"Coming of Age": Turning 18: advice about overdraft/savings/cards? Etc etc.

D

DellBoy

Guest
Hi all,

I'll be turning 18 this Sunday and being the vaguely financially shrewd person that I am have got an appointment with someone in the bank on Monday morning. I was just wondering if anyone can give me any ideas of what to look for product-wise? Current account obviously (get rid of the under-18s account shackles and so on), but what about overdraft/savings/cards? Etc etc.

Despite my age I''ve been lucky and have been working for the same company for 10 months with €24000 p/a base salary. On top of this there are small quarterly bonuses and overtime etc etc. I have a windfall coming up of between €7-9k plus about €700 in shares. Just wanted to give you a credit background (Permanent contract as well)

I am pretty responsible money-wise, never have to borrow, have very low outgoings etc etc.

Any advice is really very much appreciated.

Thx

DellBoy
 
Re: "Coming of Age"

DellBoy said:
being the vaguely financially shrewd person that I am have got an appointment with someone in the bank on Monday morning.
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Don't expect independent advice from a tied agent such as your local bank official - they are just interested in selling you their own products regardless of whether or not these are most appropriate to your specific needs.
I was just wondering if anyone can give me any ideas of what to look for product-wise? Current account obviously (get rid of the under-18s account shackles and so on), but what about overdraft/savings/cards? Etc etc.
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Have you checked the [broken link removed] and the Financial Best Buys forum for details of the best deposit rates etc.?
Think about your short, medium and long term life goals and use these to guide what is most appropriate to your needs in terms of short, medium and long term financial plans. Don't forget to factor in taxes on the income and/or bonus shares as applicable.
I am pretty responsible money-wise, never have to borrow, have very low outgoings etc etc.
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Are you planning to buy a house any time soon? Or go to college? Or anything else?
 
Re: "Coming of Age"

Welcome to AAM, DellBoy. Stick around, and check out the Key Posts/Best Buys/Posting Guidelines, etc.

Whichever bank you're visiting, be aware that they will inevitably hard-or-soft-sell you their particular products. Listen to what they say, and then come back here and stress-test them against the Best Buys recommendations (or use the search function).

[Edit: Post crossed with ClubMan's. Agree with everything he said.]
 
Re: "Coming of Age"

Thanks all for the warm welcome.

I know what you mean about non-independent-advice and so on, and I don't intend to make any decisions on Monday. I suppose my main question is would I be in a healthy situation credit-wise should I want to get a card with a smallish limit or an overdraft? (I do stress that this would simply be "cashflow management", as I said I very, very rarely have to borrow money from anybody)

Clubman, I'll probably be studying part time starting at some point in the next year or two, and I'm planning to hang on to the windfall money for this. In terms of property, a lot of people do say it'd be a good idea to get a mortgage early, but realistically I'd be waiting for my salary to go up before even considering that.
 
Re: "Coming of Age"

DellBoy said:
should I want to get a card with a smallish limit or an overdraft?
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Do you mean a current account with an overdraft facility or a credit card with a small credit limit for cashflow purposes and online purchases etc. (i.e. clearing any balance each month before interest charges kick in)?
I was just wondering what your plans were. Do you live (rent free?) at home at the moment?
 
Re: "Coming of Age"

Both really. Card would be the easiest for the likes of online purchasing mainly, Laser would do me fine for normal purchases. Overdraft would be handy if I ever do need some money in an emergency.

At the moment I pay very little - €200 all in per month - includes food, broadband. I pay my own phone (VoIP), transport (95cx2 per day to and from work - not breaking the bank or anything) and so on. I haven't really thought about long term planning, though a mortgage would definitely be in the picture.
 
Re: "Coming of Age"

No harm in doing a budget/spending diary to clarify your incomings and outgoings. No harm in starting to think about your longer term plans and fitting your finances to these. What savings/investments do you have already?
 
Re: "Coming of Age"

Nothing huge, as I said I'll have 7-9k, stretch 10k within the next month (compensation from a car accident when I was about 6 - original amount was £7,500 twelve years ago, withdrawals of £1090 and then €1500 have been made since then so whatever way the courts invest it...) I have about €800 in a share account and unfortunately that's about it.

(Just doing the math, it'll prob be 8k tops.)
 
Re: "Coming of Age"

You're dead right. A lot of people make bad decisions. You hadn't previously mentioned 'windfall money'. Be aware (also) that all manner of people/institutions will shower you with offers to 'maximise your return'...

Three simple rules — reject/distrust anything/anyone who
(a) promises you silly returns/profit. If it sounds too good to be true, it usually is.
(b) comes on all 'pally' (esp. agents/brokers who say they'll 'look after you', because they 'knew your Ma/Da'. Finance is a very predatory business.
(c) tells you anything bad about Askaboutmoney.com.

[Hint: Option (c) is just a bit of in-house slagging/blagging. More seriously, anyone 'responsible' around here will always urge you to seek independent, informed advice.]

[Edit: Whoops, just realised I left the screen untended a bit too long. Above comments were addressed in response to your post #4!]
 
Re: "Coming of Age"

Sounds like great fun, makes you want to keep all your money in a jar under the bed
 
Re: "Coming of Age"

I dont think we should be so cynical when advising a young man like this. Although I dont suspect he is so vunerable to take advice from people on a board, whom he knows nothing about. For all he knows you people could be in debt to your eyeballs and sitting in an internet cafe.
 
Re: "Coming of Age"

Cynical or not, advice is advice and I appreciate it all. I may not act on it but I can make that decision myself.

Back on topic anyway, how might you imagine I would stand credit-wise?
 
Re: "Coming of Age"

Hey Dellboy,

You would probably qualify for a credit card, but remember you dont have to take the credit card from the bank you open the current account with. Shop around on an individual basis and get the best deal for both. You shouldnt be paying banking fee's so ulster bank and permanent TSB are prob the best bet there. As for Credit Cards BOS ireland have the best rate, followed by PTSB.
 
Re: "Coming of Age"

Thanks for the help all. If I do decide to keep my accounts with Ulster Bank, would it be wise to, say, bring along a budget and show that I plan my money well, or is that just overkill?
 
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