Saving

You should think about the unexpected costs that may arise in your life and plan for these as best as you can.

If you own a car, your emergency pot of funds should be enough to help if something goes wrong. Plan ahead for your MOT and put money aside each month to pay for your road tax or car insurance. If you own your home or rent an unfurnished property you will most likely be responsible for your cooker, washing machine, fridge etc. Most homes would not be able to cope without these and an emergency fund is an ideal way to be prepared.

Insurance is an important way to be prepared for emergencies, particularly for your home. Even if you are renting a furnished property, insurance for your contents is still recommended.

Try to set a small amount of your income aside as soon as you get it. If you keep a close eye on your bank account and think you might be about to go over your balance, you can then transfer some of those savings in to your account to avoid being charged interest on your overdraft, or other charges from your bank for spending money you don’t have.

If you manage to get through the month without needing to use the money you set aside, forget about it and do the same with your next monthly income. You will soon be building a steady pot of emergency funds to be used whenever you need it.

It is always tempting to buy what you want, when you want it. However, if you don’t have the money available, using credit cards or other types of borrowing is not the solution. Ask yourself, if you couldn’t afford to save in advance, how will you afford to make the repayments?

Buying with money you have saved means that you don’t have to repay on a monthly basis. It also gives you time to carefully consider your purchase and/or to wait for the price to reduce.

Traditional savings accounts pay higher rates of interest than day to day current accounts, but you don’t usually have instant access to the money you’ve saved. Accounts like this are great if you have a regular income, can comfortably afford all of your outgoings, and want to tuck money away for the future.

For most students, your income will vary throughout the year and many students will sometimes find it challenging to meet their living costs. A lot of banks now also offer much more accessible savings accounts – sometimes simply called “Pots” – which you can set up using online banking or via your bank’s app. You can even set up more than one, for different types of expenditure, to help you to budget.

Accessible savings with instant transfers from one account to another make it really easy to put money aside, and then use it when you need it.

Some banks offer 'Save the Change' accounts, and you can usually sign up via online banking or your bank’s app. These are instant-access savings accounts which automatically round your purchases to the nearest pound and then move the change from your current account to your savings. You’ll be surprised how quickly this adds up!

Maybe you’re paid in cash, or prefer to withdraw money as and when you need it as part of your budget. Whatever the reason, if you’re still getting home with pockets full of change then nothing beats an old-school change jar. Most local supermarkets have a machine that counts your change for a small fee and turns it into vouchers to use in that supermarket.

If your budget allows, try to empty your pockets every evening and put everything except £1 and £2 coins in your change jar.

There are now more opportunities than ever to try to make your money 'work for you', but this also means there are higher and more widespread risks than ever before too.

If you’re considering investing your money outside of a typical savings account e.g. in cryptocurrency, then make sure you do your research and get impartial advice from reliable sources first. Promises of quick returns and high payouts can be very tempting, but when something sounds too good to be true, it’s usually because it is.

Keep yourself and your money safe, and be on the look out for scams. This Money Saving Expert article shows just how convincing some scams can be, and how to spot the red flags.

A credit union is a mutual organisation. This means that it is owned by its members, who reap the benefits of the business and keep the money in the local community. Essentially, it is a community based savings and loans provider.

If you like the idea of supporting your local community rather than seeing profits passed on to a bank’s shareholders, credit unions are something you should seriously consider.

Without the pressure of making profits, many credit unions are able to provide competitive financial services to local people who may not be eligible to borrow from banks and who may have needed to resort to very expensive payday lenders.

We have a number of students who use credit unions to top up their student support. By saving a little each month, they can then access an affordable loan to help bridge the gap in the summer months when student support payments are not made. When the next year comes, that loan can then be repaid in manageable instalments.

Credit unions are just as accessible as banks and often you can join online as well as check your savings account and loan repayments.

Before borrowing any money, we would suggest you take a look at our borrowing money page. This will help you work out whether you really need to borrow and offers advice that can help you work out the best way for you to borrow money if you need to.

We work closely with Renfrewshire Wide Credit Union, based only a stone’s throw away from the Paisley Campus. However, credit unions exist in many communities and you can find yours by searching Find Your Credit Union.

RWCU have created this video to tell you a bit more about how Credit Unions work, how to become a member and what products and services they generally offer. They also answer a range of other FAQs around credit union membership and this will give you a good overview of what is on offer via these organisations.

Right Way Credit Union Benefits Video

There are five credit unions operating in Renfrewshire of varying sizes, offering a variety of services. RACA provides all the information you need to make an informed choice about joining a credit union that best suits your needs.

RACA is a not-for-profit organisation operating within Renfrewshire to provide information on fair and affordable credit for all.

You can join Right Way Credit Union (RWCU) if you live, work or study in Renfrewshire. This is known as the common bond - something that links you to the local community and is required to be a member of many credit unions.

1st Alliance Credit Union is based in Kilwinning with various access points available across Ayrshire. Similar to most credit unions, they offer a local service to local people.

Solway Credit Union's primary aim is to ensure your financial health by encouraging you to save and borrow responsibly. Like most credit unions, they are a ‘not for profit’ organisation which is run by members for members in the local community.

Thistle Credit Union operates from various locations across Lanarkshire, offering opportunities for the local community to save and borrow responsibly.

There are several Credit Unions operating in London, including London Mutual, London Capital and London Community. Do your own research into your local Credit Unions and see whether/which one suits you and your circumstances best.