Managing your money

Budgeting is an excellent way to manage your money

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When you budget, you build a clear picture of what money is coming in and how it is being spent.

A budget gives you a better idea of how much money you have each month, allowing you to save money, set money aside for emergencies, and make arrangements to lower your debts.

You can download our simple budget planner if you'd like some help to get you started with budgeting. You can also tap the tabs below for more information on budgeting.

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How do I budget?

When you budget, you should list your:

  • Income: list what money is coming into your home, i.e. your wages, partner’s wages, benefits, child maintenance, etc. to give you a total income.
  • Outgoings: list all your outgoings, bills, expenses, food, debts, etc. to give you a total expenditure.
  • Disposable income: this is anything left over after all your outgoings have been taken from your income.

Ideally you should have more money coming in than going out. If you need support to look at your finances, check you're receiving all the benefits you qualify for, or need help with debt, just tap here for more information and contact details for our Money Advice Team. We're here if you need us.

Which documents will I need to help me with budgeting?

Get together as much information as you can before you start to complete your budget planner (which you can download above).

Look for documents like:

  • Bank statements over the last few months.
  • Debit and credit card statements over the last few months.
  • Income details, payslips, benefits letters, etc.
  • Regular bills and outgoings (looking at your Standing Orders and Direct Debits can give you an accurate idea of what you spend on things like rent and bills).
  • Receipts for things you usually pay for in cash.
  • Food bills: gather all receipts for the last three months, then divide by three to reach your average monthly spend.

Make sure you include all your expenses. For example, any money you spend on your partner or family.

How to set up a bank account

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There are many different types of bank accounts available if you don't have one. Here are some things to consider:

Most bank accounts will provide you with a cheque book and a debit card to withdraw money. They'll also allow you to pay bills and receive money paid in (such as a salary or benefits).

It's important to remember that most banks are likely to charge bank charges or fees if you go overdrawn or fail to make a Direct Debit payment.

If you have a low income or have difficulty managing money or a bad credit rating, you can apply for a 'Fee Free' account.

What are 'Fee Free' bank accounts?

'Fee Free' accounts are designed to help people avoid debt or incur bank fees or charges.

They're similar to current accounts (because you can use them to pay bills, receive a salary and/or benefits, and withdraw money using a debit card), however, you won't be issued with a cheque book. 

The main benefits of 'Fee Free' bank accounts are:

  • You can't go overdrawn or incur bank charges or fees.
  • If you don't have money in your account to pay for a Direct Debit, the bank will stop the payment without charging any fees.

How do I find a 'Fee Free' bank account?

Some of the banks that offer 'Fee Free' or 'basic' bank accounts are:

  • Barclays: Barclays Basic Current Account
  • Santander: Basic Current Account
  • NatWest: Foundation Account
  • RBS: Basic Account
  • HSBC: Basic Bank Account
  • Nationwide: FlexBasic
  • Co-operative Bank: Cashminder
  • Lloyds Banking Group (including Halifax and Bank of Scotland brands): Basic Account
  • TSB: Cash Account
  • National Australia Bank Group (including Yorkshire Bank and Clydesdale brands): Readycash Account

Our Money Advice Team can help you to open a 'Fee Free' bank account. Just tap here for more information and contact details for our Money Advice Team. We're here if you need us.

Which documents do I need to open a bank account?

Here's a look at the documents you'd typically need to open a bank account.

Remember that each bank may have different rules and paperwork, and that it's always best to check which forms of identification are acceptable before you apply.:

  • Application form: you may be able to fill in an application form online, at the branch, or over the phone.
  • Proof of identity: provide proof of your identity. For example: your driving license, passport, birth certificate*, or benefits letter.
  • Proof of address: provide proof of where you live. For example: a recent utility bill, Council Tax bill, benefits or state pension notification letter, HMRC tax notification, or Jobcentre Plus letter containing your full address and National Insurance Number.
  • Alternative identification: if you don't have any of the documents that the bank wants, they should accept a letter from a responsible person who knows you, such as a GP, teacher, social worker, or probation officer.
  • Other acceptable documents: your bank may accept other documents as proof of identity or address. For example: an original letter from the Department for Work and Pensions (DWP), HMRC, Jobcentre Plus, or your local council confirming your right to benefits, including Universal Credit.

*How do I order a duplicate birth certificate?

You can tap here to order a new birth or adoption certificate from the gov.uk website if you have lost the original.

What should I do if I have money worries?

Do:

Don't:

  • Ignore debts. They will not go away and the longer you leave them, the worse they will get.
  • Panic. Friendly staff in our Money Advice Team provide a free, independent, and confidential service to help with money worries.
  • Take out more loans to pay off debts. Talk to us first.
  • Feel alone with your money problems. We're here to help, so please contact us.
  • Feel harassed or intimidated. You still have rights even though you owe money.

Be aware of high interest lenders:

Debt management companies, doorstep lenders, loan sharks, and high street money lenders all exist to make money from you. They will charge high interest rates and make charges for lending money. You can tap here for our guidance on how to prevent and deal with debts.

We understand people may need to borrow money sometimes. If you need a loan, we’d recommend a local credit union like Hoot – Bolton’s Credit Union. They offer low-cost loans at a fair rate of interest and help you save money for the future. Tap here for more information on Hoot Credit Union.

You can access advice and guidance on a range of money topics on our website: