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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

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Chat to the Money Advice Service
Monday to Friday, 8am to 6pm
Saturday, 9am to 1pm.

 

Quiz: How much savings do you really need?

Your car has broken down, your teeth are screaming in pain, or your phone has fallen down a drain. Everything seems gloomy, dark and, in your phone’s case, damp.

This is where having some money put aside will make an awful day a tiny bit better.

Question 1

How much money should you put aside 'just in case'?

6 weeks outgoings

WRONG... The answer is 6 weeks outgoings

Experts suggest 3-6 months wages, but that's for older people with mortgages, and other serious commitments...like children. We'€d suggest around six weeks€ outgoings will do it (saving a months rent is handy anyway in case you have to move house and need the deposit).

To work out your personal six-week sum, sit down with a piece of paper and list everything you spend a month. Stick to the necessities:

Food
Bills,€“ heating, electricity, internet, council tax, phone
Rent
Transport, say to and from college
Tot up the total and make that your saving goal for your rainy day fund.

Question 2

It's always a good idea to put your savings aside BEFORE you pay for the important stuff, like bills and rent.

False

WRONG... The answer is False

After paying your rent, bills, and debt, and ensuring you’ve got a solid emergency savings fund it can be tricky to find any money left, at the end of the month.

But remember that this fund doesn’t have to be huge. Hopefully you'll barely have to use it. Did you know that saving just £3 a day (that’s a supermarket meal deal) can total £1,095 a year?

Question 3

Easy access savings accounts have low interest rates but make your money available in seconds

True

WRONG... The answer is True

They tend to have low interest rates in return for making your money available in seconds, when you need it. Just be sure that you’re eligible and that you can easily transfer money between accounts with no restrictions. Finding one that’s accessible online is great too.

Question 4

How much discount does your Young Person's Railcard get you?

20%
30%

WRONG... The answer is 30%

Use the train? Invest in a 16-25 railcard. It may cost you some tenners initially but you’ll soon make the money back on cheaper fares, including when using an Oyster card. Plan journeys in advance to find cheap (ideally off-peak) prices.

Well done!
Check out some more related articles below.

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Money for Life work in partnership with the Money Advice Service, an independent organisation set up by government. Money AdviceService provides free, unbiased money guidance across the UK to help people make the most of their money.  If you have a question or need help, you can chat to them here.

Launch Chat

Chat to the Money Advice Service
Monday to Friday, 8am to 6pm
Saturday, 9am to 1pm.