The Department of Education and Skills has pages on financial help: www.dfes.gov.uk/financialhelp/

Education Maintenance Allowance - EMA

If you decide to stay on at school or go to college you may be able to get an Education Maintenance Allowance or EMA. 

• EMA is a weekly payment up to £30 (depending on household income)
• You need to be 16 and planning to stay in education from September
• There are bonuses of £100 if you remain on your course and make good progress
• EMA is paid on top of other support or benefits that you or your family get so you won't lose out 

You can now make your EMA application for the 2008/09 academic year online or by telephone. Call the helpline on 0800 121 8989 for more details. Or visit the EMA website: www.dfes.gov.uk/financialhelp/ema

Managing your money

Bank Accounts

Most people keep their money safely in either a bank or a building society. There are two types of accounts you can have:

• Current account - lets you put money in and take it out easily, but does not pay much interest. You may get a chequebook and a cashpoint or debit card at 16 or 18.
• Savings accounts – pays more interest and where you can keep money if you are saving up.

Credit Cards

If you have a regular income and are 18 you can apply for a credit card. When you buy something on a credit card you won't have to pay for it until you get a monthly statement, so you can get something now, but pay for it later. You need to know that you will be able to pay when you get the monthly statements, otherwise you can end up paying high interest and getting into debt.

Bills

You can pay bills by posting a cheque or postal order, or in person, never send cash in the post. Some bills can be paid on line. You can also pay by direct debit from a current bank account, if you have one. You can buy savings stamps at Post Offices to save towards bills.

Remember to keep all your bills, receipts and statements in a safe place. Try to plan paying your bills and keep track of what you pay, so you don’t get into debt

National Insurance – NI

Everyone is given a NI number when they are 16. You will get a plastic card with the number on it and must keep it safely as it your own unique number. If you earn over £96.82 each week you will have to pay NI, which will be taken out of your wages by your employer. If you do not have a card or have lost yours contact the NI Helpline 0845 302 1479

Income Tax

The Income Tax we pay is used to pay for things like education, health, social security, police and defence. If you earn over £94.13 each week you will have to pay tax.  The more you earn, the more tax you have to pay and your employer will work this out and take it out of your wages. To find out more contact the Inland Revenue website at www.inlandrevenue.gov.uk.

Credit and Debt

Usually you cannot get credit until you are 18. If you buy something on credit then you are agreeing to pay back the cost in instalments, with interest added on top. Make sure you know how much the interest will be as it can make buying things very expensive. Sometimes you can buy things with interest free credit, so will pay no more than the cost of the item.

It's very easy to get into debt if you have little money coming in, cannot keep up with paying bills and credit cards, or have a student loan. If you have any problems with money the National Debt Helpline can help you. They can give advice over the phone and send you information, all for free.

0808 808 4000    Mon – Thurs 10-4      Tues – Weds 10-7     Fri 10-12

www.gamblersanonymous.org.uk - For help with gambling problems

Student Loans

A NEW funding system came into operation for students starting higher education courses in September 2006. As a student you will have to meet your tuition fees and living costs. You can apply to your Local Education Authority (LEA) where you and your family's income is assessed and how much you and your family should pay for tuition fees and living costs is decided. For local information on student awards and support phone:

• Bath & NE Somerset: 01225 394319
• Bristol: 0117 903 6666
• North Somerset: 01275 884098
• South Gloucestershire: 01454 863292

You will have to pay back your student loan when you finished have your course, usually not until you are earning enough money to do so.

For advice and information about student finance click here

To find scholarship funding for university www.scholarship-search.org.uk

Benefits

If you are under 18 you cannot claim many benefits. Young people are expected to be supported by parents and carers, in education, in full time employment or in some form of training. However, it may be possible to claim for some benefits.

18 year olds who are unemployed and available for work can claim "Job Seekers Allowance", but the rate paid to 18-25 year olds is less than that for over 25s. In certain circumstances under 18s may be able to claim, such as those leaving care or custody.

Income Support is paid to those who do not sign on as available for work, for example single parents, disabled or too sick to work. In some cases income support can top up other benefits or a low income from a part time job or part time training allowance.

You may be able to claim housing benefit to help pay your rent if you are living on a low income. You could be on a low income because you are living on other benefits, have a low wage or training allowance. Students usually cannot get housing benefit and the rate paid to under 25s is reduced.

There are other benefits you may be entitled to if you have a low income, are disabled, sick or have a family to support.

Working out what benefits you might be entitled to and claming benefits can be complicated and confusing. For more information and advice you should contact your local benefit agency, where they can go through your circumstances and tell you about what benefits you may be entitled to claim.

You can find out more about benefits from the Department of Work and Pensions website  www.dwp.gov.uk

Look at our Contacts section and our 1 Big Database for lots of useful organisations, links and telephone numbers on a whole range of issues that affect young people.