My money

Opening a basic bank account

Banks and building societies are legally required to check your identity before opening an account, so if you want to open a basic bank account you have to be able to provide proof of who you are and where you live, such as a current passport, a current driving licence, or a household bill. Staff at the bank or building society will be able to tell you the sort of proof they need.

If providing this kind of proof is difficult for you don’t worry, some banks/building societies will accept something else such as an original letter or statement from any responsible person who knows you, like a Connexions Personal Adviser, social worker, teacher, EMA training provider or hostel manager.

Just take this document into your local bank or building society, explain that you want to open a basic bank account and they will discuss with you what sorts of proof you can provide. If necessary the member of staff can refer your application to someone who can authorise accounts in exceptional circumstances.

Debit, cash and cheque guarantee cards

Not all cards work on a "purchase now pay later" basis - read on to find out how yours works before punching in the pin!

Card Basics

Different accounts offer different cards. As a rule, at 16 you can open a basic account that comes with a cash card, and then a current account at 18 that offers debit, cheque guarantee cards and combined cards. Each card comes with a unique, four digit PIN that allows you to use the card.

A Cash Card allows you to draw money from cash machines, although there is a limit to how much you can take out. The minimum age for this is 16.

A Debit Card allows you to pay for goods at the point of purchase providing there is money in your account. Generally you have to be 18 to be able to have one of these.

A Cheque Guarantee Card is used to back up any cheque you write.

A Combined Card is a cash, debit and cheque guarantee card rolled into one - available to account-holders aged 18 or over.

Student money

Everyone knows that it’s tough going to survive on student money. You need to make sure that you get all the financial help you're entitled to. If you are unsure what you can claim or are having financial problems, speak to the Connexions Personal Adviser or Student Welfare Services in school or college.

Staying on at school or college at 16 is free unless you go to a fee-paying school. But there are still a number of ways you may be able to get extra money.

You can apply for an Education Maintenance Allowance (EMA) of up to £30 a week depending on how much your parents earn. To find out how to apply, visit their website above or call the EMA helpline on 0808 1016219.

If your family doesn’t have much money coming in, you may also be able to get money through your Local Education Authority (LEA) from the Learner Support Fund (sometimes called the Access Fund). This can help with the cost of books, equipment, transport, fees & childcare.

If you are not eligible for EMA the Educational Grants Advisory Service may be able to give support.

For student finance advice from a money expert visit Money saving expert.

The students’ charity, UNIAID, has developed an online student finance learning tool, called ‘All About U’, to help 16-19 year olds prepare for the challenges of university life. ‘All About U’ gives users a virtual experience of one year at university.

Higher Education

September 2006 saw the introduction of top-up fees, and these fees mean you won't have to pay fees up front at the start of each university year. Instead, fees of up to £3070 a year are paid back after you graduate through loan repayments when you earn more than £15,000 a year. Students pay different costs depending on: where they live; if they live at home or at university accommodation; what university students choose to go to; household income; and personal circumstances.

More information about student finance.

Extra Funding Options

You may also want to consider alternative sources of funding, such as a hardship loan which you can apply to the Student Loans Company for. This could amount to anything up to £500. Many students also turn to part-time to work to fund their studies.

Student Bank Accounts

It's important to choose the right bank for you when going to university. If you know where you are going to study then look at which banks have branches there and see what services they offer. Find out the important bits such as how big the overdraft facility is likely to be and does it increase each year? Make sure that the bank has Internet Banking - it will make managing your money so much easier.

Student Costs Breakdown

The cost of basic student life varies from town to town and from college to college. There are always certain expenses for which you have to plan ahead for, such as rent, bill, food and other groceries, tuition fees, books and equipment, stationery and photocopying, going out, travel costs, clothes, phone and internet bills, insurance and interest & fines on bank accounts and in the library. It's just a question of finding that healthy balance for student spending. The priorities are paying bills and rent but that doesn't mean you can't splurge once in a while on a new top or a couple of CD's.

Benefits

The whole area of benefits for young people can be really complicated & confusing!

