Saving on a low income

Lesson 10 of 12 in our free Saving & Emergency Funds guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Saving & Emergency Funds is free for everyone.

Questions you'll answer

Help to Save: Mo saves £50 a month for 2 years (£1,200). The bonus is 50% of the highest balance. How big is his first bonus?

Saving £2 a week by standing order → Realistic. Small and steady builds the habit.
Putting part of a one-off windfall (like a tax refund) into savings → Realistic. Windfalls are great buffer builders.
Skipping meals to save money → Unhelpful. Your health matters more. Food is a need. If money for food is short, ask for help — it exists.
Checking you're getting all the benefits and support you're entitled to → Realistic. Unclaimed support is common. A benefits calculator can help.
Feeling guilty for not saving 20% → Unhelpful. Guilt isn't a strategy. Any amount is a win.
Fact: “Having savings can affect some means-tested benefits like Universal Credit.” — UC starts reducing above £6,000 of capital and stops above £16,000. Most small buffers are well below this.
Fact: “Help to Save bonuses are paid by the government.” — It's a government scheme, not a bank promotion.
Myth: “If you can't save this month, you've failed.” — Saving ebbs and flows. Restart when you can.