Thimbl. Press Release (March)
Money Management for Teenagers
Data has revealed that 82% of young people want to learn more about money and finance at school, while 61% state that they don’t recall ever having received a financial education.
Just 2 out of 5 young people are considered to be ‘financially literate,’ with 70% admitting to feeling anxious about money since the onset of the cost-of-living crisis.
Alex Kosuth-Phillips, a personal finance expert at thimbl.com, shares advice on finances and money management for teenagers.
1. Can I get a job if I am under 18 years old?
“You are allowed to get a part-time job from the age of 13. There are some exceptions within certain industries, including television, modelling, and theatre, although you will need to have a valid performance licence in place,” Alex explains. “You can only begin full-time work - 40 hours per week or more - once you have reached the minimum school leaver age. It’s important to note that there are various restrictions in place around child employment and how many hours you can legally work, which you should carefully revise before starting work to ensure that you’re being treated fairly.”
“Popular jobs for teenagers include retail work, and roles within the food and beverage industry, such as waiting on tables and pot washing. Earning your own money is great, but remember to prioritise your health first and foremost. If your studies and wellbeing are suffering as a result of your workload, it may be an idea to take a step back.”
2. What is the National Minimum Wage for somebody under the age of 18?
“As of the 1st April 2024, the National Minimum Wage for those either below the age of 18 or partaking in an apprenticeship is £6.40 per hour. The National Minimum Wage for anybody aged between 18 and 20 is £8.60 per hour.”
3. When can I get a debit card?
“The majority of high street banks state that to apply for a debit card, you must be between 11 and 17 years old. Usually, a parent or legal guardian will need to set up the account on your behalf. It’s likely that you will need to physically go into the branch to register your account. Both you and your parent or guardian may be asked to provide documents such as proof of your identity and address. Sometimes, your parent or guardian will be required to co-own the account until you reach a certain age.”
4. What is the minimum age that I can apply for a loan or credit card?
“In the UK, you cannot apply for a loan or credit card until you are at least 18 years of age. For some lenders and providers, the minimum age is 21.
If you’ve never borrowed credit or paid bills before, you may have what is known as a ‘thin’ credit file. This is when you have no credit history to show. Because lenders have no evidence of how you have managed credit in the past, they may see you as a risk, which could reduce your chances of being approved.”
Alex adds, “Fortunately, there are a number of ways that you can build up your credit profile, including registering to vote, checking the personal information on your credit report is correct and up-to-date, and paying any bills that you are responsible for on time. This includes your phone bill.”
5. What’s debt, and how can I avoid it?
“Talking about debt is a good follow-on from our previous point about borrowing credit.
Debt is when you owe money, either to another person, or more commonly, to a company or organisation. This may be the bank, or a credit lender. Debt is money that must be repaid within a certain, pre-agreed timeframe. This is called the ‘term.’ Borrowing money comes at a cost, which is known as interest. Interest builds up over the term of the borrowing, and is usually included in your monthly repayment instalments.
It’s really important not to let debt spiral. This can happen when you owe money to multiple organisations at the same time, and cannot keep on top of your repayments.”
“Debt can be a scary subject, but it’s worth bearing in mind that not all debt is bad. Managing borrowed money effectively and paying it off in full within your chosen term may help to boost your credit score.
On the other hand, your credit score is more than likely to suffer if you make late repayments, or fail to make them altogether.”
6. How can I budget as a teenager?
“The word ‘budgeting’ might sound really daunting, and many of us often wrongly associate it with cutting back on the things we enjoy. This is not the case. Budgeting is a simply a thrifty way to manage your money, make the most out of every penny, and reduce the risk of falling into debt,” Alex says. “Start by calculating how much money you will bring home in a month. If applicable, this should include your wages and any student loans and grants. Next, deduct your monthly necessities, such as any bills (including your phone bill), monthly subscription fees (for example, Netflix, and gym membership), and food shopping. The sum you have left after your essential outgoings is your ‘disposable income.’ This can be saved or spent however you choose.”
Alex adds, “Try not to feel disheartened if you don’t quite get it right the first couple of times – budgeting takes practise.”
thimbl. has shared answers to six money management questions for teenagers.
-ENDS-
About thimbl.
The thimbl. credit card and the thimbl. Loan are issued by Vanquis Bank Limited. Digitonomy Limited (trading as thimbl.) is a credit broker not a lender, and provides its services to Vanquis on an exclusive basis in respect of each of these products. Digitonomy is paid commission from Vanquis for these services. If Vanquis are unable to provide you with one of these products, Digitonomy will try to find you an alternative product and will receive commission from the provider of that product if you enter into an agreement for it. Digitonomy's registered office is: Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Registered in England and Wales, under company number 08385135. Digitonomy is authorised and regulated by the Financial Conduct Authority, and is entered on the Financial Services Register under reference number 690249. Licenced by the Information Commissioners Office, (registration number ZA007309).
Website: https://www.thimbl.com/
Alex Kosuth-Phillips - Personal Finance Expert at thimbl.
Alex is the Compliance Manager for thimbl.com and is responsible for ensuring our website follows Financial Conduct Authority (FCA) regulations. He is passionate about ensuring that we treat all our customers fairly, and do all we can to ensure a positive experience and outcome for our customers.
Alex has been featured in various news articles and even on BBC television, providing information and guidance on how to avoid financial fraud and scams.