Turn2us is a useful site if you want to know what benefits you will be entitled to and how to calculate what you should get. It will ask a series of questions, keep a running log of your answers before doing a calculation.

Basically, most 16 and 17 year olds aren't entitled to many benefits. Young people are expected either to be supported by parents, or be in education, full time employment or some sort of training. However, depending on your circumstances you may be able to qualify for some benefits, so it's always best to check with a Connexions PA if you think you might be eligible. This is particularly relevant for 16/17 year olds who don’t live at home, have been in care or are on a training programme.

If you are 16 or 17 and visit your Job Centre someone will call you back within 4 hours to discuss your situation. All Job Centre advisers will be able to help you find out what you are entitled to and guide you through filling in a claim form. If you are 18 or 19 an adviser will contact you within 24 hours. The more information you can give an adviser about your situation and finanical circumstances, the easier it will be for them to judge what you're eligible for.

Once you reach 18, the normal rules for adults apply. If you are unemployed and available for work you can claim Jobseekers Allowance. If you’re not available for work because you are disabled, too sick to work or a single parent, you would receive Income Support. In order to claim either of these benefits, you must go to your local Jobcentre Plus office or you can ring their benefits helpline on 0845 602 6710. You can also speak to them about other benefits you might be entitled to.

Benefits and financial information

Jobseeker's Allowance

JSA is a benefit open to most people over the age of 18 who are unemployed but looking for work. You could also be eligible if you have a job and work less than 16 hours a week. If you are single you will get £46.85 a week. If you have children you will be eligible for more - £59.15 a week.

If you are 16 or 17, you will only be able to claim JSA in exceptional circumstances such as estrangement from your family leading to severe hardship. If this is the case, contact your local Job Centre. If you are single, you will get £35.65 a week.

Income Support

If you can't be available for full-time work and don't have enough money to live on, you may be able to get Income Support benefit. You are eligible if you are a lone parent, registered sick or disabled, if you are a student and sick or disabled, if you are a carer for someone who is sick or elderly and if you aren't working or work less than 16 hours a week. How much you get varies on your circumstances, and it is paid directly into your bank account.

Housing Benefit

Housing Benefit is for those who have a low income and are struggling to pay rent. It is paid by your local authority regardless of whether you are available for, or in, full time work. It may not cover the full amount of rent you are paying. If you are living in accommodation as a single person, the maximum Housing Benefit you can get is the 'Average Local Reference Rent' for a bedsit. This means the maximum you can get is enough to cover the average priced bedsit in your area. Often if your accommodation costs more, you have to make up the difference yourself. And it doesn't cover bills. It's paid directly into your bank account or direct to the landlord. Forms are available from your local authority Housing Department.

Council Tax Benefit

Council Tax Benefit is to help pay some or all of your Council Tax for those on a low income. The local council pays it and it doesn't matter if you get other benefits or if you already get a discount for living alone. To qualify you need to be on a fairly low income and have less than £16,000 in savings.

Full-time students don't usually have to pay Council Tax.

Young parents

You can get financial help with your childcare if you are in college, at school or taking part in a work-based learning programme from the Care to Learn scheme.

National Insurance and Tax

National Insurance

Paying National Insurance contributions and taxes is a nasty but inevitable fact of adult life.

You are given a unique National Insurance (NI) number when you're 16, sent to your home address on a plastic card. It’s important to keep it safe as you will need it when you start work or try to claim any kind of benefits. Most people who work have to pay National Insurance contributions and these are taken directly from your wages. The contributions you pay count towards some benefits and also your state pension.

If you don’t have a NI card or have lost yours, you can contact the NI Helpline on 0845 600 0643.

With effect from 17 July 2006 the initial point of contact for all customers with enquiries or wishing to apply for a NI number will be via this number.

The DirectGov website answers the following questions about National Insurance numbers:

• What is a National Insurance number?
• Where to apply for a National Insurance number
• When you can apply for a National Insurance number
• Evidence of identity interview
• Types of evidence and information

If you have lost or can't remember your NI number you may be able to find it on official paperwork you have at home such as a payslip or a P60 which is a statement of tax at the end of each financial year. However if you still can't find it contact your loal Job Centre and they'll tell you waht to do.

