5.1
Tip 1 – Set a savings goal
What do you want to get from your savings? How much do you need to save? When do you need the money?
Tip 2 – Know yourself when comparing rates
How hands on are you likely to be with your savings? Some accounts offer high bonus rates which are designed to tempt you in however the bonuses drop off after a certain period.
Tip 3 – Use regular savings accounts or fixed term deposits
Can you set up a standing order to your savings account or tie up your money for a year or more?
Tip 4 – Be tax-wise
Do you pay income tax? If not, ask to have your account interest paid gross – otherwise tax will be automatically deducted.
Tip 5 – Don’t keep more than £85,000 with one banking group
Cash you put into authorised UK banks or building societies is protected by the Financial Services Compensation Scheme. However this only protects up to £85000
For more information visit the website: www.moneyadviceservice.org.uk

5.2 Needs/ wants/aspiration
Clara saves half of her pocket money so that she can buy a Barbie doll at Christmas. This is a want as it is not something
Sam would like to own a motorbike in a few years’ time This is an aspiration
Following her gap year, Denise has decided she would like to return to south Africa after her studies to help set up an orphanage aspiration
Raj plans to put a deposit down on a flat in two years’ time. needs
Kim has a leaky roof. She thinks she’ll be OK this summer, but will have to have the money to fix it by winter needs

5.3
Why should you save
You should try to save up as saving money can help you to pay off any unexpected expenses through your life. It is a good idea to put some money away regularly and this is the best way to save up for expensive items such as cars and holidays. Also it is a good way of making sure you have money to pay for emergencies for example an expensive