Son's first full time wage packet-advice please

jenhug

not sure how much he is getting paid, but i'd say take 25% of his wage, then get him to take the rest, halve it, save half and have half for spends.

Nevsy51

Cheers for the advice guys,will have a chat with him in a week or two after his girlfriend leaves for uni for the first time,and his head is in one place-maybe he has found an online florist he can do some good work with this month welcoming her in to her new lodgings wishing her good luck:rotfl:I so hope he has thought of something like that!

cashbackproblems

If you dont need the lodgings money why not put that in an ISA, saving £50p/m or whatever will never give him enough for a deposit (depending where u live), tho if he is not careful with his money he will probably end up spending it when hes older whatever you do.

themull1

I think you should suggest he opens a savings account, then leave it up to him to do his own research into the best one, and i don't beleive in saving any part of the board money to give him back as a present, its up to him as an adult to decide what needs saving etc. Or he will never learn the value of money. My parents didn't even let me off paying their board when i went on a fortnights holiday because they said thats not what happens in real life re rent/mortgage. it taught me the value of money. Good that he's got a job tho.:T

amcluesent

Inflation is high, interest rates are low - you're quite literately robbing yourself by saving.

I'd take a good look around and really ask yourself if peeps who saved and were careful are any better off now than those who enjoyed what they had when they had it. Society is now based on debt financing, and there's economic incentives (mortgage support etc.) to get into debt.

With VAT going up to 20% in Jan, I'd use the money to buy quality things that'll last and enjoy them now.

Doomcow

hindsight is a great thing.

if i had this opportunity again i'd aim to save minimum 60% wages while at home - pay what 15% digs and that leaves 25% spending money so its not spent purely on rubbish, but leaving enough margin for a cd or a dvd or a book or night out or 2 a month.

shy away from santander. what about barnsley at 2.5% for normal savings or bank of scotland for 2.6% cash isa?

have him build a lifeboat of 3 to 6 months take home wages - this lifeboat will see him through any issues, and financial security reduces the stress, and hence making life go smoother...

Bullfighter

Strippers.

He's only 18 once.

amcluesent

Yep, Club 18-30 holiday fund! W00t!

cashbackproblems

Some good points, if you know anything about stocks/shares id recommend paying into some safe ones which will far outweigh any isa or savings account for example i bought into aviva a few yrs back and worked out last night i had made approx 8% per yr (dividend+price growth).

DireEmblem

This isnt really for everyone but how about say Zopa?

Even an HSBC bond account where it has minimum monthly payments has a rate of 8% before tax.