Income Tax

Your NI number never changes, even if you go abroad, marry or change your name.

You will also have to pay Income Tax once you earn over £5225 per year (2007/2008). The more you earn, the more tax you pay. The money raised through Income Tax helps pay for things like education, hospitals, social security, police and defence. Your employer will work out how much you have to pay and, like National Insurance, take it directly out of your wages.

You won't have to pay tax on student grants and loans, housing benefit or money you receive from your parents. If you earn less than £88 a week then you shouldn't be taxed, if you are a student you shouldn't be taxed if you work during the holidays.

Financial support for students with disabilities

There are special funds and allowances available for students with disabilities.

The main source of financial assistance is a Disabled Students' Allowance (DSA). The allowance is to subsidise disability-related costs whilst you study and is available to full and part-time students, as well as undergraduates and postgraduates.

Your may also qualify for contributions towards travel expenses.

Check out the DfES Student Support website for more advice on who is eligible and how to apply.

Childcare

If you are under 19 with childcare responsibilities, you can get help with your childcare costs through Care to Learn when you return to learning.

As long as you use a registered childcare provider, you could receive up to £160 per child per week (£175 if you live in London) to pay for childcare and travel costs. Care to Learn will pay the money directly to your childcare provider and course provider.

If you know what learning you want to do and have been provisionally accepted by your learning provider, you should complete a Care to Learn application form. You can download these from the website or get them from the learning provider. You can also get a form in the post by ringing the helpline on 0845 600 2809.

If you haven’t chosen your learning or need help finding a course or appropriate childcare, you can send in an Enquiry Registration form. These can be found at the back of the Care to Learn booklets, available at Connexions Centres. The Care to Learn team will then send you a letter with the name of someone who will be able to help you. This may be someone from Connexions or another person who works specifically with young parents. They will be able to give you help & advice and talk through any ideas you have for learning or childcare. You can also ring the helpline at any time if you have any problems or questions.

Once you have sent in your full Care to Learn application form, the team should let you know within 5 working days whether your application has been approved. Receiving money from Care to Learn will not affect your benefits or allowances and you do not have to be on benefits in order to apply.

To find approved, registered childcare in your area, visit the Hampshire Family Information Directory.

If you are under 18 and pregnant, or under 18 with a baby

Your local Sure Start Children's Centre can offer you help and support.

For advice and information on employment related issues - contact Working Families.

Healthy Start Vouchers allow for the purchase of milk, fresh fruit and vegetables or infant formula milk from registered shops (most supermarkets have signed up). Registered shops will display a red and green window sticker saying 'Healthy Start Vouchers Welcome Here'. NHS Clinics will not be able to accept them.

You would qualify for Healthy Start if you are pregnant and under 18 years old, you are pregnant and have a child under four years old AND you get Income Support, income based Jobseeker's Allowance or you get Child Tax Credit (not Working Tax Credit).

Healthy Start vouchers are worth £2.80 a week if you are pregnant, £5.60 a week for each baby aged under one and £2.80 for each child aged over one and under four.

All pregnant young women or young mums who are already in receipt of benefits will automatically be transferred over to the scheme. However, all new applicants will need to complete the application form (and professionals need to complete Part B of that form for/with them).

Debt

It’s very easy to get into debt when you have little money coming in. It might be that you’ve overspent on credit cards or borrowed money from friends or family and can't afford to pay it back. Or you may have a gambling, drink or drug problem which is putting you into debt. The important thing is to not let your debt spiral out of control.

• Make a positive decision to address your debt problems.
• Sit down and work out exactly how much you owe and who to.
• Prioritise which debts need to be paid off the quickest.
• If at all possible, talk to the people you owe money to.
• See where you could realistically make cutbacks in your spending in order to make repayments on your debts.
• Get advice from someone you trust or contact one of the organisations who deal specifically with debt.

National Debtline has loads of really useful advice & information, including budget planners, sample letters to creditors, factsheets and links to other free services. You can also ring their helpline on 0808 808 4000.

If gambling is a problem for you, check out Gamblers Anonymous or ring their helpline on 0207 384 3040.