Making your money go further

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Getting the things you want for a good price is a mission most teenagers are on – your allowance or earnings from your-part-time job may not mean you can make extravagant choices, especially if you’re saving for your big OE or your study.

Making your money go as far as it can is a skill that will be useful your whole life – it means you will be able to save extra money when it comes in. So here’s the pulse guide to getting a good deal.

Research before you buy

Use the internet, the yellow pages and the phone and if possible inspect goods before you buy them. Buying things you haven’t seen is risky, especially if they are breakable and being posted to you. Things like iPods, laptops or can become expensive jigsaws in the post.

Prices will vary, as will warranties and return policies. Use online sites like PriceSpy or PriceMe to compare costs and remember to include any shipping or postage charges.

Know your rights

When you buy things there are standard rules for you and the shopkeeper or business. You are entering a contract, and this is covered by consumer law.

Consumer rights are about situations you might be in as a buyer – perhaps goods are faulty, or didn’t do the job they were supposed to. Refunds, returns and advertising rules are well detailed at the Citizens Advice Bureau’s lowdown site, and in this handbook (128Kb .pdf). The Ministry of Consumer Affairs website also has comprehensive information on motor vehicles, faulty goods and services (and the Consumer Guarantees Act), product safety and shopping at home, including online shopping.

Be wary of credit: try to stay out of debt

Once you are 16 you can sometimes enter into a credit contract – which is a whole different tin of biscuits, and a whole other level of contractual obligations.
With any contract, it’s very important you know what you are getting into.

If you are under 18, businesses will usually ask your parents to act as guarantor (meaning they will agree to pay if you can’t). You will also pay interest, sometimes at very high rates, and goods can be taken off you (repossessed) if you don’t make payments. There might even be penalty payments.
Not paying on time or at all will affect your credit rating – or your ability to borrow in the future.

Best advice is to save up for what you need and then shop around to find the best cash price.

It also pays to make sure you know how much the ongoing costs of the item are. If you buy a cellphone, for example, the costs for the calls can mount up quickly and you will be billed for those as well.

Haggle

Ask for a discount – and don’t be embarrassed about it. There’s no harm in asking – and you might get an even sweeter deal. The worst that can happen is that the person you are asking will say no.
Don’t be afraid to not buy something if you can’t reach agreement. There are plenty more places to buy. Equally don’t expect that every retailer will give you a discount just because you ask. Some items have very low profit margins for retailers, making a discount unlikely – but you may be able to negotiate other details of the deal – like accessories or bundled software for computers and so on.
The bottom line is if you don’t ask, you won’t get. The worst that can happen is that you’ll hear a no. Sooner or later you’ll hear a yes.

Use vouchers

If you have to buy something, why not see if suppliers are offering a discount.
Try the vouchermate website for Canterbury discount vouchers. Vouchers are available for cycle repairs, meal deals, beauty and fashion, DVD hire and many other deals. Often the vouchers are 'two-for-one' type deals, so take a friend and split the cost - you'll both save!

Buy second-hand

New and shiny stuff is nice, especially gadgets. But new doesn’t always mean best quality, or cool. If it’s clothing, you can alter it, change it or wear it your way. If its books – as long as you can read the words, there’s not much else that can go wrong. If the cd's not scratched, you’ll still be able to listen, so in most cases second-hand is as good as new.

For some items second-hand is a must – not many teens buy new cars for example. So get over the new thing and use the money you save buying second hand stuff to put towards that gadget or car or big ticket item you really have your heart set on...

Save

Getting into a saving habit early in your working career will really pay off in the long term. the Sorted website has plenty of info to help you start and continue a savings plan.

Put away the cellphone

It's probably the easiest way to spend your money - texts, calls, ringtones, videos and songs - it's easy to rack up the dollars. Get the cheapest plan you can. Shop around for the best deal on ongoing plan costs, and always try to pay only for what you need.

Tips from our readers:

Upasana, 17 says:

How about having a savings account and buying all the things at the cheaper cost and not actually buying things that are not needed.

Lorna suggests:

Learn to use a needle and thread, iron on tape, iron on paint,sparkles or motifs and you can easily restyle T-shirts and jeans that you know need a new look as you become bored with them.

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