Money problems

Talking about money can be hard. You might feel embarrassed about asking for help, or worried about how someone will react.

If your family or carers are struggling with money, it might help to think about how they'd react if you brought money up or when the best time would be.

Talking about what's happening is an important way to get help. You could:

• ask for financial advice from an organisation like Citizen's Advice
• get help from food banks, or support for essential items
• speak to an adult you trust.

If you're not sure where to start, it can really help to talk to a Childline counsellor. They can help you talk about things safely, and think about the best thing to do next.

A budget is when you list all the money you have coming in, and the things you need to spend money on. Writing everything down can be a great way to help you see how much money you have, and find ways to spend less.

A budget can help you if you're managing your own money, or it can be something your parents or carers can do themselves. And there are tools online that can help.

Here's some simple steps to make a budget:

Step 1: Write down how much money you have coming in

This includes any regular money you get from family, work or as benefits.

Step 2: Make a list of all of the things you have to pay for each month

This could include phone bills, rent, debts, travel. Anything you have to pay for.

Add up the amount you spend on food as well. If you make a weekly shop, multiply that by 4. Or you could try keeping track of your spending for a week

Step 3: Work out how much 'disposable income' you have

Disposable income is the amount of money you have after all your essential bills have been paid. Add up all of the things you pay for in step 2, and then take that away from the figure you wrote down in step 1.

If the amount you're spending on essentials is more than the money you have coming in, it's important to get support. It can help to look closely at how much you're spending on food, and see whether you could save money by making cheaper meals at home, it's also a good idea to get financial advice from an organisation like Citizen's Advice .

Step 4: Plan what to do next month, or next week

If you have disposable income, plan how you'll spend it. It's important to put money aside each month for emergencies and to save if you can, and it can help to do this at the start of the week or month to make sure you don't spend it. If you want something expensive, you can also put money aside each month to save for it.

Write down how much you normally spend on going out, seeing friends, clothes, games or anything you buy that's not essential. Try setting yourself a limit on how much you're allowed to spend on each thing from now on, making sure that you don't spend more than your disposable income.

Taking out a loan can feel like a good short-term solution, but it's not always a good idea.

Payday loans

If you're 18 or over, payday loans can be tempting when you need some money quickly. But lots of payday loans have extremely high interest rates. This means you could end up paying back far more than you ever borrowed.

It's important to get financial advice before deciding to take out a loan by talking to an organisation like Citizens Advice.

Borrowing from friends or family

If you're able to, borrowing money from friends of family can help when you need it. Borrowing money from people you know can be difficult, and it's important to think about:

• what will happen if you can't pay them back
• whether they would expect anything from you in return
• if they can afford it.

It's important to talk about all of this before deciding whether or not to take money from someone. Borrowing money can sometimes change things between you and the person you know.

If you're in a relationship, it can make you feel like you have less power. It's never okay for someone to pressure you to do things in a relationship because of money.

Remember, even if you owe someone money it's against the law for them to threaten to hurt you if you can't pay them back.

There are lots of ways to save money:

• Think before you buy
  Ask yourself if you need something, or just want it. Make yourself wait a day before deciding to buy anything.
• Shop around
  Try waiting for a sale, or looking for a cheaper price for something you want. Price comparison sites to find out the best price.
• Use loyalty cards
  Loyalty cards will help you to collect points, and sometimes give you discounts. Remember that these are very different to store cards, which you should avoid as they can have high interest rates.
• Save on energy bills
  Turn off lights and the heat when you don't need them, and turn off the TV at the mains when you go to bed.
• Get a 16-25 railcard
  If you're over 16 and travel a lot, a 16-25 Railcard can save you money every time you buy a train ticket. You might hear some people call these by their old name – a Young Person's Rail Card.
• Sell your old stuff
  Old phones and devices that you don't use any more could be worth something. You could also trade in old games towards the cost of a new one.
• Have days off from spending
  Try to have days where you're not allowed to spend money at all.
• Make a shopping list
  If you're going out or food shopping, make a list of what you need to help you avoid buying things you don't. And avoid shopping when you're hungry, as it can make you buy more.
• Plan cheap things with your friends
  Go to places that are free, watch a film at home or play a game together. There are lots of ways to spend time with people that doesn't cost money.