Managing your own money

From age 11, you can have a bank account in your own name. But you will need your parents' permission to open an account, as they need to provide proof of your identity and address.

From age 16, you can open a bank account without asking your parents.

If your parents set up a savings account for you, it is likely that you cannot use the money in it until you are 18. This will depend on the account’s rules.

Cards and bank accounts for under-18s (MoneySavingExpert)

Parents or guardians can add money to prepaid or top-up cards for people under 18 to use.

You can use the card to pay for things online or in shops or sometimes withdraw money at cash machines (ATMs). 

Using this type of card can be a good way to start managing your money with help from family.

See types of prepaid and top-up cards (MoneySavingExpert)

Banks and building societies have various types of accounts. The main ones are:

• a current account where you can manage your income, bills and spending
• a savings account
• a student account for people in college or university

It is a good idea to look at a range of accounts and what they offer before you decide.

Find a bank account that’s right for you (MoneySavingExpert)

Accessible bank accounts and services

To open a bank account, you need to:

• get your parent or guardian’s permission if you are under 16
• show ID and proof of your address if you are 16 or over
• complete an application form online, in person or by phone

Check the bank’s website to see what type of ID they accept.

How to open a bank account (Citizens Advice)

Supporting yourself financially - a guide for young adults aged 16 to 24 (MoneyHelper)

United Response offers easy read guides on banking.

Making money easier (United Response)

The Payment Exception Service allows you to collect benefit or pension payments without a bank account.

The service is only available if you cannot open a bank account.

Payment Exception Service (GOV.UK)

You must be 18 before you can:

• apply for a credit card or store card
• have an overdraft
• apply for a loan
• get a tenancy agreement to rent a property
• apply for a mortgage to help you buy a house

Getting a credit card when you’re under 21 (Finder)

If you apply for credit, make sure you can afford repayments.

Help with debt

When you are 18 and a bank account is in your name, you can add another person to help you manage it. For example, a family member or friend.

Banks sometimes call this a third party mandate. 

You can also remove someone from your bank account if you wish.

If you make a mistake with a payment

Sometimes mistakes happen when you’re transferring money or paying for things. For example, sometimes people transfer money to the wrong bank account. Or transfer the wrong amount.

Contact the bank as soon as you can. Let them know what has happened. It is likely that they can fix the problem for you.

How do I get my money back if I've made a bank transfer to the wrong account? (Which?)

Not everyone feels comfortable talking about money. But being open with people you trust can help everyone feel reassured.

Create a budget

A budget is a plan to decide how to use your money. For example, you might want to spend or save some.

Try using a free budget planner to help you think about how you can manage your money.

To avoid forgetting to pay bills, you can:

• set up reminders on your phone
• set up an automatic payment, such as Direct Debits, standing orders and recurring card payments (MoneyHelper)

You are in control of your money

When you are 18, no one else can manage your money unless:

• they are your appointee (someone who helps you manage benefits)
• they are your property and financial affairs deputy (who makes decisions for someone who lacks mental capacity)
• you have a lasting power of attorney (where you choose people you trust to help you make decisions)

If your parents do not let you manage your money or do not think you can make your own decisions, you can:

• ask someone you trust for help speaking with your parents
• get free advice from MoneyHelper
• contact Citizens Advice for help

Contact the charity Mind or your GP if money worries are affecting your mental health.

Money and mental health (Young Minds)

When you manage your own money, you may want to manage your social care package too.

Depending on your situation, you may decide to:

• manage direct payments yourself
• or ask the council to manage direct payments for you

You need to be 16 or over to manage your direct payments.

If you decide to manage them yourself, you may have to deal with some admin, like taxes and holiday pay for carers. You can ask the council’s direct payments team for support with this.

The council can help you decide what's right for you.

Find out more about direct payments.

There are lots of ways to learn about managing money. You could start with:

• MoneyHelper free Government-backed guidance on money
• MoneySavingExpert financial education for young people
• Dosh has easy read guides to managing money 
• Money Made Easier (United Response)
• Scope's online money forum to chat with other people in similar situations

You could also contact your local council who might have a service that helps people manage their money.