Savings Advice - Lloyds TSB Advice and Guidance

http://www.lloydstsb.com/advice_and_guidance/advice_and_guidance.asp I know that saving money can seem like a bit of a chore, but once you've got a few simple savings habits in place, it will become a lot easier for you. Aside from giving you greater long-term security, you'll be able to sit back, relax and watch your money grow.

Why should I save money?

People save for all sorts of reasons. In my experience, it's usually one of three.

The first thing people like to save for is something special like a car or a holiday. I know that when I went to Spain, saving really helped me. It made it a lot easier and meant I didn't have to borrow in the future.

The second reason people normally save is for something like a property deposit, or if you're saving for your child's education.

And the last thing is when life brings its little twists and turns, and you need to make sure that you've got that little safety net in place for yourself. It makes you feel a lot better knowing that it's there. If you've got anything else left over, at least you've got something to spend on yourself too.

Where do I start?

Budgeting is essential to working out where your money is going and also what you can afford to save. The first thing you should look to do is open up an instant access savings account with a high rate of interest, and set up a monthly standing order. Try to set it up so it comes out just after pay day, and you'll barely even notice it's gone.

What are the next steps?

Hopefully by now your money is growing, so you can start to think about other types of savings accounts to open. I personally find that ISAs are a good way to save because the interest you'll earn is tax-free, and I like to make the most of my tax free allowance.

If you have a lump sum that you don't think you'll spend any time soon, then you should think about putting it into a long-term deposit or a savings bond as it will often give you extra interest. But remember, you'll need to tie your money up for a set number of months, or even years, so if you think you'll need the cash it's probably not right for you.

How do I get my family involved?

Hopefully your good habits may just rub off on your children. My little nephew has a piggy bank and he loves to save his pocket money. It really has helped him understand the importance of managing money. In fact, research shows that children who start early are more likely to save when they grow up.

If you've got slightly older children, check with your bank to see if they could offer accounts for under-16s.

Category:

Education

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