To ask what financial advice you would give a new graduate?

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I am in my 20s and just finished university and hoping to get a graduate job soon. I grew up poor so the idea of having savings or being able to buy a house was something I had never really thought about until now. I know next to nothing about how to manage finances and it is something I can't really ask my parents.

I was wondering what kind of financial advice you would give to your adult DC when they are in their early to mid 20s just starting adulthood? How much should they be saving? What kind of amount in savings should they be aiming for if they want to buy a house?

I'm feeling a bit anxious as all of my friends from university have quite significant savings despite us all being new graduates and a few have parents who have got house deposits saved already for them. I feel quite behind and anxious that my adulthood is already not off to the best start which I know is silly... I also feel guilty as my attitude with money so far has not been great. Having money is new and I spend it on things I shouldn't (e.g. expensive makeup when I could make do with cheaper brands). I think because it has been so novel for me I have been spending it on the kinds of things I feel like I missed out on as a teenager. But I am putting my foot down now and aiming to be more sensible.

I know this is quite a broad and unspecific question and I apologise.

DP grew up poor. When he graduated he lived at home and saved over 50% of his pay.

I would say learn what you want vs need vs can afford.

And dont say yes to that occasion/night out if you can't afford it. Good friends won't care.

Save 10% of every paycheck and learn the basics of investing. Use index funds with low expenses.

I am 30’s when I graduated it was the 07 crash Take any job you can get work hard buy a house as soon as you can.

Get money into a pension from day 1 if you can. If you can commit to 10 years in the same place then buying a house, if possible, is not a bad idea. If you find yourself with plenty of spare savings, don't leave it in cash, invest in stocks and shares ISA.

Pay into a pension as soon as you can.I've many female friends who delayed because they thought they may not have to return from maternity leave, thought their partners earnings would increase etc. Some of them only opted into pensions in their forties.

Bless your heart! I have 5 adults DD's and this is my advice.
First of all start off by reading The Meaningful Money Handbook by Pete Matthew. This will teach you the basics.
Next, always pay yourself first. In other words put your savings away on pay day, not at the end of the month after you see what's left.
You need to make a budget as obviously I can't tell you how much to save since it depends on your salary and personal circumstances.
Be realistic with your budgets and your savings goals. Do have some fun money - you deserve it!
Later, try to "save the raise". In other words, if and when you get a pay rise make sure you add this amount to your savings rather than adding it to your spends.
You sound lovely by the way and I wish you lots of luck OP.

Make knowing the difference between "want" and "need" your new religion. The rush of buying something nice yet unneeded is very, very short lived, but the debt can last for years and years.

OP I recommend you get the book 'money a users guide' asap it's very good aimed at young people. then check out Martin Lewis' MSE website for the most appropriate savings account for your goals x

Have you got a job lined up?

If so pay into the pension from day 1

Listen to Dave Ramsey podcasts

Get thee to a YNAB budget ASAP. (Youneedabudget.com) worth every penny. Pay yourself first. Start saving now.

Look for cheaper ways to enjoy yourself. My budget in my 20's had a 'going out' line of £400 a month and I couldn't understand why I couldn't get out of debt. Heading to my 40's and it's £50 a month. I'm a debt free homeowner with a chunky pension because I wised up in my 30s. If I'd wished up at your age I'd be even better!

Also, for everyday expenditures, use only cash. It is so easy to spend far more than you realise when paying with a debit card. Don't eat out all the time, make coffee at home rather than stopping by a cafe every day, buy alcohol to enjoy at home rather than going to pubs or clubs frequently. These little purchases massively add up.

Start your pension now, because money invested now has years and years to grow.

Save sensibly.

Do go too hardcore either. Budget money to enjoy yourself.

A lot of really good advice here!

I would say with any raise, allow yourself a small increase in spending money so you feel the difference then split the rest between savings and pension e.g an extra £100 a month = 50 in saving 1% extra in pension and anything left over you can spend.

Definitely agree with paying yourself first - direct debits for pay day or just after into your savings.

