Managing your finances

Managing your finances is important to help you use your money in the way you want and do the things you enjoy. As you turn 16, 17, 18 or 19, you become entitled to benefits and support in your own right. Your entitlement may depend on whether you are still in education, job seeking or claiming benefits.

When you start to earn money in a job, or receive benefits, you will need to find a way to look after it safely. This is called banking.

Some things you will have to spend your money on such as food and accommodation. Other things you may choose to spend your money on for example, your hobbies and activities. You need to know how much money you have to spend it wisely.

You may want to do this by yourself, or you may want someone to help you. There are several options from advice and third-party mandates to appointees and power of attorney.

As you move towards adult life your family’s finances will change. If you are disabled, the situation can be complex because of the different benefits and tax credits which may be involved. Your parent carers may also want to change their work patterns as their caring responsibilities change.

Your family probably needs to do a ‘better-off’ calculation whenever you need to move on a stage – to further or higher education, job seeking or claiming their own benefits as well as when you reach a milestone birthday of 16, 17, 18 or 19. This means thinking about what the family would get if you remained dependent upon your parent carers. And thinking about what each of you would get if you became an independent adult responsible for your own finances. Comparing the two will help you see which one you and your family will have more money with.

important

Benefits and allowances paid to the young person belong to the young person, not their family.

Last reviewed: February 6, 2024 by Daniel

Next review due: August 6, 2024

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