Advice for son just starting out

jaypers

Depending on his employer, always worth looking at what’s available through where he works…..maybe Sharesave, Sharepurchase etc. Pensions is a big one too and well worth getting him into the habit of increasing his contributions a bit every year when he gets a pay rise. Good habits around not running up credit card debt etc is also well worth a conversation. 

wmb194

Most people start by chasing the best savings accounts.

He should look at the current account switching incentives as well.

https://moneyfactscompare.co.uk/savings-accounts/

Kniphofia7

Get his savings into an account paying decent interest rates asap.  There's no reason to have £13K languishing in an account paying peanuts.

LHW99

Charge him a reasonable contributions to living expenses - then put it into a savings account / ISA in your name which can be handed over to him to help with moving into his own first place.

Bostonerimus1

It's best to develop good money habits when young. Investing in funds inside pensions and ISAs is important as is the old fashioned virtue of thrift. So here are a few things I've done since I graduated from university around 40 years ago that have worked for me.

Make a budget and look to save money, but avoid being a Scrooge; buy the second hand Toyota over the new BMW.
Take note of another character from Dickens - Mr. Micawber: "Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery."
Avoid all high interest debt like credit cards and car loans. If you have any such debt pay it off asap.
Put 6 months to a years spending in an easily accessible emergency fund in the bank.
Put as much as possible into a workplace pension, invest in low cost index tracker funds.
Put as much as possible into an ISA, invest in low cost index tracker funds.
Put as much possible into a general investment account, invest in low cost index tracker funds.
If you want to buy a house don't over extend your finances and don't be in a hurry to buy. Save for a good deposit.

saverkev

Pension

Apart from advice about saving for near future I would always advise start paying a small amount into SIPP every  month (£25 is typically the lowest regular monthly payment that can be made)
There are many around including "Robo" SIPP where there is no need to make investment decisions.

https://www.moneysavingexpert.com/savings/cheap-sipps/

kimwp

saverkev said:

Pension

Apart from advice about saving for near future I would always advise start paying a small amount into SIPP every  month (£25 is typically the lowest regular monthly payment that can be made)
There are many around including "Robo" SIPP where there is no need to make investment decisions.

https://www.moneysavingexpert.com/savings/cheap-sipps/

An employer pension (due to matching and NI if sal sac) or a lisa (due to no tax on the withdrawals) will almost certainly be better options than a sipp