Read up on the different type of savings and think about what you are saving for and how long term that is to make sure you have the right saving strategy for the timeframe you are saving to.

Great question! The fact you're thinking about these things at a comparatively young age will serve you well in life. 😊

Build up a rainy day fund as soon as you can. Aim to three months' nett salary to start with and then build from there. If you can only save a little to start with that's ok, the important thing is to get started and to do it. Then start a pension and a house saving scheme, learn about the options there are to help young people. Read moneysavingexpert.com regularly and explore the forums, there are loads of very wise people on there who will teach you all sorts and answer any questions.

Learn that it's not just how much you earn that matters. How you spend it is equally important, so spend it wisely. Anything you can save on everyday expenditure makes a difference to your net worth - and it's tax free. That's not to say you should be stingy, but be discerning in your everyday spending. It's quite easy to spend less and not really notice it in many areas if you shop wisely and save it for the things that are important to you.

And best tip of all - read the financial press, learn about consumer finance and educate yourself. It's served me well over the years. Good luck and well done for realising this stuff is important.

Check out Dave Ramsey on YouTube, he runs daily shows and has books on financial peace. I wish I had known him while I was in college. Since knowing him, he has changed my mindset when it comes to money, paying off all debt, having an emergency fund and investing.

I think it's really important that you treat yourself to nice things, while also saving. The thing is that if you spend money casually, you don't get to enjoy it, really.

Most money seems to be wasted on eating out, I think, and takeaways, too. That money could be saved or could be spent on something lovely.

Always have things in that you like to eat so that you're not tempted to order in food. Try to go food shopping once a week rather than every night after work. And keep a spreadsheet, so you can keep on track.

Pension up asap....don't waste money on designer anything, learn to sew, decorate and do DIY, make saving a lifelong habit,

Being a homeowner isnt all it's cracked up to be, consider alternative ways of low impact, low cost living - Narrowboat, Motorhome, park living...above all, live your life and don't be a wage slave x

Keep saving until you have a 6.month cushion in case of redundancy/job loss.

Can you get a second job....working in a Bar on a Friday/Saturday night can give you a sort of social life whilst being paid for it and you save by not paying to go out.

Look into some money management apps, like Yolt or YNAB. There’s nothing wrong with spending money on things you enjoy, like makeup, but make it part of your planned expenses so you know you’ll be able to meet your other commitments. The same goes for things like holidays and going out.

Have a savings target, such as 3 months salary. Your savings are there to work for you, so if you need to spend them, e.g if you’re out of work, do.

Try not to get hung up on what other people can afford- there will always be people who’re earning more, or get money from their parents. Don’t go into debt trying to keep up with the Jones’s.

Thank you for all of the advice so far, I really appreciate it and will go through your posts slowly tomorrow and start making notes. It feels good to be actually doing something about the unsettled/anxious feeling I have right now. I feel like I am more in control already. :)

Just as the advice above.
Invest in a pension
Also as said before pay yourself first.
So on day one of payday put approx 10-15% of your pay into a separate account. This money is not too be touched. In fact act as though your normal pay is 10-15% less.
Another thing to be wary of is as your salary increases you should be careful that you dpnt get lifestyle inflation.
E.g. you get an increase of 10% in your salary so you then get a car on finance that costs the same pr more than the increase. Best would be to put all or most at least 85% into the initial pay yourself first.
So if your salary increases by 10% most of it should go into an increase in the amount you put aside each month. In this way you should never have any unexpected bills you cant afford.
Apart from a mortage/ student loan dont borrow money.
Only buy something if you can pay for it outright.e.g. sofa/ white goods/ laptop. Avoid cars on finance. If you haven't got the money save up.
Only use a credit card if you can pay off the balance that same month. It's just not worth it on the end.

