet, set a reminder on your phone, and start saving for her present now. Building up a contingency fund is also a bonus for unexpected costs, such as last-minute group holidays or fixing another broken iPhone screen.

2. The art of haggling

   There’s no shame in haggling to get the best deal when you’re buying something. But unless you’ve got years of experience as a market trader, you probably weren’t taught how to barter like Del Boy in school. Thankfully, we’ve got a useful guide on haggling like a pro.
   While you should always ask for a student discount, the opportunities for a bit of bargaining are endless. For example, head to a farmers’ market as the day comes to a close and take home some gourmet stock for less than Tesco Basics.
   One of the best times to get haggling is when your mobile phone contract is about a month or two away from expiring. Just ring up, ask for the cancellation department, pretend you want to leave them and turn on the charm. Free texts, extra data, a better phone and cheaper plans are all achievable with determination and patience. Arming yourself with research on better deals from their rivals is a sure-fire way to guarantee results.

3. The real dangers of debt

   Credit: Peter Shanks – Flickr.com
   Some debt is unavoidable and even necessary. Mortgages are a long-term way to spread the cost of living or investing in a property over time. The same applies for tuition fees and maintenance loans – going to university would be impossible for many students without them.
   That said, the dangers of some costlier types of borrowing are often skipped in school lessons: credit card debt can spiral out of control if you don’t keep on top of repayments, while predatory payday loans come with astronomically high interest rates and eye-watering fees.
   Managing personal debt is probably the most vital lesson that most Britons should have learned, if these recent stats are anything to go by:
   The Citizens Advice Bureau, the National Debtlineand StepChange are all great places to go if you need free and confidential advice on money problems from trained councillors.

4. Keep an eye on your credit score

   When you apply for most financial products, such as a credit card or overdraft, lenders will run a credit check on you to calculate their risk. They will be looking at your application and borrowing history in reports managed by a small number of credit referencing agencies.
   A poor credit score can affect your chances of getting a mobile phone contract, renting a house, or even getting a mortgage further down the line. These black marks remain on your report for six years.
   As such, you need to think ahead – and tread carefully. Think twice before making applications, and always make repayments on time. You are able to check your credit reports, and should do so regularly to avoid inaccuracies and fraud, and of course be aware of your score to figure out the likelihood of being accepted by banks or lenders before you apply.
   The three main agencies are Callcredit, Experian and Equifax. It’s easy to check your credit rating on a free trial, usually for 14-30 days.

5. Interest rates for saving and borrowing

   Credit: 401kcalculator.org
   Interest rates are set by the Bank of England and banks, with the former setting the ‘base rate’ and the later adding more depending on the service offered and how generous they’re feeling.
   Generally speaking, interest rates have recently been at an all-time low since March 2009. Increasing the base rate would be harder on borrowers (not the tiny people kind), but great for savers.
   A goody-two-shoes with £20,000 of savings might earn 3% interest on top of their cash every year, while a shopaholic maxed-out on their credit card with a £3,000 limit could be paying 20% interest on the cash they’ve borrowed.
   Some credit cards, overdrafts and mortgages often advertise low interest rates, but there’s no guarantee you’ll get these deals. That’s because the best rates are usually reserved for people with the highest credit scores.

6. How credit cards can be good for you

   Credit: pixabay.com
   There are plenty of pitfalls to sidestep when owning a credit card – not least a debt spiral – so you should never have one if you know you cannot afford the repayments. But, when used in the right way, they can be quite beneficial.
   Each credit card offers different features and terms, but generally they can be helpful for cash flow and for making large purchases you know you can pay off at the end of the month. If you’ve got the self-discipline to settle in full (not just the minimum payment) when the bill arrives, you typically won’t pay any interest on the purchases made. You’ll also build up a good reputation with credit referencing agencies, and generally enjoy greater financial freedom.
   There are also plenty of perks for credit card customers out there, such as: Airmiles to put towards a holiday, cheap foreign exchange, cashback and fraud protection. Just don’t fall for these without considering the cost of using the credit card or else you could quickly find yourself paying over-the-odds for the benefits.
   Some people – known as ‘credit card tarts’ (not as much of an insult as you might first think!) – regularly switch between banks and credit cards to take advantage of the perks and freebies on offer and to extend the 0% interest period on existing balances.
   Our guide to student credit cards goes into more detail to help you make an informed decision and avoid getting into bad debt.

7. Shop around for the best financial products

   Making the right choices with everything from car insurance to energy bills, mortgages to pensions, and savings and investments, matters. If you don’t spend a little bit of time doing your research it could cost you serious dough, affecting your financial well-being in later life.
   For example, do you know how long your arranged 0% student overdraft is for, and how soon after graduation you’d have to start paying it back? Are you aware what the fees and interest rates tied to your unarranged overdraft are? Do you know when your savings account will drop to a measly 0.10% interest?
   Remember you should switch whenever you can to get the best and latest offers. As you’re probably (more than) aware, there are lots of price comparison websites to help – comparethemarket.com and gocompare.com among them.
   So the lesson here is always make sure you’re on the ball to avoid hefty charges and missed opportunities to fatten your wallet.

8. Tricks used by the supermarkets

   If your only experience of supermarkets so far is throwing an insanely large pack of Skittles into your mum’s trolley, you could be ill-equipped for smart student shopping – with overbuying and wasting food being the most common supermarket sins.
   Multibuy offers can be mostly to blame here: two 500g bags of rice could be on offer for £2, while the 1kg bag on the shelf below costs just £1.50. You might also be tempted to ‘buy one get one free’ on something you wouldn’t usually buy, and end up throwing the extra food away because you bought too much.
   We reveal 9 of the dirtiest supermarket tricks. Every penny saved is a victory for your wallet!

9. Why checking your statements matters

   Credit: Jason Rogers – Flickr.com
   Get into the habit of checking your bank statements if you want to avoid unexpected charges, wasting money or being fleeced. This includes current and savings accounts, and (most importantly) credit cards. With most banks and building societies now operating online, keeping an eye on your money is as easy as surfing their site or tapping an app.
   Regular check-ins are vital to keep tabs on any payments you’re expected to make (and penalties for missing them), any interest you earn, and for weeding out direct debits or subscriptions you can ditch (not watched Netflix since Breaking Bad?). And if you spot any charges for things you don’t remember buying yourself, get on to the bank pronto.
   Think of it as a health check for your banking products: if they’re not helping you manage (and grow) your money shop around for better deals.
   Keeping an eye on statements also shows you month-on-month whether you’re balancing your books or going for broke. If you’re nudging the red more often than you’d like, this is where you can see just how much you’re blowing on Candy Crush boosters and take steps to rein it in.
   
   more  http://www.savethestudent.org/money/15-money-lessons.html