Money. Save it. Spend it. Understand it.

Get yourself a savings habit

Start small, save regularly and think big.

Most of us get into the habit of spending on little treats like coffees, sweets, or soft drinks.

We don’t miss the odd couple of quid, but it can soon add up to a sum of money we’d really miss if we spent it all at once. Why not try adding up exactly how much you're spending on treats each month - you might be surprised!

What if you saved that money instead? If you get into the saving habit, you'll be surprised how quickly you can build up a tidy sum.

Pay yourself first

Everyone's after your cash. The coffee shop, the snack bar, the newsagent, the supermarket, the mobile phone company.

The list goes on and on, but you should put No.1 first. Open a savings account and set up a standing order so that something is paid into it automatically every month.

Make sure you get the best interest rate possible and try not to touch it. Thanks to compound interest it'll soon build up into a very handy lump sum.

But make sure your savings account is easy access if you think you'll need to get hold of the money in an emergency.

Start small – think big

Just like the little things that we all buy without missing the few pounds we spend on them, the money we put into savings accounts can be the same. So start with a small amount - you'll soon find you don't miss it. Before you know it, you'll have £50, £60 or even £100 set aside.

For a definition of AER, Gross and other terms take a look at our savings glossary.

Set a target

It’s much easier to save for something specific where you have a goal to aim for. Some people save simply for a ‘rainy day’, others to pay for the special things in life.

When you have a set target it always good to see the money steadily mounting up. But make sure your targets are attainable by saving – you could get that mobile phone or laptop quite quickly whereas a deposit for your dream home could take a long time!

Challenge yourself

Save for the things you want in the short term, like a new phone, a sound system, or a games console. Once you have enough for the thing you want, you may find you prefer having the money in the bank.

Then, you can set that sum of money aside and think about the long term. Lock it away for a fixed term and earn a better rate of interest.

Then you could think of something else you would like. And keep paying into your savings account until you’ve saved enough for that.

Key point

Don’t delay. If you start small you won’t even miss it.