Budgeting tips for when they fly the nest

STICKING to spending limits is much easier if you pay by cash or if you avoid using contactless cards. It’s far too easy these days to tap and go and completely lose track of spending.

MOBILE apps like Moneydashboard and Yolt show you where you might be frittering away money. Once you know where your cash is being wasted it’ll be far easier to make cutbacks.

URGE your kids to put away three months’ earnings in a rainy day fund and to save for holidays in advance rather than paying for them on credit.

TEACH them to always pay off their most expensive debts first. Opening a credit card and paying it off in full every month is a great way to prove they are responsible and will help them to get a mortgage in the future.

DON’T let worries over university fees put your children off studying. You only start paying it back when you earn more than £25,725 a year and the debt will be written off after 0 years.

WHEN your children or grandchildren start working full time, explain the importance of starting a pension. They might be tempted to opt out to keep more money to spend, but tell them they’ll be missing out on free money from their employer and the Government, who help top up pensions.

TEACH your kids the value of investing. It might sound scary, but if they start early and save little and often they will have lots of time for their money to grow and also ride out any bumps in the market along the way. LAuRA WhAteLeY is author of Money A user’s Guide, 4th estate, £7.99.