To ask for help with how to best manage my money as a younger person?

[watermelonlove]

I've been on here reading threads for a while but thought I would name change for this one as it's a tad more personal!

I'm 20 years old, going to university in September & have previously not worked aside from a summer job here and there due to studies. Therefore I don't really have any money!

I'm being given an amount of money by a family member who has kindly released some equity & wishes to help the younger ones in my family out. It's around about 1k. (Not got the money yet but it's been confirmed).

I have a few debts to pay (small credit card debt of £100 & a payday loan of £170) and once I've cleared those I will be closing the accounts as I've learnt my lesson with them!

I also am looking to purchase a stationary bike as I used to run a lot but injured my knee. Can't afford a gym membership monthly but saw some well reviewed gym bikes on Amazon ranging from £160-199 and thought that would make more sense than shelling out money each month for a membership. Also having the bike at home would inspire me to use it more as it's easily accessible + can take it with me when I move out.

The rest of the money I want to put into a savings account (I have a debit card but don't want it on there as it's too tempting!) but I don't know which kind to go for? Can I contact my bank and ask for an appointment to discuss options or is that only if you're investing/taking out a mortgage etc?

Thanks!
(I'm also looking for a job atm but nowhere here seems to want students! so when I get a job will also pay some money into savings each month).

Where are you going to uni? If it’s a large campus you’d get more use from an actual bike. I’d also check Ebay for a second hand stationary bike if that’s what you want-it’s the sort of thing that’s bought and not used much and would be cheaper second hand.

Jobs wise see if you can find a local events company that needs ad hoc waiting staff. Can usually pick and choose shifts and there’s holiday work too. Even better if you have transport.

You won’t get much of a return from savings at the mo. You may be better speaking to an independent financial advisor- perhaps the family member gifting the money can help?

Lots of unis have student gyms either free or at a very low cost

@moreismore Not saying for privacy but it's pretty easily accessible by walking and I've had an actual bike stolen in the past so not risking that again.

Yeah I've been looking at eBay too, so many options! :)

@moreismore I've done that! Also applied to temp agencies, loads of jobs that don't require qualifications and I've even stopped mentioning I'm a student on my CV incase that is putting people off.

I had a job interview last week for a waitressing position in the evenings and they turned me down there and then at the interview as I didn't have '3 years of catering or waiting experience'

I don't drive unfortunately.

@moreismore I guess I could ask, I just thought I could go into my bank and ask for an appointment

I think you need to be thinking in terms of your living costs - that has to be prioritised rather than exercise.

If you are living in student accommodation that will be expensive, are you taking out a loan?
You need to think about transport costs, food and general living expenses.
Think about all the things that are necessary- and then look at you income- how do the figures match up?

If things are tight you will need to think about getting a part time job, the thousand pounds you have may be better spent on rent 0- when money is tight exercise is a luxury.
Having said that most universities have excellent sports facilities, and you may find much cheaper than privete gyms- or an exercise bikes

Good luck!

You could always look at second hand bikes? Be cheaper....

@MODGNIK Yeah, I just like the idea of having the bike for now, but also to keep and have either in my room (if it fits) or keep for when I leave/stay at home. Also I can study on the bike & not have to worry about trekking to the gym & washing gym clothes.

I can just get out of bed, workout in my pjs then chuck them in the wash.

@speakout I have thought about that and I can actually commute to this uni and stay home or my boyfriend has offered to let me move in with him (he rents & finished his degree last year) so I could potentially end up not having to use my student maintenance on rent at all.

I worked out I'm eligible for the highest amount.

I'm looking for a job currently & will also work while at uni.

Look on FB selling sights for a second hand bike - loads go for under £40! Most have little use!

Open two accounts, make sure you ask about student accounts as they offer discounts and vouchers etc

Look for work insights like m&s boots etc direct, don’t worry about uni, these stores can arrange transfers to your new local stores of toubproce yourself

I'd put it in a Goldman Sachs Marcus online account which will pay 1.5 % interest for a year. Or you could look at Moneybox which is a stocks and shares ISA that you control via an app. You can set the risk level you're comfortable with.

@MoMandaS that sounds so confusing 😅 that's why I wanted to talk to someone at a bank so I could have it all explained easily lol.

Seems like there are loads of options!

@GreenTulips I've been keeping an eye out, a friends mum was recently giving one away free but she chose someone else even though I was the first to comment and message (she said so herself!)

I like the idea of new though as I can be sure it won't be damaged in a hidden place.

It won't be confusing if you just look them up. A bank will assume you understand terms like 'interest' (which is money that gets added to yours, so if you have £500 at interest rate of 1% they'll add £5) or 'stocks and shares' which is when your money is invested in various businesses and grows or decreases based on the success or otherwise of those businesses. An ISA is an account where you don't pay tax on any interest you earn.

It's a small amount of money left over for savings once you do all that so just have a convenient savings account with your own bank that you can keep track of easily. Once you've paid off your payday loan vow to NEVER get one again, they can seriously effect you in the future as even if you run then well they are viewed as a negative thing to have and can effect you when applying for mortgages. I'm a mortgage broker do I speak from experience of dealing with clients.

It really depends if you think you might need the money while at uni. I wouldn't make an appointment with your bank as they'll just sell you their own products. On that amount of money you won't make huge amounts. If you don't want to spend the money you could put it in a fixed one year bond (can't access it for one year) if you might want to use it try an online high interest savings account. Marcus by Goldman Sachs is good - 1.5% interest a year and instant access. You're not really going to be earning much interest with that amount of money but it's a good idea anyway to start a savings account and save even just a tiny amount a month. Lets say at least £50. You won't miss the money before you're used to spending it. Then you'll have an emergency fund and never be tempted by loans again!