Pay into your employers pension scheme (they pay in too, it's free money) but other than that, enjoy having money for a bit and enjoy pissing it up the wall for a bit. A lifetime is a very long time and you will likely have to spend a lot of that time being sensible, paying bills, budgeting, meal planning etc etc. Enjoy yourself and spend your money unwisely for a couple of years, it makes no difference further down the line. Don't be in a rush to tie yourself to financial commitments, it can limit your possibilities at a time in your life when possibilities are most likely to be endless.

Don't go into debt though

Mmme, my other half was always very clear when we were younger and skint saving on spending is great but focusing on increasing earnings is much more important. He was right. No amount of packed lunches and Aldi will compete with a 5k pay rise. Focus on what your boss needs/what their boss needs. Deliver this, be strategic and think ahead, be focused and work towards your goals. Don't downs money on crap expensive make i

I feel quite behind and anxious that my adulthood is already not off to the best start which I know is silly...

They’ve been given a boost and you haven’t. That’s not the same as you being behind. If you’ve graduated and and are about to start a proper career you are definitely not behind on anything, and are actually ahead of a great many people. Don’t worry about shit like this, it’s not worth the head space.

Other than that:

• pay savings first just as if another bill
• where do you want to live? A one bed flat at first? Look on zoopla/rightmove etc and see what they go for in the area you want to live? Aim to save at least 10% at least of that.
• don’t sign up to anything bills wise or buy anything before you check on Cashback sites like Quidco and Topcashback. Its money for nothing. Take it.
• switch everything every year - energy, internet, insurance, current account even if there’s good deals to be had. Loyalty doesn’t pay.
• There’s a (very old) Scottish saying that I like - “mony a mickle macks a muckle”. Lots of little things add up to a big thing. To paraphrase the translation - “look after the pennies and the pounds take care of themselves”. £2.50 on a latte every working day is 12.50 per week or £600 per year, allowing for holidays (which = 10% of your 10% flat deposit in my neck of the woods)
• Martin Lewis is your God. Loads of advice and straightforward calculators on his site to mess about with a get an idea of what your decisions could mean. The Demotivator is great.

First steps are to get as good a job as you can, work hard and keep looking forward for other opportunities in your company but also at other companies that can help you climb the ladder

Make a budget and track your spending. I use Yolt, an app which can connects to most online banking and groups spending by type. I can set a budget there for various sectors (groceries, coffee, nights out etc) and it alerts me if I am nearly overspending in any one of them.

Set up an automatic payment to a savings account on the day you get paid. I would recommend two actually - one payment to a easy access saving account where you put money aside for nice things you need to save up for like a holiday. And a second payment to an ISA account which is NOT TO BE TOUCHED unless it is a real crisis OR you are buying a flag and using it as a deposit.

Pay into your workplace pension. Your employer should contribute something - ideally you pay as a % of your salary half the age you were when you started. So if you are 24 now, aim for 12pc but that includes employer contribution so if they pay in 6pc, you pay in 6pc.

Take your own lunch and snacks to work 90pc of the time. 10pc eat out while bonding with colleagues/networking.

Avoid running a car if at all possible- really expensive. Get a bike

Don't smoke or take cocaine or take up gambling.

Don't compare yourselves to others in terms of what they can afford -they may have family money they aren't saying anything about, or be running up massive credit card debts, or be stealing money from their employer. You never know the full story.

All schemes that promise rapid riches from just a few simple steps are A SCAM.

Store cards, hire purchase schemes, buy now pay later schemes like Klarna are all terrible ideas. If you can't afford it now, don't buy it.

That said, having a credit card and spending small amounts that you pay off every month is a good idea to build up your credit history

In fact I went one step further. We've been very frugal recently.
We've been saving for a house deposit. So for the last few months I allocate my spending money into the spending account and we cant spend more than that.
E.g. not the real figures but if you get paid £2500.
As soon as I get paid i transfer a certain amount which includes money for treats e.g. £1500 into the spending account. The £1000 goes into a savings account/ premium bonds until needed. The £1500 is all i have to live on for the month, and can only spend that much. If you are careful and have a surplus then you have more to spend in the spending account the next month. If I have any unexpected bills reluctantly we can take money from the savings account but it just reduces the deposit.