Where will your money go?

As you take your first steps towards independence, money can be a limited resource – so it’s good to understand the options open to you for the essentials along the way.

If you budget carefully, you can make the most of what money you have and won’t necessarily need to get yourself into debt.

  • Continuing your education

    If you’re going on to further education, you may want to consider an overdraft if you need a bit of breathing room with your cashflow.


    An overdraft is a safety net for an unexpected expense or to tide you over for a short period of time.

    It might be tempting to use your overdraft limit as your spending limit, but it will have to be repaid so be careful not to borrow more than you can pay back.

    Your bank can also ask you to repay it in full at any time, and you may incur charges.

  • Buying your first car (or something else)

    If you need extra money for a larger purchase, a personal loan may be more suitable than an overdraft.

    A loan is paid back regularly for a set period (of your choice), and when it’s paid off, that’s it.

    Budget Calculator
  • Getting a credit card

    A credit card allows you to buy items and services now, and pay for them later. The amount you can borrow in total (your credit limit) depends on various things.

    If you pay everything you owe and clear your balance every month, then you will not be charged any interest. If you don’t do this, you may be charged.

    A credit card can offer a flexible way of paying for things, but it carries responsibility. Make sure it’s right for you.

  • Starting a job

    Maybe a job is far from your mind at the moment but if you’re starting a new job, or even your first job, you may also need a bit of help with your money until you get settled in.

  • Buying a house

    Owning your own home may not be every 18 year old’s top priority, but it is achievable! It may not right for you at this age, but for some people it makes sense. The main barrier is often getting the necessary deposit together.

    Most banks and building societies will need you to have saved 5 per cent of your house’s value before they give you a mortgage. This is often where ‘the bank of Mum and Dad’ steps in!

    Some banks lessen the cost of getting a mortgage for people your age, by offering cashback, lower arrangement fees, and other incentives.

  • Seeing the world

    It might be that none of the above appeals to you – there’s a world out there to be explored!

    When it comes to paying for things while you are on your travels, there are several options including using your debit or credit card, or maybe you want to take some cash.

    Before you sling your backpack over your shoulder, find out how much you’ll be charged for using your debit or credit card abroad, or whether you can get commission-free foreign currency before you go.

Danske Bank current accounts

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